In Sydney, Australia, Benjamin Carter, once a respected figure in the tax advisory world, now finds himself at the center of a major scandal. Prosecutors allege that he embezzled AU$26 million (US$17.5 million) from his clients to support a severe gambling addiction. Facing a myriad of charges, Carter has recently dropped a civil lawsuit against Sportsbet, the leading online sportsbook in the country.
Carter was apprehended in July 2013 at his home in West Sydney. Authorities accuse him of siphoning funds from eight clients of his firm, Carter’s Tax Advisory, to fuel his spiraling gambling habits. He faces 16 charges including 14 counts of dishonestly obtaining a financial advantage by deception, knowingly handling proceeds of crime, and possessing a prohibited drug.
The police have also implicated Carter in having connections with Sydney’s infamous Alameddine organized crime syndicate. His alleged victims are not just ordinary clients; they include prominent figures such as the beverage company Drink West, which is partly owned by Australian UFC fighters Tai “Bam Bam” Tuivasa and Tyson Pedro, and Nathan Cleary of the Penrith Panthers, a notable Australian rugby team.
In an interesting twist, just before his arrest, Carter had initiated a lawsuit against Sportsbet. He accused the sportsbook of luring him into continuous gambling despite his precarious financial condition. Court documents revealed that between 2021 and 2023, Carter placed a staggering AU$70 million in bets, often shifting hundreds of thousands of dollars into his Sportsbet account in single transactions. The company pampered him as a VIP, flying him across the country to attend races and sports events. A video obtained by the Sydney Herald even shows Carter enjoying a wild night in a Darwin nightclub with Sportsbet executives, belting out Daft Punk’s “One More Time” with his arm around Sportsbet CEO Barni Evans.
Carter charged Sportsbet with “unconscionable conduct” for failing to intervene and limit his gambling activities. However, Sportsbet’s legal team contended that Carter was portrayed as a high-rolling lifestyle individual whose gambling activities didn’t initially seem suspicious. They noted that the company frequently checked on Carter, who reassured them that his gambling was within his means and sustainable. When asked to verify the source of his wealth, Carter could not provide adequate proof. Sportsbet’s lawyers argued that it was Carter’s responsibility to identify and disclose his problem gambling, which he failed to do.
The reasons behind Carter’s decision to drop his lawsuit remain unclear. As his criminal proceedings continue, the case has been adjourned for six weeks while awaiting a forensic accountant’s report.
This saga draws comparisons to former Jackson Jaguars financial manager Amit Patel’s case, who was sentenced to six years in prison for embezzling approximately US$20 million from the NFL team and later sued FanDuel for promoting his gambling habits.
If convicted, Benjamin Carter could face a prison sentence of up to ten years.