Australian criminals and their Crimes. Con artists, scum bags, murderers, corrupt cops, pollies, rapists and paedophiles will find themselves in this blog. It was expanded to also cover those that ought to be charged for their idiotic disgusting behaviour. Usually high-profile people who think they are above the law
Former Ipswich mayor Paul Pisasalehas been arrested and charged with extortion amid an investigation by the Crime and Corruption Commission (CCC).
Mr Pisasale was arrested by the CCC this afternoon in Ipswich and was taken to the Brisbane police watch house where he was formally charged with extortion and two other offences.
The CCC said the investigation was ongoing.
Prior to being charged, acting Ipswich Mayor Paul Tully said he and his colleagues were shocked by Mr Pisasale’s arrest.
“As I understand it, these are strictly personal matters — have nothing to do with the Ipswich City Council,” he said.
“It is a matter for Paul and his legal advisors and the Queensland judicial system.
“We had no warning that this could happen, but the city must go on and we’re going to provide positive leadership into the future,” Cr Tully said.
“Our sympathies do go out to Paul’s family who are obviously very concerned at this difficult time.
“I think people will still remember Paul whatever happens as the person who put Ipswich on the map, did a lot of economic development for the city.
The Fitzgerald Inquiry | Crime & Corruption QLD | 1989 – The Fitzgerald report was tabled in Parliament in July 1989. It made over 100 recommendations covering the establishment of the Electoral and Administrative Review Commission and the Criminal Justice Commission (CJC) and reform of the Queensland Police Force. Download the report here: http://www.ccc.qld.gov.au/about-the-ccc/the-fitzgerald-inquiry
Beyond Bethany | 3 Mar 2008 – Twenty years on Chris Masters assesses the Joh Bjelke-Petersen legacy. Watch Online
The Moonlight State | 11 May 1987 – Chris Masters’ investigation into Queensland police corruption led to the Fitzgerald Inquiry, resulting in over 100 convictions and the police commissioner being jailed. Watch Online
“The Joke” was a system of protection involving illegal gambling, bookies, and brothels in QLD for more than a decade, probably decades
Updated June 12, 2017 14:19:00
It was Queensland, the year was 1987, and the State’s police force was riddled with corruption. The brotherhood of crooked cops who gave the green light to illegal gambling and prostitution believed they were untouchable.
“The level and systemic nature of it, reaching to all levels, including the highest political levels, was truly a shock to me.” Leading Criminal Investigator
There was a conspiracy of silence, from within the Queensland Government and all the way up to the highest levels of the force. The nature and the extent of the corruption sickened the honest cops, who operated in a world where they could trust no-one
Breaking the Brotherhood – Monday 12 June 2017
“‘Break his camera and break his mouth too!’ was the order.” Chris Masters, ‘The Moonlight State’ (1987)
It was Queensland, the year was 1987, and the State’s police force was riddled with corruption. The brotherhood of crooked cops who gave the green light to illegal gambling and prostitution believed they were untouchable.
“The level and systemic nature of it, reaching to all levels, including the highest political levels, was truly a shock to me.” Leading Criminal Investigator
There was a conspiracy of silence, from within the Queensland Government and all the way up to the highest levels of the force. The nature and the extent of the corruption sickened the honest cops, who operated in a world where they could trust no-one.
“There were times that I actually feared for my life and for the life of my family. It was clear to me that we had institutionalised corruption taking place.” Undercover Operative
A small band of brave crime fighters, and their families, took the enormous risk to trust a journalist with the State’s darkest secrets. The result was ‘The Moonlight State’, perhaps the most explosive true story ever told on Australian television.
“There is another side to the Sunshine State. Despite some wholesome attempts to pretend otherwise, the Queensland Government has not managed to stop the devil at the border. In the Sunshine State, sex is a great little earner.” Chris Masters, ‘The Moonlight State’ (1987)
Chris Masters’ landmark report prompted one of the most important anti-corruption investigations in Australian history, the Fitzgerald Inquiry, which led to the jailing of the Queensland Police Commissioner.
But the whole story of how the whistle was blown has never fully been told. Now the key players who put their trust in Chris Masters have come forward to tell their story, on camera, for the first time.
