Aussie lawyer John Adams got away with an alleged two-decade Ponzi scheme only exposed after his death last week. [Image: Shutterstock.com]

Dead man’s curveball

The sudden death of a sports and racing powerbroker in the Australian state of Victoria last week has revealed approximately AU$21.8m ($13.89m) has gone missing from accounts linked to Victorian sportsbooks, according to the Sydney Morning Herald.

The death of AMS Ivanhoe Lawyers’ John Adams has exposed what Herald Sun crime writer Andrew Rule stated on Tuesday could be one of the “biggest Ponzi scams in Australian history.”

tens of millions of dollars”

On the same day, the Victorian Legal Services Board (VLSB) confirmed its probe into the Melbourne law firm over the “tens of millions of dollars” that have allegedly gone missing from victims, including “high profile” investors.

Sportsbooks out of pocket

The VLSB issued a statement that, while it was aware of the allegations that Adams misappropriated investment funds and was conducting a “preliminary assessment,” its investigative, regulatory and enforcement powers were limited as the alleged crime is outside the state body’s legal remit.

The Victorian Bookmakers’ Association (VBA), meanwhile, oversees an AU$10m ($6.3m) fund for its clients. According to the Herald, a source close to the sports betting body estimated AU$1.8m ($1.1m) had gone missing, with at least AU$20m ($12.7m) in “additional private investments.”

one private investor is looking into an AU$11m ($7m) hole

The VBA fears the impact of the missing cash ahead of the Melbourne Cup and Australia’s lucrative spring horse racing season, while one private investor is looking into an AU$11m ($7m) hole.

Slim hopes

7 News Melbourne reports that while the VLSB is working with Victoria Police, it “remains unclear” if any of the missing funds will be recoverable from a scam that Adams had allegedly run for over two decades.

Adams, a prominent figure in the Victorian racing scheme, would host regular lunches close to his offices in the Melbourne suburb of Ivanhoe, “as a way to recruit more investors.”

While there’s nothing the authorities can do now to Adams, it’s a different story for New York investment banker Rashawn Russel, who in April learned he faces 20 years in prison for an alleged crypto Ponzi scheme.