Six Las Vegas Sports Betting Funds Being Controlled by Ex-Con Ponzi Scheme Operators, Investor Payouts in Limbo
Posted on: May 6, 2019, 06:19h.
Last updated on: September 4, 2019, 11:48h.
Two men imprisoned in the 1990s for operating a Ponzi scheme shell company that pretended it supplied copy machines to financial institutions are in charge of at least $1 million invested in six Las Vegas several sports betting mutual funds, the Las Vegas Review-Journal has discovered.
John F. Thomas III — who was apparently born John F. Rodgers but is also known to investors as John Frank, John Marshall, and Jonathan West — operates six funds that are currently being scrutinized by the Securities and Exchange Commission because investors have claimed their dividends have dried up.
These are Einstein Sports Advisory, Quantum Sports Advisory, Wellington Sports Club, Vegas Basketball Club, Vegas Football Club and Sports Psychometrics.
Nevada Secretary of State records show that one Thomas J. Becker is assisting Thomas with management of these funds, which exactly matches the name of a man who was imprisoned with Thomas over the copy machine fraud.
What’s a Sports Betting Fund?
Sports betting mutual funds are essentially “hedge funds” in which pooled capital is wagered on sports rather than invested in securities.
Nevada legalized the practice in 2015, for the first time allowing sports books to accept investment from out-of-state individuals and businesses. Lawmakers hoped this would bring extra money into the sports betting sector but, in reality, many sports books found the regulations involved to be onerous, and preferred not to accept the mutual funds’ money at all.
And yet, despite the regulations, there have previously been concerns about financial mismanagement. A spokesperson for the Nevada Gaming Control Board told LVRJ that, as far as he was aware, Thomas’ funds were not operating illegally in Nevada.
‘Faster Than Buffett’
LVRJ said it spoke to about ten investors who had been struggling “for months or even years” to claim their returns, despite claims by the Wellington Sports Club website to have generated over 600 percent compounded gross profit in each of the past two years.
Thomas has claimed in his promotional materials that his secret lies in betting on favored teams using multiple parlay bets or round robins, which would be an unusual and high-risk method for a successful professional gambler.
“We grow money a million times faster than Warren Buffett … actually we grow it a quadrillion times faster. Just can’t move it into the banks that fast. Online sports betting solves the bank cash flow problem,” Thomas told one investor, before adding that the expected passage of a “national sports betting bill” will soon facilitate the movement of money via nationwide sports betting accounts.
No such bill has been proposed, nor would it be likely to pass if it were.
While the SEC has been in contact with several investors, which suggests it is looking into Thomas’ operations, the commission declined to share details with LVRJ reporters when contacted Friday.
A lawyer for both Thomas and Becker told LVRJ there were two sides to every story and that his clients were looking forward to “providing their perspective.”
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Last Comments ( 9 )
The SEC has frozen all of Wellington's assets (as well as those of Messrs. Becker and Thomas). At least one of the entities (Welscorp) is in chapter 7 bankruptcy in Las Vegas. Our law firm represents dozens of Wellington investors. We specialize in recovery of investment losses. [email protected]
Christine , They still are sending me updates of their weekly betting as Wellington Sports, while my web page with them shows that contract reached maturity and they owe me $75,000 on that one, plus they still owe me $25,000 on my first contract…yet, nothing happens to them! I am on second contract still nothing. They won't answer the phone a d won return calls. SCAAM!! I just want my money back it's all I had.
They still are sending me updates of their weekly betting as Wellington Sports, while my web page with them shows that contract reached maturity and they owe me $75,000 on that one, plus they still owe me $25,000 on my first contract…yet, nothing happens to them! I filed a complaint with FBI. I need my money back it was all I had.
Hello all - I am a defrauded investor who is trying to reach other investors interested in pursuing action against John F. Thomas and Thomas Becker, et al. Contact me at [email protected].
My question is: Why aren't these guys in jail NOW?! It seems the Gaming Commission, Attorney General of Nevada, or at least, the FBI would investigate them, and arrest them, and put them in jail. They still are sending me updates of their weekly betting as Wellington Sports, while my web page with them shows that contract reached maturity and they owe me $75,000 on that one, plus they still owe me $25,000 on my first contract...yet, nothing happens to them! I personally know of at least 3 others besides myself that these SCAM artists owe money to... yet nothing happens by Law Enforcement.
I put in 25000 dollars and it matured with the contract to pay me out 105000 and that was over a year ago and I have not received one penny back after I filed to take it out. Big Crooks stole the money and I do mean all of it. I would just be happy to get my 25 Grand back with no interest.
Jonathan West and Wellington Sports Club: I put money into Wellington Sports Club... after a friend and an acquaintance showed me their winnings. I followed the action weekly, and when my 'contract reached its goal,' I filed their forms to take out my initial investment and roll-over the remainder. The new contract also hit is goal (according to their online accounting). Bottom line is: They still owe me $100,000. Two of my friends also invested, and are owed serious money. Jonathan just keeps spewing the same old rhetoric...that their 'problem' is 'taking out the winnings and the IRS' in order to distribute to us...and the gambling bill that is soon to pass will fix that! What a croc!! I hope the FBI gets involved, because this is being done over state lines, which I thought makes it a federal crime...it is definitely a Ponzi scheme.
Hello Jack Smuckler, i just bumped into this article, i'm also an investor. were you able to get any more info regarding this ? lawyer etc. ?
Who is the attorney for Thomas and Becker? I am an investor in Quantum Sports Advisory and am owed over $400,000.00