I can't believe the financial devastation this would have brought to Yarrawonga. We were there a year ago considering retiring there. A beautiful place.
You bet 600 Yarrawonga residents are angry at losing $73 million in punting club
STEPHEN DRILL HERALD SUN DECEMBER 10, 2013 4:11PM
Bill Vlahos has spoken exclusively to The Herald Sun about The Edge Punters Club
"I'm very confident in two weeks' time that everyone will have their money," he said at the time.
Mr Vlahos met with the Herald Sun at Pure South restaurant in Southbank last Monday, December 2, for lunch.
As he ate his roast chicken meal, he was at pains to reassure his members they would be paid.
He said his investor overseas was about to release tens of millions of dollars that would square the ledger.
Then his world came crashing down after he told a court he found out that the Westpac account he had pumped $194 million into did not exist.
In a wide-ranging interview he spoke of the pain that his children might be bullied at school because of his punters club.
Bill Vlahos told the Herald Sun money would be repaid to punters.. Source: News Limited
And he denied that he ever planned to leave the country, saying his six-month stint in Singapore this year was to expand his horse racing business BC3 Thoroughbreds.
A syndicate of 600 people in Yarrawonga lost $73 million with the apparent collapse of the Vlahos punting club.
The northern Victoria border town was the epicentre of the secret club, whose first rule was that it was not to be discussed. There were up to 1000 members in total.
Furniture king Bill Guest and his company director Paul Bevilacqua, who owns a share in Black Caviar's half brother Jimmy, were among some of the high-profile investors.
Former Demons president Don McLardy also lost money, as well as media identities and punters in legal circles and the building trade.
One syndicate manager, who lost $9 million with a close group of friends, said the pain was widespread.
"In Yarrawonga there were 600 people, they lost $73 million," he said. "With my $9 million, that's only two of the syndicates, how much money is there?"
Mr Vlahos said he would back horses in Melbourne and Sydney races each Saturday, laying bets through an overseas middleman Daniel Maxwell who promised higher returns that Australian corporate bookmakers.
Mr Vlahos had direct contact with 20 syndicate managers, who in turn recruited their own members.
The Herald Sun understands members of the Yarrawonga Football Club were involved in the syndicate based in the town. Other members said they had lost more than $90,000 of their own money, before winnings were added.
"I heard about it through a friend, it sounded too good to be true," one member said.
"I feel like an idiot. This was my savings of a lifetime, it came from not paying down my mortgage. We're all a little bit greedy, it's human nature."
Former Demons President Don McLardy allegedly lost money in the punting club.
Another member said he was introduced by a work mate but didn't see the alarm bells.
"I was in it for three or four years, I just kept rolling it over," he said.
"People have been trying to get their money out for eight months. It fell over when a large investor wanted to get out."
The chase the for the missing millions will now begin.
But Mr Vlahos has no assets - his family home in Torquay is in the name of his wife Joanne.
And his Westpac bank accounts have been frozen until he returns to court for a hearing into how much he owes a company called Aloga, which was the name used by one of the club members.
Mr Vlahos had lunch with the Herald Sun last week where he promised to pay back all funds within two weeks.
He said members trusted him.
"There's nothing in writing because it's a punting club and it's a trust punting club, the people that are in it have made the decision that they understand how the punting club works between me and them," he said.
Mr Vlahos did not return calls or text messages yesterday.
Mr Guest, Mr Bevilacqua and Mr McLardy have all declined to comment.
stephen.drill@news.com.au