Punters' club man faces suit over Black Caviar's half-brother Big spender: The half-sister to Black Caviar, which Bill Vlahos' syndicate bought in 2012. A well-known Victorian racing identity accused of mishandling more than $190 million from an exclusive punters' club has not paid a $5 million bill for the half-brother of champion mare Black Caviar. Bill Vlahos, representing the BC3 Thoroughbreds syndicate, bought the yearling - the most expensive sale of its kind in Australian history - six months ago from bloodstock company Inglis. At a court hearing on Friday, Mr Vlahos was questioned over the whereabouts of a $194 million Westpac account containing the punters' club funds, but which the bank says does not exist. Bill Vlahos: Faces a lawsuit from Inglis over Black Caviar's half-brother. Mr Vlahos said he only realised the money was missing this week, as his Dubai-based business partner had been dealing with Westpac. Mr Vlahos has had more than $26 million of his fortune frozen and is prohibited from leaving the country after at least one disgruntled member of his exclusive punters club began legal action about the missing funds. He is now potentially facing another legal action over his purchase of Black Caviar's brother. Inglis is considering suing to recover payment for the colt, known as Jimmy, which until two weeks ago was gravely ill with a hoof disease, laminitis. Mr Vlahos and BC3 Thoroughbreds made headlines in 2012 when they purchased Belle Couture, the half-sister of Black Caviar, for $2.6 million. BC3 Thoroughbreds has reportedly told Inglis they were awaiting funds from the US to settle their debt for the injured colt. Black Caviar's lineage is now the most valuable in the southern hemisphere, but the illness, while not fatal, means the record-breaking colt is unfit for racing and could only have a stud career ahead of it. The insurance policy taken out on the colt can only be paid out on death. The gambling syndicate led by Mr Vlahos is understood to be made up of high-profile sporting and media identities who gave millions of dollars to him to bet on horse races on the promise of high returns. The court action over the syndicate was launched after Mr Vlahos repeatedly failed to hand over money allegedly owed to a company called Aloga, which is based in the tax haven of Bermuda. On Friday, the NSW Supreme Court heard Mr Vlahos told the company its $26,169,000 was held in a trust account with Westpac and he was arranging to have the funds transferred. But Mr Vlahos, who was ordered to fly up from his home in Torquay to take the stand, said that on Thursday he discovered that the account "did not exist." I'm shocked. I'm worried about everyone's funds including my own, which are substantial," he told the court. Mr Vlahos said he opened the account six years ago with a business partner, Daniel Maxwell, who now lives in Dubai. Mr Vlahos told the court that several years ago, while working as a psychologist, he treated Mr Maxwell for marital problems. Later, Mr Maxwell became involved in Mr Vlahos' punters' club. Mr Maxwell promised large trading volumes would be available for the gambling through his contacts, Mr Vlahos said. "I never had reason to doubt the existence of the account," he said. Mr Maxwell dealt with the account primarily. I never had reason to speak to anyone at Westpac about the account. On Tuesday it was reported that Mr Vlahos had emailed members of the punters club responding to members' concerns about delays in payouts after he revealed he was closing the club. Robert Dick, SC, for Aloga, said the freezing orders might have to be extended or taken out against other people to ensure the shareholders of Aloga retrieve their money. However, David Studdy, SC, for Mr Vlahos, suggested Aloga shareholders had invested $3.8 million and any amount higher than that "might be paper money - it's profit, it may not even exist." The court orders allow Mr Vlahos to spend $10,000 a week on ordinary living expenses and $200,000 for reasonable legal expenses.