Ex-finance boss sues gambling firm at centre of DOJ inquiry
Sunday July 23, 2006
The Observer UK
The former chief financial officer of Betonsports, the internet gambling firm at the centre of an FBI investigation, is claiming the firm owes him over £100,000 in unpaid fees and share options .
Richard Ainsworth-Morris was chief financial officer at the Costa Rica-based firm for six months in 2001. He was assigned the task of preparing the firm for flotation, and was given options in it which he said never materialised.
Ainsworth-Morris has been chasing payment ever since, and the threat of legal action should, he believes, have been made plain to shareholders before the firm floated. 'This is a material legal issue and shareholders should have been informed of this,' he said.
A spokesman for Evolution Securities, which was Betonsport's City adviser, said that the firm satisfied all questions posed by the London Stock Exchange and the Alternative Investment Market.
But investors are said to be considering their legal position over the failure of Evolution Securities to reveal details of the background of Gary Kaplan, Betonsports' founder and largest shareholder.
Kaplan was convicted of a gambling offence in New York 13 years ago. Though not a director of the firm, Kaplan acted as a consultant. City rules say directors' pasts should be probed only in offer documents, but investors argue that Kaplan's history should have been revealed.
The arrest of Betonsport's chief executive, David Carruthers, in Texas last week sent internet gambling into a tailspin, with $1bn wiped off the sector.
Sunday July 23, 2006
The Observer UK
The former chief financial officer of Betonsports, the internet gambling firm at the centre of an FBI investigation, is claiming the firm owes him over £100,000 in unpaid fees and share options .
Richard Ainsworth-Morris was chief financial officer at the Costa Rica-based firm for six months in 2001. He was assigned the task of preparing the firm for flotation, and was given options in it which he said never materialised.
Ainsworth-Morris has been chasing payment ever since, and the threat of legal action should, he believes, have been made plain to shareholders before the firm floated. 'This is a material legal issue and shareholders should have been informed of this,' he said.
A spokesman for Evolution Securities, which was Betonsport's City adviser, said that the firm satisfied all questions posed by the London Stock Exchange and the Alternative Investment Market.
But investors are said to be considering their legal position over the failure of Evolution Securities to reveal details of the background of Gary Kaplan, Betonsports' founder and largest shareholder.
Kaplan was convicted of a gambling offence in New York 13 years ago. Though not a director of the firm, Kaplan acted as a consultant. City rules say directors' pasts should be probed only in offer documents, but investors argue that Kaplan's history should have been revealed.
The arrest of Betonsport's chief executive, David Carruthers, in Texas last week sent internet gambling into a tailspin, with $1bn wiped off the sector.
