Gambler Accused of Embezzling $26M Drops Lawsuit Against Sportsbet

Posted on: October 13, 2024, 01:27h. 

Last updated on: October 14, 2024, 10:18h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

An accused fraudster who prosecutors claim stole AU$26 million (US$17.5 million) from his tax advisory business to fund an out-of-control gambling addiction has dropped his civil lawsuit against the country’s leading online sportsbook, Sportsbet.

Benjamin Carter, Sportsbet Carter Tax Advisory, Sydney
Benjamin Carter, above, pictured before his arrest on suspicion of embezzling $26 million from clients at his tax advisory business. (Image: Accountants Daily)

Benjamin Carter was arrested in July 2013 at his home in west Sydney, Australia for allegedly swindling the money from eight clients of his company, Carter’s Tax Advisory, The Daily Telegraph reports.

He was charged with 16 offenses, including 14 counts of dishonestly obtaining a financial advantage by deception, knowingly dealing with proceeds of crime, and possessing a prohibited drug.

Police have also accused the former tax agent of having links to Sydney’s notorious Alameddine organized crime syndicate, according to The Daily Mail.

$70M in Bets

Carter’s alleged victims include Drink West, a beverage company part-owned by Australian UFC fighters Tai “Bam Bam” Tuivasa and Tyson Pedro, and Nathan Cleary of the Penrith Panthers, a prominent Australian rugby team.

Shortly before his arrest, Carter sued Sportsbet, which he accused of offering him comps and inducements to continue gambling despite his then-perilous financial situation. Carter placed AU$70 million in bets between 2021 and 2023, sometimes transferring hundreds of thousands of dollars from his bank account to his Sportsbet account in a single day, according to court filings.

Meanwhile, the company flew him across the country to races and sports games as a VIP customer. A video acquired by the Sydney Herald showed the rogue tax advisor partying hard with Sportsbook executives in a Darwin nightclub and singing along to Daft Punk’s “One More Time” with his arm around Sportsbet CEO Barni Evans.

Carter accused the sportsbook of “unconscionable conduct” by failing to block his account or limit his exposure to its marketing.

‘Frequent Checks’

Sportsbet’s lawyers countered that Carter was a wealthy highflyer whose betting habits did not initially raise red flags. They said the company sought frequent interactions with Carter who assured them his gambling was “within his limits and sustainable.”

Later, when the company requested evidence of the source of his wealth, he was unable to provide this. It was Carter’s responsibility to identify himself as a problem gambler, but he did not do so, lawyers for Sportsbet argued.

It’s unclear why Carter dropped his civil case against the sportsbook. His criminal case has been adjourned for six weeks pending a forensic accountant’s report.

The case echoes that of former Jackson Jaguars financial manager Amit Patel, who was imprisoned for six years for embezzling around US$20 million from the NFL team. Earlier this month, he sued FanDuel for encouraging him to gamble.

Carter faces up to 10 years in prison if convicted.