The Jacksonville Jaguars have requested FanDuel to reimburse them for some or the entire roughly $20 million in stolen proceeds a former worker misplaced on the positioning, however the firm is unwilling to pay, a supply acquainted with the state of affairs advised ESPN.
Amit Patel, a midlevel finance supervisor, has pleaded responsible to stealing $22 million by a digital bank card system the Jaguars used for bills. Sources with information of the case advised ESPN that Patel misplaced about $20 million of the funds on every day fantasy and sports activities bets at FanDuel, which had assigned him a VIP host. He misplaced about $1 million on DraftKings, sources mentioned.
Patel transferred cash instantly from the workforce VCC to FanDuel, sources mentioned.
The supply acquainted with the state of affairs mentioned discussions are ongoing amongst FanDuel, the Jaguars and the NFL on what the supply known as “a settlement.” Nevertheless, the supply mentioned, “The way in which they see it … we obtained this cash truthful and clear. It is not our drawback that we now have to forfeit it again to you.”
“I’d be gobsmacked if it occurred,” the supply added.
FanDuel and the NFL declined to remark. The Jaguars didn’t reply to requests for remark.
Patel siphoned the funds over 3½ years, in response to federal court docket paperwork. In December, he pleaded responsible to fraud expenses in federal court docket in Jacksonville, Florida. He faces as much as 30 years in jail and a $500,000 effective when he’s sentenced March 12.
Sources mentioned FanDuel alerted the NFL to Patel’s betting in January 2023 after he positioned conventional sports activities bets in Tennessee. The quantities and sorts of wagers that triggered the investigation are unknown. The Jaguars had no information of the embezzlement scheme or Patel’s intensive every day fantasy behavior till they had been notified by the NFL, workforce and league sources mentioned.
It is not clear what recourse the Jaguars might need to recoup the losses. Beneath federal regulation, FanDuel has an obligation to ensure funds used for sports activities betting had been legally obtained, however the rules are murkier for every day fantasy.
“Playing websites have an obligation to carry out ‘Anti-Cash Laundering’ and ‘Know Your Shopper’ procedures to make sure they don’t onboard funds of a bootleg origin,” mentioned Stephen Bell, an legal professional who practices in white-collar legal circumstances. “The place the dimensions of a buyer’s bets far outweighs their earnings, pink flags are current and will require extra due diligence to verify the funds are clear.”
On-line information present Patel was a high-stakes and high-volume every day fantasy participant on FanDuel and DraftKings, each of that are official betting companions of the NFL. Patel performed every day fantasy sports activities way back to 2017, the information present, and his play escalated in 2021 and 2022. ESPN beforehand reported that Patel performed every day fantasy below the username “ParlayPicker” and was believed to have racked up massive losses taking part in towards elite competitors in contests with buy-ins upward of $24,000.
One veteran every day fantasy participant advised ESPN on situation of anonymity that they imagine ParlayPicker is “the most important loser ever on FanDuel.”
“He was legendarily dangerous,” the individual mentioned.
Federal authorities say Patel lived an extravagant way of life whereas employed with the Jaguars that included chartering personal jets, reserving luxurious motels, buying a number of autos and buying cryptocurrency, a rustic membership membership, spa remedies and a wristwatch that value greater than $95,000.
Co-workers assumed Patel’s household was rich. One former workforce worker mentioned they keep in mind seeing Patel’s lavish way of life on his social media accounts, which he has since deleted.
“I keep in mind on Instagram he was taking baller-style journeys on a regular basis. Within the Hamptons, Miami, residing a big life. Bottle service at golf equipment,” the previous worker mentioned. “There was no means he might have afforded the approach to life based mostly on the Jaguar wage.”
In a Dec. 7 assertion, Patel’s legal professional, Alex King, denied that Patel funded his way of life with the stolen cash and mentioned his house and automotive had been purchased with household or earned cash.
“Mr. Patel didn’t use the Jaguars’ VCC to fund his way of life, however in a horribly misguided effort to pay again earlier playing losses,” King mentioned.
Patel mentioned throughout a December court docket look that he has a “playing dysfunction” and is seeing a therapist weekly for therapy. He mentioned he underwent therapy for alcohol and substance abuse from March to June final yr.
ESPN’s Michael DiRocco contributed to this report.
