Christopher Michael Brown, 32, was on Friday found guilty in the WA District Court of defrauding Bradley and Jennifer Shepherd on two occasions in 2020.Â
Brown, who pleaded not guilty to both charges and faced a judge-alone trial in September, befriended the Shepherds through their daughter, whom he had known socially for a few months.
The family, who own a dental practice in Perth, knew Brown lived an opulent lifestyle and believed he was a businessman doing deals with companies in Perth.
"He was very entertaining and engaging," Judge Genevieve Cleary said in her judgement.
In reality, Brown had little cash and few assets, not even a car, but he was addicted to gambling.
"He bet on some sport but it was mainly, as he said, on anything with legs," Judge Cleary said.
"At that time he considered himself to be a good judge of betting odds, although he agreed he was not a skilled gambler; in fact, a pretty hopeless betting person."
Brown agreed that until about mid-2021 he had lost about $10 million.
The Shepherds were unaware of Brown's addiction and believed their two instalments of $250,000 in August and October 2020 would be invested with an investment and property group called the JAGA Group.
Brown told them their cash would yield a return of $110,000 in just four months.
"Although the name JAGA did not mean anything to (Ms Shepherd) at the time, the names of the people associated with the group, such as Daniel (Cripps) and (AFL footballer) Patrick Cripps, did.
"She understood that the connection to JAGA was through Matt Bain, the AFL player manager."
But instead of investing the money, Brown used it on betting platforms.
He also spent it at golf resorts, hotels, wineries and restaurants, or gave it to others, prosecutors said.
The Shepherds' money was never repaid, and they did not receive any returns from their purported investment, the court heard during the trial.
Evidence showed that most of the first instalment of $250,000 was transferred to Brown's BetEasy ($120,020), Sportsbet ($60,000.93) and Ladbrokes ($40,000) accounts within hours of receiving it and wagered.
By October 2020, Brown had just $76.02 in his account, until the Shepherds transferred the second instalment of $250,000.
Brown gambled about $220,000 of this and much of the remainder went to lifestyle expenses, third parties and wineries.
Brown's defence case was that when he spoke to the Shepherds about investing their money, he believed the promises were true.
Besides, the Shepherds had signed a loan agreement with him, he said, which enabled him to use the money in his business, which included wagering.
Outside court, Brown, who is on bail, told reporters he was disappointed but accepted Judge Cleary's decision and "would have to move on".
"I sincerely apologise for my behaviour," he said.
"It's very embarrassing ... hopefully I can pay my dues."
Asked why he believed he could take advantage of Shepherds, Brown said he did not "believe that was fully the case".
He is scheduled to return to court on November 9 for sentencing.
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