A fraudulent children's charity operator yesterday pleaded guilty to a multi-million dollar raffle scam.

In the Melbourne Magistrates Court, Lawrence Shannon, 49, of Park Orchards, faced a committal hearing on 118 charges relating to luxury car raffles run by his Kids at Sea charity.

After an adjournment meeting between lawyers for the prosecution and counsel for Shannon and his wife, Helen, a co-director of the charity, 27 charges against Helen Shannon were withdrawn.

Lawrence Shannon then told magistrate Donna Bakos he would plead guilty to the charges against him, subject to negotiations on their final form.

When he was charged in January, 2002, police alleged Shannon had rigged luxury car raffles for six years, defrauding ticket holders of $8 million. It is believed Shannon will argue he benefited by about $2 million. Using money raised by the raffles, which boasted prizes of Porsches, Bentleys, Lamborghinis and other luxury cars, Shannon ran an ocean racing yacht which he entered in the Sydney to Hobart race with disadvantaged youth included in the crew.