Victoria

Bitter $16m feud ends as lottery winner pays out disgruntled syndicate members

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A Supreme Court trial was abandoned on Wednesday after members of a Geelong lottery syndicate reached an undisclosed financial settlement with the man they accused of cheating them out of a $16.6 million jackpot.

The shock announcement appears to have ended a bitter two-year feud between 20 courier drivers for Toll Group, who accused former colleague Gary Baron, 51, of duping them out of the massive windfall from a Powerball draw in October 2014.

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Lottery winner pays out syndicate members

Members of a Geelong lottery syndicate have reached a financial settlement with former colleague Gary Baron, who has been accused of swindling the group out of a $16.6 million Powerball jackpot in 2014.

Mr Baron had denied swindling his former co-workers, who had, since 2009, given him $20 each week to buy lottery tickets on a regular basis.

Mr Baron had claimed he bought the winning ticket using $46.60 of his own money and then three days later spent $520 on tickets on behalf of the syndicate.

In his opening address on Wednesday morning, Andrew Panna, QC, representing the disgruntled syndicate, told the court that Mr Baron had opened an online Tatts Group account in late 2013 and had made no attempt to separate his funds from those of the syndicate members.

Mr Panna then detailed how Mr Baron had called in sick on the day after winning the draw and suddenly resigned from his job citing a serious heart condition.

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In an extraordinary twist, Tatts Group employed a Toll Group courier to deliver a bottle of champagne to Mr Baron a week after the win, which further aroused suspicion among his former colleagues.  

Gary Baron has reached a settlement with his lottery syndicate.

Gary Baron has reached a settlement with his lottery syndicate.

The court was told Mr Baron had repeatedly refused to explain his newfound wealth when former workmates discovered he had bought a $200,000 convertible BMW M4 and a double-storey house in Lara.

It was not until May 2015 that he conceded that he was one of three winning groups to collect $16,666,666.67 in the $50 million jackpot.

The trial had been expected to be a test case for lotto syndicates, determining whether it constituted a partnership agreement or joint venture, which imposed a fiduciary duty on Mr Baron.

After the lunch interval on Wednesday, Mr Panna told the court that the matter would be settled, which is expected to be approved by the court on Thursday morning.

The syndicate members are believed to have previously been offered $4000 each by Mr Baron's lawyers before the trial if they agreed to waive all legal rights and sign confidentiality agreements.

Mr Baron did not make any comment to media as he left court.

The day after the Powerball draw in October 2014, Tatts Group released a statement from the three winners, including one anonymous response believed to be from Mr Baron.

"I'm going to share the prize money with my family," he told the Tatts official. 

"I'll make sure it doesn't change who I am, but I'll definitely be able to live a better lifestyle."