US fund manager Michael Carsley told a court that he plans to withdraw a case he filed against a horse betting club in Australia, which he claims owes him A$28 million or US$25 million, Bloomberg reported.
In a hearing in Sydney, New South Wales Supreme Court Registrar Andrew Musgrave said he was told by email that the proceedings lodged by Carsley's Aloga Ltd will not anymore push through. Simon Keizer, an attorney for the accounting firm that was subpoenaed to give financial records revealed that he was also informed of the same thing, the report said.
Edge, the wagering club run by former Australian horse owner William Vlahos and claimed that it had returns of 70% yearly, went out of business after it was sued by Carsley about three months ago. Based on court records, Vlahos said he was holding investors' money worth A$200 million in his bank account at that time. In December, Vlahos sought bankruptcy protection and now says he has no more money, the report said.
In his court filing in November, Carsley said he has worked with the funds management industry since 1994. From 2007 to 2010, he worked for Red Kite Management and Advisors Ltd. He then formed Bluewater Global Ltd after his stint at Red Kite. He added that he has dealt with investors who join horse-racing syndicates in the US, the report said.
Carsley's concern about Edge was expressed in his filing where he said, "I am familiar with quantitative analysis undertaken in betting in the horse industry. It struck me as unusual that investors would pay funds directly to Mr. Vlahos personally and I had concerns that without proper management in place, including at an operational level, the club would not be sustainable in the long term."
In a court filing, Carsley said that as of November 26, Aloga was owed A$27.8 million with costs and interests continuing to accumulate, Bloomberg reported.
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