The Jacksonville Jaguars' ongoing scandal involving a former employee defrauding them out of $22 million has resulted in the organization asking FanDuel to return $20 million. FanDuel is unwilling to pay the Jaguars back, however, the situation is ongoing between the organization, sports betting operator, and the NFL until a settlement is reached.
These funds were illegally obtained through Jacksonville’s virtual credit card system and used to play high-stakes daily fantasy sports, along with placing wagers on FanDuel Sportsbook. The former employee, a midlevel finance manager named Amit Patel, has already pleaded guilty to one count of wire fraud and one count of an illegal monetary transaction in federal court back in December 2023.
Usage of stolen funds
Patel allegedly committed fraud through Jacksonville’s virtual credit card system for over three years, pouring most of the stolen funds into high-stakes daily fantasy sports contests. The organization’s former financial manager transferred money from the team’s virtual credit card system directly into his FanDuel account.
Patel lost roughly $1 million playing DFS and placing sports wagers. Going under the name “ParlayPicker” on FanDuel, he earned a reputation for being one of the worst DFS players in the high-stakes contests he entered, costing up to $24,000 for a single entry.
Patel also purchased cryptocurrency, which he transferred into his FanDuel account in an effort to earn back the money he had previously lost on DFS contests and sports wagers. Additional allegations of a luxurious lifestyle include Patel purchasing cars, a condominium, jewelry, and sporting event tickets while booking lavish trips and chartering private jets.
Legal Update
Patel has already admitted to having a gambling disorder during his appearance in federal court in December. He’s currently in therapy for his addiction, however, his attorney, Alex King, has denied allegations that the stolen funds were used to fund his lavish lifestyle outside of sports betting.
If convicted during his upcoming trial in March, Patel could get up to 30 years in prison and a $500,000 fine upon being sentenced. He’s already waived his right to an indictment and has cooperated with federal prosecutors.
Under federal law, FanDuel is obligated to ensure funds used for sports betting are legally obtained, however, daily fantasy sports law is a bit more ambiguous. Patel’s attorney has also admitted that his client engaged “in a horribly misguided effort to pay back previous gambling losses.” Patel may also have to pay back over $22 million in property value since the Jaguars are listed as the victim of the crime in federal court documents.