“I’m sitting there with my wife at home, because I knew when it was going to air, and I’m watching it. And I had this silly grin on my face, but it was also teary because we actually made it, we survived. The story got to air.” Whistleblower
“I believe that fate brought (us) together and that something had to be done.” Undercover Operative
The program also reveals the shocking lengths corrupt police went to, to try to silence the whistleblowers, and reporter Chris Masters.
“My son had been walking home from school and a car had pulled up beside him and told him that his father was going to be killed.” Undercover Police Officer
“Things got very scary, and a very powerful syndicate of organised criminals and corrupt police realised that they had an illicit empire to protect and they started to play nasty.” Chris Masters
Thirty years on from ‘The Moonlight State’, leading law enforcement figures warn that every police force today must remember the lessons of those dark days so they can never be repeated.
Breaking the Brotherhood, reported by Mark Willacy and presented by Sarah Ferguson, goes to air on Monday 12th June at 8.30pm EDT. It is replayed on Tuesday 13th June at 10.00am and Wednesday 14th at 11pm. It can also be seen on ABC NEWS channel on Saturday at 8.00pm AEST, ABC iview and at abc.net.au/4corners.
First posted June 12, 2017 13:43:00
Moonlight State: The honest cop who helped blow the whistle on Australia’s most corrupt police force – ABC News (Australian Broadcasting Corporation)
Moonlight State: The honest cop who helped blow the whistle on Australia’s most corrupt police force
To Mr Moore, babysitting a journalist was not part of his remit.
“I’ll be honest, I told [my assistant commissioner] I didn’t want to do the job,” he said.
But an order was an order.
It was 1987, and the AFP hierarchy had information that Masters was in danger.
He wasn’t at risk from the criminal underworld, but from the corrupt members of the Queensland police.
“It was made very clear that they were concerned for Chris’s safety,” said Mr Moore, speaking for the first time about the AFP’s secret role in protecting the Four Corners reporter.
“So we put the resources of the AFP, discreetly, behind keeping a lookout for Chris.”
‘We were being watched and shadowed’
Masters was getting too close to a brotherhood of bent cops and their network of graft and corruption, an arrangement known as “the Joke”.
What was the Joke?
The Joke was a vast system of graft and protection involving illegal gambling, starting price bookmakers, brothels and massage parlours that stretched back decades in Queensland.The dirty money flowed to the police, particularly to several senior members of the infamous Licensing Branch, who in exchange for regular cash payments turned a blind eye to vice.
In its later and most lucrative form, the Joke was administered by Jack Herbert, who, by the time it all came crashing down, was passing on nearly $60,000 a month in protection money to police.
Herbert was estimated to have received more than $3 million in payments.
In early 1987 The Courier-Mail ran a series of articles about unchallenged vice in Brisbane.
Then in May, The Moonlight State program was broadcast on Four Corners, revealing that police were being bribed to protect vice in Queensland.
The next day the acting premier Bill Gunn called a judicial inquiry.
The Fitzgerald Inquiry would run for two years and hear from more than 300 witnesses.
Evidence from the inquiry would lead to four government ministers and police commissioner Terry Lewis being jailed.
Other police would go to prison, while senior officers — including the assistant commissioner Graeme Parker — would give evidence in exchange for indemnity from prosecution.
The Fitzgerald Inquiry would also lead to the establishment of Queensland’s first anti-corruption body.
Stretching back several decades, the Joke was a system of protection payments that flowed from brothel owners, SP bookies and illegal gaming operators into the hands of corrupt police.
It was worth millions, and the Joke’s tentacles reached right to the top of the Queensland force.
In late 1986, early 1987, Masters had been sniffing around Brisbane’s red light district of Fortitude Valley for weeks talking to pimps, prostitutes and disgruntled police.
His inquiries were making the brotherhood nervous.
“We were being watched and shadowed,” Masters recalled.
“I didn’t really know that until Dave started to point out people who were surveilling me.”
Mr Moore says he first met Masters “up at the Tower Mill [Hotel]”.
“It became quite apparent to me that there was someone paying quite a lot of attention to Chris across the road,” he said.
