Accused sports bet scammers pilfer $3.5m

AN alleged $3.5 million sports betting and investment scam on the Gold Coast targeted single mums and miners, and appointed backpackers as directors, Brisbane’s District Court has heard.

Aaron Colin East has pleaded not guilty to two counts of dishonestly inducing others to deliver banking credits of at least $30,000 to two companies.

The court heard East was a member of a joint criminal enterprise that sold bogus sports betting and investment software to unsuspecting punters.

Co-accused Theresa Faye Merlehan pleaded not guilty to one count of fraud.

In his opening statement crown prosecutor Greg Cummings said the alleged fraud involved a “very sophisticated operation” involving 167 victims “at the very least”.

The alleged scam involved a number of companies operating from the Gold Coast selling sports betting or commodities market software for about $18,000 over an 18-month period beginning in January 2014.

The court heard potential customers were called by a telemarketing team and told the software could deliver profits of $60,000 to $80,000 annually.

However, once customers purchased the software it did not “work on any level”.

The court heard when the number of complaints became overwhelming the company would change its name but continued selling the sports betting software.

At one point the accused set up Compass Capital Group that sold trading software for commodities such as gold, the court heard.

“In fact it was little more than a sorting spread sheet,” Mr Cummings said. “Once again it was worthless”.

The court heard the alleged criminal enterprise created a false presence in internet forums, fake referees and glossy brochures to lend the companies legitimacy.