Prominent racing figure Bill Vlahos pleads guilty to A$18 million fraud

Bill Vlahos, the organiser of a betting syndicate and a prominent figure in Australian racing, pleaded guilty of defrauding punters nearly A$18 million on Monday.

Vlahos, who bought several horses under his BC3 Thoroughbreds banner, including Black Caviar's A$2.6m half-sister Belle Couture, admitted two charges of obtaining financial advantage by deception between 2008 and 2013 at the County Court of Victoria, and judge Douglas Trapnell said it was "inevitable" he would be jailed following the crimes.

The prosecution initially alleged Vlahos's venture – essentially a 'Ponzi scheme' – had cost the betting syndicate's 1,000-plus members as much as A$120m, although that figure was subsequently scaled down.

The 54-year-old, based not far from Melbourne near Geelong, is not considered a flight risk and has had his bail extended until February 4 when a pre-sentence hearing is scheduled.

Vlahos filed for bankruptcy in 2013, when the syndicate, known as The Edge, folded and the two charges against him represent 68 victims in Australia and overseas.

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