Former Australian betting syndicate leader Bill Vlahos is facing over 300 counts of financial deception for allegedly defrauding hundreds of investors between 2008 and 2013.
Yahoo 7 News reported that Vlahos, who formerly headed up the BC3 Thoroughbreds ownership group, appeared in Melbourne Magistrates Court last Thursday to answer allegations that he swindled millions of dollars from people who invested in betting syndicate, The Edge.
The prosecution will present more than 80 witnesses during the course of Vlahos’ four-week pre-trial, which will start on March 5. A pre-trial is conducted in order to determine whether the betting syndicate leader should stand trial.
Among those expected to present evidence before the court is the head of Ladbrokes Australia.
“There are a large number of witnesses,” defense barrister John Saunders told the court, according to the news outlet. “All but bar seven or eight are syndicate heads.”
Initially, the prosecution slapped Vlahos with 373 counts of financial advantage by deception but dozens of these charges were withdrawn last December, according to the report.
Investors of The Edge reported losing AUD120 million (US$96.18 million) to the Ponzi scheme. This amount was reduced to AUD40 million ($32 million) after some of the complaints were withdrawn.
Records show that Vlahos was a rising figure in racing through his company BC3 Thoroughbreds when the syndicate collapsed in December 2013.
AAuthorities alleged that Vlahos would supply punters with bet sheets representing the horses upon which bets were being placed, but put the money into his own account.
The prosecution must establish the relationship between Vlahos and the investors, especially after the accused brought up the name of a certain Daniel Maxwell. Vlahos claimed that he handed investors’ money to Maxwell, who in turn placed their high-value bets outside Australia.
The prosecution doesn’t believe that Maxwell exists. The defense plans to present a witness attesting to Maxwell’s existence.
