In Australia, Bill Vlahos, the person behind the former horse race betting system The Edge, allegedly pleaded guilty to two charges related to claims that he had defrauded customers over a six-year period from 2008, of more than $11.72 million.
According to a study by the Australian Broadcasting Corporation (ABC) on Monday. after being indicted in 2016, Vlahos submitted his guilty plea at the Victoria County Court and now had his bail expanded before a pre-sentence trial on February 4.
Citing formal trial records, ABC revealed that the 54-year-old is alleged to have set up The Edge Enterprise in 2002 and started offering thoroughbred horse-racing supporters the opportunity to gain large benefits by enabling him to wager on their behalf.
Prosecutors allegedly argue, however, that this program quickly became nothing more than a straightforward’ Ponzi scheme’ that eventually defrauded some 35 syndicates comprising 68 individuals out of millions of bucks.
ABC revealed that Vlahos, based in Melbourne, stated to have had a scheme that would help him define losing races and position payments on basis of his shareholders in return for 5% of any winnings. But attorneys allegedly claim that the dishonest entrepreneur used the acquired stakes instead to cash out other shareholders and serve his’ unrelated personal expenditure,’ which included setting up a amount of companies such as a stud farm and a wine delivery company. T
The broadcaster explained that the disgraced businessman was also believed to have wasted some of his customers’ money on business-class transport, a vacation house, Singapore school charges, and luxurious vehicles and clothing.
The broadcaster revealed that the Edge scheme slowly started to unravel in December 2013 when Vlahos submitted for bankruptcy after several members of the syndicate tried to cash out because they received no yields. Court papers allegedly suggest that the Australian had originally tried to alleviate investor concerns by giving them fake screen shots of bank account records displaying a total of over $114 million when the real count was nearer to $1,470.
It was reported on Monday by News Corp Australia that Vlahos was given bail after his lawyer presented proof indicating that the businessman was now broken and was unable to escape the nation financially. It also clarified that at the early February court date Judge Douglas Trapnell is set to officiate with the defendant now looking at the possibility of being convicted to a prison term.