A court was told that US fund manager Michael Carsley has dropped his claims against an Australian horse betting club. Carsley's lawsuit against the betting club stemmed from the latter's collapse in December of last year, Bloomberg said. he claimed that the betting club owed him A$28 million or $25 million and that the lawsuit was aimed to recover his losses incurred from the betting club's collapse.
According to New South Wales Supreme Court Registrar Andrew Musgrave at a Sydney court hearing today that the proceedings that were filed by Aloga Ltd, Carsley's firm, had been discontinued. Musgrave was informed about the discontinuation of the lawsuit via email. Bloomberg confirmed the dropped lawsuit from Simon Keizer, a lawyer who works at an accounting firm, who said that he received a subpoena to turn over financial records.
In November 2013, Edge, the horse betting club run by William Vlahos, collapsed after Carsley filed a case in state court in Sydney. Bloomberg said that Edge promised to its investors that investments in the club will have annual returns of 70%. According to court filings of Carsley's, Vlahos at that time had A$200 million of money from investors in his bank. On December 16, Vlahos filed for bankruptcy protection and claimed that he no longer has money.
Aloga's legal representative Robert Dick at a December 12 court hearing said, "When he gets asked to produce it, it gets blown up. Analogies about homework come to mind. We treat with utmost suspicion anything that Mr. Vlahos says."
Victoria state police said that since the collapse of the club, Vlahos has experienced violence purportedly because of his failure to return money to investors. They also added that they have launched investigations regarding the assault on Vlahos and potential fraud as well. Dick also said at an earlier hearing that Vlahos' truck, which was set on fire and blown up, contained Vlahos' computer that has pertinent financial details regarding the club's collapse.
