EXCLUSIVE
Bloc billionaire Adrian Portelli has been charged by a state consumer watchdog over the conduct of his private lottery business LMCT+, Daily Mail Australia can exclusively reveal.
South Australian Business and Consumer Services launched an investigation into the operations of Melbourne businessman Mr Portelli’s lottery business as early as September last year.
And just a day after Portelli created a wave of positive headlines by handing out $150,000 worth of Coles vouchers to help struggling western Sydney residents buy groceries, the South African department confirmed it was prosecuting Portelli and Xclusive Tech Pty Ltd, trading as LMCT+.
Portelli faces nine counts of personal conduct/assisting in the conduct of an illegal lottery, and the company faces ten counts of the same charge, the courts confirmed.
If convicted on all charges, he could face a maximum penalty of $190,000. First mention is set for January 15 in the South Australian Magistrates Court.
Popularly known as ‘Mr. Lambo’ Portelli, 35, has an estimated net worth of more than $1 billion and made much of his fortune through LMCT+, a subscription-based lottery.
Gambling advocates have accused him of preying on the hopes of low-income Australians who pay up to $100 a month for lottery draws.
But the company says it’s simply a “membership rewards service” that generates millions of dollars for local businesses.
Adrian Portelli arrived at Coles in Fairfield West flanked by security guards
The company has more than 300,000 customers who pay a subscription fee, with options ranging from $20 to $100 a month.
It has more than 300,000 customers who pay a subscription fee, with options ranging from $20 to $100 a month.
Subscribers get access to discounts from partners such as Amazon, Temple & Webster and Elite Supplements, although the website only publishes the details to people who sign up.
The main attraction is the company’s monthly lottery drawings for cash, cars and homes. The last drawing, on November 24, resulted in one subscriber receiving $1 million in cash.
The more a subscriber pays, the more ‘cumulative entries’ they will get in each drawing.
Portelli operates LMCT+ under a New South Wales license as a “business promotion”, a type of lottery originally designed to help businesses attract customers by rewarding them with prizes.
Under the license, customers can participate in sweepstakes because they pay for the company’s “goods and services” — the rewards and discounts it offers.
Adrián Portelli’s company offers monthly drawings for cash, cars and homes. The last drawing, on November 24, resulted in one subscriber receiving $1 million in cash.
Portelli’s lavish lifestyle, which includes a collection of luxury cars and multimillion-dollar properties across Australia, is a subject of fascination for his fans.
A spokesperson for LMCT+ told Daily Mail Australia the company is a “member rewards service that proudly generates millions of dollars for local businesses and creates savings for Australian families”.
“The company also contributes to positive community initiatives through philanthropic investments,” the spokesperson said.
‘These results are particularly important during a cost of living crisis. Portelli and LMCT+ are very aware of their social license and take their legal and regulatory obligations seriously.
‘To this end, the company conducts itself in accordance with all required regulatory approvals and partners with the government to significantly contribute to economic and social projects.
“LMCT+ looks forward to generating more value for its partners and members over the Christmas holiday period.”
The businessman ranked seventh on the Financial Review’s young rich list this year, with an estimated net worth of $1 billion.
Thousands of western Sydney residents queued at 33C to receive a free Coles voucher on Tuesday
Mr Portelli’s lavish lifestyle, which includes a collection of luxury cars and multi-million dollar properties across Australia, is a subject of fascination for his fans.
He made headlines on Tuesday for giving away $150,000 worth of Coles vouchers to 1,000 Sydneysiders, many of whom waited in queues for hours in 33C heat.
The desperation of some attendees highlighted a national cost-of-living crisis.
Portelli arrived in Sydney on his private jet for the event and was flanked by security guards as he posed for photographs with delighted voucher holders.
“It’s fantastic to be able to offer help to families before Christmas,” he told Daily Mail Australia.
‘Why not? I can help with people, so I can also spend money.
He also surprised viewers earlier this month when he purchased all five Phillip Island properties on The Block for a staggering $15.03 million.
Portelli’s net worth has been valued at over $1 billion by the Australian Financial Review, taking into account his collection of properties and luxury cars, as well as the paper value of LMCT+.
The businessman ranked seventh on the Financial Review’s young rich list this year.