Arrest of Former Financial Advisor Highlights Gaps in Australia’s Anti-Gambling Regulations
Background of the Case
Anthony Del Vecchio, a former financial advisor from Freedom Finance in Melbourne, has been sentenced to seven and a half years in prison for illegally using clients’ funds to gamble. Among his victims was the Mazza family, who lost approximately $250,000 after being misled to believe their money was invested in secure, high-interest term deposits. It only came to light around Christmas that the funds had vanished.
Scope of the Fraudulent Gambling
Investigations revealed that Del Vecchio gambled with funds from over 30 clients. He lost close to $4.5 million across 52 different online betting platforms. These gambling sites employed strategies to encourage him to continue betting for extended periods.
Details of the Gambling Activity
A forensic accountant provided a detailed report listing the amounts Del Vecchio lost with each bookmaker. Judge Cannon emphasized how easily the advisor was able to gamble such large sums, most of which did not belong to him. The judge also noted that betting companies appeared to accept this money without raising any concerns or performing due diligence checks.
One platform, MintBet, accounted for over $1 million of these losses. When questioned, MintBet’s director and compliance officer declined to comment on whether they had investigated the sources of the funds used by Del Vecchio.
Lack of Legal Safeguards
Efforts to introduce legislation mandating betting agencies to return stolen money have been repeatedly blocked by the federal parliament. Independent MP Andrew Wilkie has attempted to pass such laws three times without success. He criticized both the government and opposition for failing to act, suggesting that their inaction serves to protect the gambling industry rather than victims.
The Role of VIP Client Management
Judge Cannon pointed out that several VIP managers at betting companies provided Del Vecchio with extra incentives to continue gambling any winnings he earned. Notifications would also be sent to these VIP clients if they had not placed bets or made deposits recently.
Contrary to popular belief, “VIP” clients often include ordinary individuals who simply wager large amounts. These clients are seen as vital for sustaining the revenue of gambling agencies. Industry insiders have revealed that VIP managers are frequently instructed to use special offers and perks to entice these players to keep betting.
