A man accused of fraud, whom prosecutors allege embezzled AU$26 million (US$17.5 million) from his tax advisory firm to support a rampant gambling addiction, has withdrawn his civil lawsuit against Australia’s top online sportsbook, Sportsbet. 

In July 2013, Benjamin Carter was taken into custody at his residence in western Sydney, Australia, for supposedly defrauding eight clients of his firm, Carter's Tax Advisory, according to The Daily Telegraph. 

He faced 16 charges, comprising 14 counts of fraudulently securing a monetary benefit through deception, knowingly engaging with criminal proceeds, and having an illegal substance. 

According to The Daily Mail, police have also alleged that the former tax agent has connections to Sydney’s infamous Alameddine organized crime group. 

$70 million in wagers 

Carter’s supposed victims consist of Drink West, a drinks firm partly owned by Australian UFC fighters Tai "Bam Bam" Tuivasa and Tyson Pedro, along with Nathan Cleary of the Penrith Panthers, a well-known Australian rugby club. 

Just prior to his arrest, Carter filed a lawsuit against Sportsbet, claiming that they provided him with incentives and perks to keep gambling despite his precarious financial status at the time. According to court documents, Carter wagered AU$70 million from 2021 to 2023, occasionally moving hundreds of thousands of dollars from his bank to his Sportsbet account in one day. 

In the meantime, the company transported him nationwide to races and sporting events as a distinguished guest. A video obtained by the Sydney Herald captured the rogue tax advisor enjoying a wild night out with Sportsbook executives at a nightclub in Darwin, singing along to Daft Punk’s “One More Time” while having his arm around Sportsbet CEO Barni Evans. 

Carter charged the sportsbook with "unconscionable actions" for not blocking his account or restricting his exposure to its advertising. 

'Regular Inspections' 

Sportsbet’s attorneys argued that Carter was a wealthy individual whose gambling patterns did not initially raise concerns. They stated that the company aimed for regular communications with Carter, who guaranteed them his gambling was "within his means and manageable." 

Subsequently, when the company asked for proof of the origin of his wealth, he could not supply it. Sportsbet's lawyers contended that it was Carter's duty to recognize himself as a problem gambler, but he failed to do that. 

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

The situation resembles that of former Jacksonville Jaguars financial manager Amit Patel, who was incarcerated for six years for stealing approximately US$20 million from the NFL franchise. At the beginning of this month, he filed a lawsuit against FanDuel for promoting gambling to him. 

Carter could receive as much as 10 years in prison if found guilty.