“We later found out it was a hired vehicle which was being used by officers of the [Queensland] Police Force.”
As Masters got closer to cracking the Joke, the police brotherhood knew it had to destroy the Four Corners reporter before he destroyed them.
“They took him extremely seriously, to the point where they were on the brink of literally setting him up,” said Matthew Condon, the author of a three-book series on police corruption in Queensland.
“The plan was that they would plant an underage boy in Masters’ hotel room in the city and ultimately, whether they could prove it or not, the mud would have been thrown against Masters to discredit him.”
Masters would only be told of the plan to stitch him up many months later, after The Moonlight State had gone to air.
“I learnt of it through [former rugby league player] Tommy Raudonikis. He’d heard of it from a police mate and he then tipped off my brother Roy who told me,” Masters said.
“But when it was all supposed to happen I wasn’t in Brisbane, I was back in Sydney.”
The plan revealed the lengths the corrupt Queensland police brotherhood was prepared to go to protect the Joke.
It had flourished for years under the stewardship of a man known as “the Bagman”.
Jack Herbert was a former police Licensing Branch detective who for years was the conduit between the crooks and the cops.
He doled out hundreds of thousands in bribes to corrupt police.
Masters travelled the state speaking to and interviewing people about the Joke.
On May 11, 1987, The Moonlight State went to air on Four Corners.
“The pivotal thing about The Moonlight State and why it caused an earthquake was that for the first time, what Masters achieved, was a link between criminal figures, the underworld and corruption and police,” Condon said.
“That’s what caused so much drama and why it was an astonishing piece of television journalism.”
For Masters, the day after The Moonlight State would bring fresh drama.
“I wake up to the sounds of my own heartbeat,” he said.
“These are scary moments, sometimes the worst moments because you’ve done your best, you’re pretty much exhausted, but then a whole new battle begins.”
That battle would become the Fitzgerald Inquiry.
It would run for two years, hear from 339 witnesses and see the police commissioner, Sir Terence Lewis, jailed and stripped of his knighthood.
Also convicted were senior police and Valley kingpin, Gerry Bellino, who was sentenced to seven years in prison for paying bribes.
As for Jack “the Bagman” Herbert, he escaped jail by rolling over and telling all to the inquiry.
Watch Four Corners’ Breaking the Brotherhood at 8:30pm on ABC and iView.
The Moonlight State, the 1987 report that prompted the Fitzgerald Inquiry, can be viewed in full on the Four Corners website.
The Commission of Inquiry into Possible Illegal Activities and Associated Police Misconduct (the Fitzgerald Inquiry) (1987–1989) into Queensland Policecorruption was a judicial inquiry presided over by Tony FitzgeraldQC. The inquiry resulted in the deposition of a premier, two by-elections, the jailing of three former ministers and a police commissioner who was jailed and lost his knighthood. It also led indirectly to the end of the National Party of Australia‘s 32-year run as the governing political party in Queensland.
History
The inquiry was established in response to a series of articles on high-level police corruption in The Courier-Mail by reporter Phil Dickie, followed by a Four Corners television report, aired on 11 May 1987, entitled “The Moonlight State” with reporter Chris Masters. Both reports highlighted prostitution, gambling and possible police corruption.[1] With Queensland‘s Premier of 18 years, Sir Joh Bjelke-Petersen, out of the state, his deputy Bill Gunn ordered a commission of inquiry the day after the television report was broadcast.
