Jaguars asked FanDuel to return stolen $20M, source says

[Mike Honcho 5,272]

 

Quote

 

ESPN

The Jacksonville Jaguars have asked FanDuel to reimburse them for some or all of the approximately $20 million in stolen proceeds a former employee lost on the site, but the company is unwilling to pay, a source familiar with the situation told ESPN.

Amit Patel, a midlevel finance manager, has pleaded guilty to stealing $22 million through a virtual credit card system the Jaguars used for expenses. Sources with knowledge of the case told ESPN that Patel lost about $20 million of the funds on daily fantasy and sports bets at FanDuel, which had assigned him a VIP host. He lost about $1 million on DraftKings, sources said.

 

Jeez, you would think after the first 19 million he lost he would have realized he had a problem.

[EternalShinyAndChrome 4,102]

2 minutes ago, Mike Honcho said:

Jeez, you would think after the first 19 million he lost he would have realized he had a problem.

You think the Jaguars have an actual case against FanDuel?  Couldn't they technically argue that FanDuel was receiving stolen goods?

I don't actually know - just spit-ballin' here.

[Mike Honcho 5,272]

11 minutes ago, EternalShinyAndChrome said:

You think the Jaguars have an actual case against FanDuel?  Couldn't they technically argue that FanDuel was receiving stolen goods?

I don't actually know - just spit-ballin' here.

From the article. Seems murky.

The source familiar with the situation said discussions are ongoing among FanDuel, the Jaguars and the NFL on what the source called "a settlement." However, the source said, "The way they see it ... we got this money fair and clear. It's not our problem that we have to forfeit it back to you."

It's not clear what recourse the Jaguars might have to recoup the losses. Under federal law, FanDuel has an obligation to make sure funds used for sports betting were legally obtained, but the regulations are murkier for daily fantasy.

"Gambling sites have a duty to perform 'Anti-Money Laundering' and 'Know Your Client' procedures to ensure they do not onboard funds of an illicit origin," said Stephen Bell, an attorney who practices in white-collar criminal cases. "Where the size of a customer's bets far outweighs their income, red flags are present and should require additional due diligence to confirm the funds are clean."

[EternalShinyAndChrome 4,102]

5 minutes ago, Mike Honcho said:

From the article. Seems murky.

The source familiar with the situation said discussions are ongoing among FanDuel, the Jaguars and the NFL on what the source called "a settlement." However, the source said, "The way they see it ... we got this money fair and clear. It's not our problem that we have to forfeit it back to you."

It's not clear what recourse the Jaguars might have to recoup the losses. Under federal law, FanDuel has an obligation to make sure funds used for sports betting were legally obtained, but the regulations are murkier for daily fantasy.

"Gambling sites have a duty to perform 'Anti-Money Laundering' and 'Know Your Client' procedures to ensure they do not onboard funds of an illicit origin," said Stephen Bell, an attorney who practices in white-collar criminal cases. "Where the size of a customer's bets far outweighs their income, red flags are present and should require additional due diligence to confirm the funds are clean."

Thanks, Mike!

This is going to be fun to watch. 

[TimHauck 2,871]

39 minutes ago, EternalShinyAndChrome said:

You think the Jaguars have an actual case against FanDuel?  Couldn't they technically argue that FanDuel was receiving stolen goods?

I don't actually know - just spit-ballin' here.

Plus the article says he was using a team credit card.  Seems like that should have raised some red flags before he lost $20 million first 

[edjr 6,586]

is that like when your kid buys 2 of everything on amazon with their parents phone?

[Cdub100 3,907]

Is that how gambling works?

[nobody 2,672]

1 hour ago, EternalShinyAndChrome said:

You think the Jaguars have an actual case against FanDuel?  Couldn't they technically argue that FanDuel was receiving stolen goods?

I don't actually know - just spit-ballin' here.

I'd counter sue for $20M and claim the jags tried to defraud FanDuel by wagering funds with the intent on claiming they should be reimbursed in the event they lost money.

[EternalShinyAndChrome 4,102]

Just now, nobody said:

I'd counter sue for $20M and claim the jags tried to defraid FanDuel by using wagering funds with the intent on claiming they should be reimbursed in the event they lost money.

That plan is so crazy IT JUST MIGHT WORK!!!

[nobody 2,672]

Like bro... That was your employee.  Maybe you should've had better processes in place.

[Gepetto 1,368]

2 hours ago, nobody said:

Like bro... That was your employee.  Maybe you should've had better processes in place.

This

[frank 2,306]

Don’t bet on it. 

[seafoam1 3,023]

If the guy went out and spent the $20M on expensive dinners, concerts, superbowl tickets, private air travel, fine art, high priced hookers and booze, instead of gambling, then what would they be doing? 

[BeenHereBefore 1,520]

44 minutes ago, seafoam1 said:

If the guy went out and spent the $20M on expensive dinners, concerts, superbowl tickets, private air travel, fine art, high priced hookers and booze, instead of gambling, then what would they be doing? 

Taking anything of value that was left.

[seafoam1 3,023]

4 minutes ago, BeenHereBefore said:

Taking anything of value that was left.

What if the art was painted by crooked hunter biden?

[WhiteWonder 2,735]

Issue 1 is between the Jags and the employee and their inability to detect that much in misused or missing funds. 

Issue 2 lies with FanDuel and their own lack of DD which seems to be against federal gaming regulations. Seems like the Jaguars can easily prove these funds were illegally obtained by the employee or not within company policy... it would then be up to FanDuel to argue how they would ever know that. It's not exactly the same as money laundering. 

Seems like FD would simply say, this was a legit customer who probably also used his own funds and we would have no way of knowing, regardless of any amount of KYC/AML in place, that this money was not his. Jaguars can then turn around and say that at some point, they should have realized his deposits, wagers, etc started to become much larger than his norm. OR if they started off so large, he would have qualified as a customer to look deeper into, especially since FD gave him his own VIP host. 

 

interesting.

 

The thing with DK... and I'd assume FD as well is that they are NOT profitable. They spend so much on customer acquisition. I believe DK had a $100 million loss in 2023 and thats EBITDA and are not projected to see positive results until 2025. DK customer service is trash (i'm a little biased yes) but none of these companies want to be giving any money back 

 

[BeenHereBefore 1,520]

11 minutes ago, seafoam1 said:

What if the art was painted by crooked hunter biden?

If it had value they would take it.