New chase for jailed fraudster Bill Vlahos’ punting club millions

A leader of one of the syndicates in Bill Vlahos’ punting club Ponzi scheme is being chased for more than $13m, with a showdown scheduled in court next month.

A leader of one of the syndicates in Bill Vlahos’ punting club Ponzi scheme is being chased for more than $13 million, with a showdown scheduled in court next month.

Bankruptcy trustees are pursuing Sam Davidson who was one of dozens of spruikers for the scheme run by the jailed fraudster.

At least 1500 punters across Australia, London and even Russia poured in more than $150 million into Vlahos’ scheme.

Some police were unwitting victims of the scheme, along with many of Vlahos’ family and friends.

The psychologist was promising 25 per cent returns betting on Melbourne and Sydney races but it was actually a Ponzi scheme.

Vlahos was jailed for nine years in 2022 over the fraud, which was uncovered by this masthead in December 2013.

Racing syndicate fraudster Bill Vlahos. Picture: David Crosling

Now a bankruptcy trustee is demanding Mr Davidson explain what he did with the $13.2 million he received from Vlahos after the Federal Court rejected his bid to have the case thrown out.

“(Mr Davidson) does not dispute that he received from the bankrupt a total sum of $13,277,669, having deposited with the bankrupt $1,879,116.49,” the judgement said.

“(Mr Davidson) alleges that he has distributed sums totalling $12,003,322 to members of the syndicate of which he was the syndicate leader, on whose behalf he lodged funds with the bankrupt to place bets.”

The one-time home of Bill Vlahos sold at a weekend auction for $1.04 million.

Mr Davidson denied any knowledge that the punting club was a Ponzi scheme.

He argued that bankruptcy trustee Philip Newman had waited too long to chase the money, only seeking information in 2019.

The case has dragged on so long that the original bankruptcy trustee Clyde White has retired.

The Federal Court dismissed Mr Davidson’s legal arguments, demanding that the bankruptcy trustee and Mr Davidson come up with a timeline to deal with the matter by January 22 next year.

Vlahos was at one time a darling of Australia’s racing industry.

He hit the headlines with the $5 million purchase of Jimmy, the half brother of champion racehorse Black Caviar.

Bill Vlahos and his wife, Joanne, at Christmas.

Jimmy’s potential was never tested after he died of laminitis following a spider bite.

Vlahos funnelled money from the Ponzi scheme into his racing company BC3 Thoroughbreds.

He also spent money on trips to Dubai, accompanied by strippers he met at the Men’s Gallery.

Judge Douglas Trapnell said when sentencing Vlahos that the offending was “dazzling”.

“Nearly all victims have suffered strain to their personal relationships,” he said.

“Some victims’ relationships ended in divorce or separation due, at least in part, to the stresses brought on by the collapse of the punting club.

“Many victims no longer speak with friends and family members involved in the punting club.”