The allegations aired in the media were not new; they had surfaced from time to time and some news organisations had been forced to pay damages to aggrieved people who alleged their reputations had been damaged (Bjelke-Petersen himself was notoriously litigious in response to unfavourable press coverage). Ian Callinan drafted the terms of reference for the inquiry as well as appearing before it.[2] While the terms of the inquiry were initially narrow, restricted only to the specific allegations raised against specific persons named in the media over a period of just five years, Fitzgerald used his moral authority to lever the inquiry into a position of being able to inquire into any relevant matter. The terms of reference for the Commission were extended twice.[1]
This enabled him to set a new precedent for commissions of inquiry and Royal Commissions in Australia generally, using innovative methods such as indemnities from prosecution for key witnesses to secure vital evidence. The inquiry was initially expected to last about six weeks; it instead spent almost two years conducting a comprehensive investigation of long-term, systemic political corruption and abuse of power in Queensland. Public sittings were held on 238 days, hearing testimony from 339 witnesses.[1]
On 28 August, a Licensing Branch sergeant, Harry Burgess implicated Jack Herbert, and assistant commissioner Graeme Parker. Parker confessed and implicated police commissioner Sir Terry Lewis on 16 September.[3]
The inquiry would eventually outlive the Bjelke-Petersen government. Mike Ahern became the new Premier after Bjelke-Petersen was deposed by his own party.[4] Evidence revealed by the investigation (including testimony from Bjelke-Petersen himself) caused significant political damage and an internal power struggle within the National Party, resulting in Bjelke-Petersen resigning as Premier after his unsuccessful attempt to have the Governor of Queensland sack all of his ministers after they deposed him as party leader.
The inquiry’s special prosecutor was Doug Drummond QC. It was Drummond who decided not to retry Bjelke-Petersen after the hung jury.
Findings
Fitzgerald’s report was submitted on 3 July 1989.[1] Based on the inquiry’s final report,[5] a number of high-profile politicians were charged with crimes; notably Queensland Police Commissioner (Sir) Terry Lewis was charged with corruption.
Bjelke-Petersen himself was charged with perjury in respect of evidence given to the inquiry. The jury in the case remained deadlocked, bringing about a mistrial.[6] In 1992 it was revealed that the jury foreman, Luke Shaw, was a member of the Young Nationals, was identified with the “Friends of Joh” movement and had misrepresented the state of deliberations to the judge. According to an ABC TV analysis, “A later inquiry conducted by Justice Bill Carter found the selection process had been manipulated by …ex-police officers …helping to put Joh before a jury led by Young Nationals member, Luke Shaw.”[7] A special prosecutor announced in 1992 there would be no retrial because Sir Joh, then aged 81, was too old.
Jack Herbert had been the bagman, collecting bribes for police commissioner Terry Lewis from 1980. Lewis himself had been a bagman for former commissioner Francis Bischof.[3] Lewis was convicted (and subsequently stripped of his knighthood).
Leisha Harvey former health minister, was charged with misappropriating of public funds as part of an investigation resulting from the findings of the inquiry. She spent one year in jail.[4]Don Lane, former transport minister, was sentenced to twelve months imprisonment for falsifying expense accounts.[4] Lane’s resignation resulted in the 1989 Merthyr state by-election. Brian Austin, another former health minister, was convicted of misappropriating public funds. Hinze’s resignation led to the 1988 South Coast state by-election.
The Queensland Police Special Bureau was formed on 30 July 1940 and renamed Special Branch on 7 April 1948. It was criticised for being used for political purposes by the Bjelke-Petersen government in the 1970s and 1980s, such as enforcing laws against protests (sometimes outnumbering the protesters or using provocateurs to incite violence so the protesters could be arrested[8]) and investigating and harassing political opponents.[9] It was disbanded in 1989 following a recommendation by the Fitzgerald Inquiry.[9] Special Branch destroyed its records before Fitzgerald could subpoena them.[9]
In large part due to public anger over the revelations in the Fitzgerald report, the National Party was heavily defeated in the December 1989 state election, which brought the Australian Labor Party to power for the first time since 1957.
Recommendations
The two most significant recommendations were the establishment of the Criminal Justice Commission (CJC) and the Electoral and Administrative Review Commission which was to review electoral boundaries.[1] The need for Freedom of Information legislation in the state was noted, as was the need to review laws relating to public assembly and guidelines for the disclosure of pecuniary interests of parliamentarians. The CJC was to be responsible for investigating specific individuals mentioned during the inquiry.
The police culture of the state was also criticised. Aspects such as loyalty to fellow police officers, police not enforcing laws against other police and criticism of other police being impermissible[clarification needed] were condemned because they led to misconduct, inefficiency and contempt for the justice system.[1] Many of the inquiry’s recommendations were implemented by Wayne Goss, the first Labor Party Premier of Queensland in 32 years.
