The multi-million dollar punting club The Edge, co-ordinated by BC3 Thoroughbreds chairman Bill Vlahos – which allegedly owes its members at least $million – is likely to be thecause of a violent attack on him and the torching of a car last weekend.
It is believed that outlaw motorcycle gangs and other criminal elements were among Mr Vlahos investors in a $500 million scheme. Others included police, real estate agents, restaurateurs, construction industry executives and syndicates.
On Sunday, police responded to reports of an assault at a property owned by Mr Vlahos in Connewarre, southwest of Melbourne. He was treated at the scene for facial injuries.
After what appears to be intimidation over Mr Vlahos’ co-ordination of a gigantic betting syndicate known as The Edge, a day later he resigned as director and secretary of BC3 Thoroughbreds.
Vlahos’ resignation came just days after he appeared in court over allegations he mishandled nearly $200 million linked to the exclusive punters’ club.
During his NSW Supreme Court appearance, his lawyer who resigned later on this week, warned that Mr Vlahos had received threats and was concerned for his safety. Emails obtained by Fairfax Media also revealed that Mr Vlahos feared physical violence and action directed against him.
During the court hearing Mr Vlahos denied any knowledge of the fate of the punters’ club money, claiming that his Dubai-based business partner Mr Daniel Maxwell had been responsible for its accounts.
“I’m shocked. I’m worried about everyone’s funds, including my own, which are substantial,” Mr Vlahos told the court.
The Edge’s members, believed to include amongst others high-profile sporting and media identities, were promised 25 per cent annual returns on their investment.
Questions are now being asked as to whether The Edge actually placed bets at all, with major betting companies in Australasia reporting they had not handled any wagers from the group.
Mr Vlahos admitted in court that an account set up to bank members’ stakes over the past six years did not exist.
After early returns of 21.1 per cent each quarter, The Edge paid out over 46 per cent on clients’ investments in the final quarter of 2012. When a number of members took their money out earlier this year, the scheme began to unravel, prompting Vlahos to wind up the club.
It is reported that in August this year that PLG Capital Funding Group from the United States agreed to lend Mr Vlahos a sum of money believed to be in the vicinity of $US 178 million. It is not known yet whether Mr Vlahos actually received the money.
Mr Vlahos has also been accused of failing to pay a $5 million bill for the half-brother of Black Caviar’.Subsequently Racing Victoria has said that its Integrity Department is to investigate the conduct of BC3’s business affairs.
Racing Victoria has regulatory control over the conduct of thoroughbred racing in the state but does not have control over punters clubs or wagering schemes. The Fraud Squad is also reported to have begun an investigation into BC3’s affairs.
The Vlahos case will return to court on December 20. Until then, an order freezing more than $26 million of his assets money is in place. Vlahos is also prohibit him from leaving the country.
Sources: Fairfax