Former Youbet CEO Resigns Board Position
Updated: Wednesday, October 31, 2007 3:25 PM
Posted: Tuesday, October 30, 2007 7:43 PM
Former Youbet co-founder and chief executive officer David Marshall has resigned his position as vice-chairman of the company’s board of directors, according to an Oct. 30 filing with the U.S. Securities and Exchange Commission.
Marshall, who served as Youbet’s CEO from 1989-1998 and briefly in 2002 before being replaced by Charles Champion, apparently resigned after receiving notice from Youbet that it was terminating a service agreement with him, according to the filing.
Youbet said it terminated the agreement as “part of its ongoing efforts to reduce costs,” pegging the savings at $350,000.
“Mr. Marshall had no disagreement with management or with another member of the board with respect to Youbet's operations, policies or practices that arose in connection with, or was otherwise related to, his resignation,” the filing said. “In his letter, he expressed his regrets that he could not continue to effectively serve as a Youbet director in light of other companies and projects that require his time and attention.”
The filing said that under the agreement, “Marshall had agreed to provide Youbet with certain consulting services in exchange for payment … of an annual base fee and the provision of certain benefits to Marshall consistent with benefits provided to Youbet's senior management."
According to a profile on the Youbet Web site, Marshall was the co-founder of MiddleWare Telecom Corporation and PC-Totes, companies that eventually merged into Youbet.
In September 2005, Marshall founded NUI, a food and beverage/media and entertainment company. Marshall is also currently the chairman of the board of Pro Elite, Inc. and of Santa Monica Media Corporation, according to his profile.
A Youbet spokesman did not immediately return a call seeking comment. Attempts to reach Marshall were also unsuccessful.
The resignation is the latest in a series of developments involving Youbet. A subsidiary, International Racing Group, is involved in a federal investigation which is looking into the operations of the off-shore rebate shop.
Youbet, which had its California headquarters searched by federal agents in early October, has said in SEC filings that the investigation involves IRG customers, some of its employees, and possibly a former owner.
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