Gambler Accused of Embezzling $26M Drops Lawsuit Against Sportsbet

Gambler Accused of Embezzling $26M Drops Lawsuit Against Sportsbet

A suspected fraudster who prosecutors assert embezzled AU$26 million (US$17.5 million) from his tax consultancy to finance a spiraling gambling habit has withdrawn his civil lawsuit against Australia’s top online betting company, Sportsbet. 

In July 2013, Benjamin Carter was apprehended at his residence in western Sydney, Australia for allegedly defrauding eight clients of his firm, Carter’s Tax Advisory, according to The Daily Telegraph. 

He faced 16 charges, comprising 14 counts of fraudulently acquiring a financial benefit through deception, knowingly handling proceeds from crime, and having a restricted substance. 

According to The Daily Mail, authorities have also alleged that the former tax agent is connected to Sydney's infamous Alameddine crime syndicate. 

$70 million in wagers 

Carter’s purported victims consist of Drink West, a beverage firm partially owned by Australian UFC athletes Tai “Bam Bam” Tuivasa and Tyson Pedro, along with Nathan Cleary of the Penrith Panthers, a well-known rugby team in Australia. 

Just prior to his arrest, Carter filed a lawsuit against Sportsbet, alleging that they had provided him with comps and incentives to keep gambling despite his dire financial circumstances. According to court documents, Carter wagered AU$70 million from 2021 to 2023, at times moving hundreds of thousands of dollars from his bank account to his Sportsbet account within a single day. 

In the meantime, the company transported him nationwide to competitions and sporting events as a VIP client. A clip obtained by the Sydney Herald captured the rogue tax consultant celebrating intensely with Sportsbook executives at a Darwin nightclub, singing along to Daft Punk’s “One More Time” while his arm was around Sportsbet CEO Barni Evans. 

Carter charged the sportsbook with “unconscionable behavior” for not restricting his account or minimizing his exposure to its promotions. 

‘Regular Inspections’ 

Sportsbet’s attorneys argued that Carter was a wealthy individual whose gambling behaviors did not initially signal any concerns. They claimed the company pursued regular engagement with Carter, who guaranteed them his gambling was “within his limits and manageable.” 

Subsequently, when the firm sought proof of the origin of his wealth, he couldn't supply it. Sportsbet's lawyers contended that it was Carter's duty to acknowledge himself as a problem gambler, which he failed to do. 

The reason behind Carter's decision to withdraw his civil case against the sportsbook remains uncertain. His criminal case has been postponed for six weeks awaiting a forensic accountant's report. 

The situation is reminiscent of former Jackson Jaguars financial manager Amit Patel, who served six years in prison for stealing approximately US$20 million from the NFL franchise. Earlier this month, he filed a lawsuit against FanDuel for promoting gambling to him. 

If convicted, Carter could serve a maximum of 10 years in prison.