The only good thing to come out of this utter schemozzle is that laws should be tightened and hopefully enforced in future. But then again, that's what was supposed to happen with the banks....
Tote chief snubs $14m claim
The liquidator of failed sports betting company Sports Alive has demanded $14 million compensation from TOTE Tasmania chief executive Craig Coleman and Victorian directors.
In a letter early this month, liquidator Hamish MacKinnon demanded the money be paid by December 14.
It is understood Mr Coleman has refused to pay and the TOTE Tasmania board has refused to discuss the situation.
The letter alleged Mr Coleman had a conflict of interest in simultaneously being chairman of Sports Alive and chief executive of TOTE.
In a letter to all Sports Alive directors, Mr MacKinnon alleged: Sports Alive was trading while insolvent from June 2008, including the period under Mr Coleman's chairmanship. Sports Alive was in breach of the Race and Sports Betting Act by failing to keep punters' money separate from administrative funds. Directors had breached their duties and had failed to act in good faith in the best interests of the company.
For allowing this to go on for three years, the ACT Gaming and Racing Commission should be criminally liable... but they'll weasel out of it, like a typical pointless bureaucracy. Any other state or territory in Australia would have flagged this very early and barred them from trading while insolvent. No betting licence in the ACT is worth the paper it is written on anymore.