Financial planner defrauded $4.5M for gambling addiction

A financial planner named Anthony Del Vecchio has pleaded guilty to defrauding nearly $4.5 million from family and friends to support his online gambling addiction. The 32-year-old used the stolen money to gamble on 52 different betting accounts and sometimes placed bets of up to $20,000 a day. Del Vecchio operated a Ponzi scheme from February 2020 until December 2023 while working at Freedom Finance Australia. He convinced friends and relatives to invest in various financial products, but instead directed the funds to his own bank account. Many of his victims spoke in court about the emotional and financial toll his actions have caused. One victim, Michael Del Vecchio, reported losing over $200,000. He described the betrayal as devastating and stated that it has shattered family relationships. Other victims echoed similar sentiments, expressing distress over the absence of any remorse from Del Vecchio. The court heard that online gambling companies contributed to Del Vecchio's addiction by sending him free tickets, reminders, and encouragement to continue betting. Lawyers representing Del Vecchio noted the role of gambling apps that made it easy for him to access money and gamble. Several victims criticized the Commonwealth Bank for not flagging the suspicious transactions in Del Vecchio's account. They questioned why the bank did not intervene, given the rapid and large transfers of money. A judge will determine Del Vecchio's sentence next month. Legal experts suggest that online gambling companies may face liabilities if they ignore signs of problematic gambling behavior.