Racing trainer sells non-existent horse, gambles $2 million before going bankrupt
A former New Zealand equestrian trainer was found guilty of fraud last year for selling a non-existent horse. It was revealed this week that he lost more than $2 million illegally gambling before filing for bankruptcy, according to local media reports.
In June 2022, Mitchell Cole was sentenced to seven months of house arrest for selling fictitious animals for NZ$40,000 ($25,000). This doesn’t include other industry-related scams.
He also sent invoices to six horse owners for insurance premiums that he claimed were bogus policies to insure their horses. He also forged the signatures of the owners of two horses on documents to reduce ownership of the horses without their knowledge.
Cole was a successful coach during his three-year career, racking up 87 wins and earning about $900,000. He was banned from the industry for life for his misconduct.
familiar book
Kerr admitted several charges related to breaching insolvency laws in the Christchurch District Court on Wednesday and was sentenced to five months of house arrest.
A month before his suspension, Kerr filed for bankruptcy, owing creditors $270,000.
But just before that, he lost nearly $1 million after betting more than $2 million on horse and greyhound racing, The Press reported. This is a criminal offense under the New Zealand Insolvency Act.
Kerr also violated several other provisions of the law. That included reporting an annual income of $40,000, while an analysis of his bank accounts showed an annual income of nearly $228,000, according to court documents.
He also claimed he had opened only one bank account in the past five years, when in fact he had opened six bank accounts, prosecutors said.
Additionally, he was found to have continued to be involved in the management of his company, Mitch Kerr Racing, despite bankruptcy regulations prohibiting him from doing so.
Consumer Regret
Cole sold the phantom horse, an unridden three-year-old Standardbred horse, to the victim in September 2019.
The buyer became suspicious after Kerr failed to send ownership documents. Kerr then told the victim that the horse was unable to cover the distance and therefore failed. When Cole continued to demand proof of the horse's existence, he sent the buyer a photo of another horse that matched the description of the horse the buyer believed he was purchasing.
Following the fraudulent sales, Cole continued to charge the victims a total of $26,000 in training fees, fees and insurance premiums.
"I'm a different person now and I just want to put my head down and get on with my life," Cole claimed in court Wednesday. “I work every day and contribute something to the community.”
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Source: www.casino.org
