Michael Charles Pryde of Simply the Bets to be sentenced for $1.2 million scam

Fraudster Michael Charles Pryde is likely to avoid prison over a failed sports betting algorithm that fleeced a Sydney business figure of $340,000 and cost another $250,000, despite stunning admissions in a notebook found by police.

A fraudster is likely to avoid prison over a failed sports betting algorithm that fleeced one Sydney business figure of $340,000 and cost another $250,000, despite stunning admissions in a notebook police found in a bin and in electronic notes stored on an iPhone.

As far back as 2013, Michael Charles Pryde claimed he had developed a punting algorithm which couldn’t fail.

And for a while it did work, with more than $2 million paid out as winnings.

But he recently admitted nearly 20 people were unable to recover almost $1.2m.

According to his bankruptcy trustee, Pryde convinced more than 100 people to part with as much as $5.5m.

Michael Charles Pryde arriving at court on Tuesday morning. Picture: Rohan Kelly

Michael Pryde was extradited from Brisbane to NSW last year.

Some were former school mates at St Joseph’s College Hunters Hill. His family invested heavily.

In March, Pryde pleaded guilty to dishonestly obtaining financial advantage by deception and using a false document to obtain financial advantage.

On Tuesday, his lawyer John Sutton told the Downing Centre Local Court an intensive corrections order of up to three years was appropriate punishment.

Police prosecutor Wayne Law said there was no objection to an ICO, which is served in the community not prison. He also sought a compensation order for $100,000 – the jurisdiction limit.

Mr Sutton said: “I point out my client is bankrupt, so it is largely academic.”

Magistrate Scott Nash said while he understood both sides “were as one”, the court had to reach its own decision.

Excerpt from an email Pryde sent to devastated investors.

Earlier, Mr Sutton had painted a sympathetic picture of his client, saying there were “no fast cars, no extravagant holidays, no expensive jewellery, no frittering money away on his own personal circumstance.

“This is not Melissa Caddick,” he added, in reference to the notorious financial adviser turned fraud queen who misappropriated about $30m from investors in an elaborate Ponzi scheme.

But a previously unreported statement of agreed facts filed with the court shows Pryde knew he was operating a Ponzi scheme.

The statement includes an electronic note that police found on Pryde’s phone, dated November 12, 2022, which said in part: “I’ve run a Ponzi scheme for eight years. Somehow, I’ve only started getting legal trouble in the last 6 months.”

Mr Sutton had told the court his maths whiz client incurred a debt and began betting in an “ill-disciplined” way to win more and repay what was owed.

Losses started to occur, however Pryde let people keep on putting money in, which his lawyer acknowledged was a crime.

“He committed the offence by continuing to allow deposits into the scheme,” Mr Sutton said.

The debt was not explained in court, but is detailed in another electronic note on Pryde’s phone.

“In 2015 I made a mistake which cost ~$33k which I deliberately did not disclose,” he wrote.

“My intention at the time was to ‘win’ the $33k back quickly and move on with business. I have continued to bring on new clients as a way of paying out clients and all this has created a fraudulent cycle of behaviour from myself. There is no excuse for what I have done, it is as unethical as it is illegal.”

And a black notebook police found in a bin in Pryde’s apartment said “I’ve lived through this lie for 6-7 years. I lied about some of the ways in which I was gambling”.

One of the electronic notes said: “The reality is I came to America to die. I figured I’d come here, give myself 7-8 weeks then party myself to death (probably OD in some way).”

A sentence is due to be delivered on Thursday.

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