A wagering company that receives stolen funds and credits them to a customer's betting account will be held to have constructive knowledge of the fraud (Baden category 3) where it was aware of circumstances that would have prompted an honest and reasonable person to make inquiries, and its change of position defence will fail for lack of good faith. The fraud exception to Torrens system indefeasibility applies where one co-purchaser has actual knowledge of fraud and the use of stolen funds, and that knowledge is attributed to the other co-purchaser on agency principles. Section 2.6.3 of the Gambling Regulation Act 2003 (Vic) does not apply to bets placed outside Victoria.
The full text is available to signed-in members, including the 18 later cases that cite this judgment.
3 of the 18 citing cases carry a classified treatment. How each court treated it is available to signed-in members.