Cultural depictions
Bjelke-Petersen’s trial was later the subject of a TV movie, “Joh’s Jury“.[10]
Margot Hutcheson painted a picture of the inquiry, Wasn’t the Fitzgerald Inquiry Fun?[11]
In 2009 as part of the Q150 celebrations, the Fitzgerald Inquiry was announced as one of the Q150 Icons of Queensland for its role as a “Defining Moment”.[12]
Commission of Inquiry into Possible Illegal Activities and Associated Police Misconduct, “Fitzgerald Inquiry report”, Government Printer, Brisbane, 1989.
Further reading
Jack Herbert with Tom Gilling, The Bagman: Final Confessions of Jack Herbert, ABC Books 2004, ISBN0-7333-1412-0
FOR more than three decades, Queensland Police simply called it “The Joke”.
And for the crooked cops who were in on it, along with a cavalcade of pimps, gamblers, prostitutes, drug dealers and politicians, being part of the punchline was lucrative business.
When The Courier-Mail finally exposed the system of corrupt payments with the landmark reporting of journalist Phil Dickie in 1987, it was clear the operation had penetrated the highest echelons and darkest recesses of life in the Sunshine State.
Police Commissioner Terry Lewis and other corrupt officers were caught taking bribes from a pool fed by bookies and brothel owners, such as Geraldo Bellino.
Vic Conte
The main beneficiaries were the police. Courier-Mail journalist Matt Condon, who has written a best-selling trilogy about that era, wrote The Joke was an “elaborate, multi-million dollar scheme of kickbacks from illegal gambling, SP bookmakers, brothels and escort services”.
At its zenith in the mid- 1980s, the system’s meticulous bookkeeper Jack “the Bagman” Herbert was raking in so much cash he was running out of places to store it in his luxury, riverfront apartment at East Brisbane.
By 1987, he was channelling about $56,000 a month to police to protect SP bookmakers, casino and brothel operators from any serious law enforcement.
By then, the system was brazenly operating in the open, secure in its institutional hold on the police force and protection from the National Party government of then premier Joh Bjelke-Petersen.
Bagman Jack Herbert
Detective Sergeant Tony Murphy
Dickie’s investigative skills eventually shattered The Joke’s sense of impunity as he exposed the chain of money flowing to the police’s notorious Licensing Branch.
Reports in The Courier-Mail and an expose by ABC journalist Chris Masters on Four Corners led to the Fitzgerald inquiry, which finally finished The Joke in 1989 as three government ministers and police commissioner Terry Lewis were jailed.
In the final instalment of his trilogy, All Fall Down, Condon details a 1984 document written by serving police that provided forensic insight into The Joke’s structure, operation, breadth and membership.
It traced the system back to the 1950s, when the force was riven by factional fighting between Irish Catholics and the Masons.
The Joke then flourished under Frank Bischoff, who was commissioner from 1958 to 1969. Bischoff initiated Lewis, who was a young detective at the time, into the system and groomed him as a future successor.
Police Commissioner Frank Bischoff.
Notorious poker machine king, businessman and yachtsman Jack Rooklyn.
Lewis readily accepted his new duties, becoming one of the notorious Rat Pack, which included Herbert and detectives Tony Murphy and Glen Hallahan.
Murphy, who later rose to be assistant commissioner, allegedly coined the term The Joke and ensured that the Rat Pack controlled its operations. He was known as The Godfather.
The rest of The Joke operated as a series of autonomous cells led by an officer known as a “control”. Controls answered to another control on the level above them but would not deal with any other person, insulating the Rat Pack from being exposed. Citing the document, which was sent to then opposition police spokesman Kevin Hooper, Condon said the Rat Pack used police resources to corrupt politicians, government departments and leaders of industry.
“Illegal tapping of phones and use of sophisticated electronic surveillance gear, control of illegal gambling, prostitution at all levels and the keeping of comprehensive files on citizens of prominence are all ways in which this group of men are able to get appointed to high rank in the department,” the document said.
“There is not a level of society that these men do not have contacts and informants who work for them either through fear of exposure or for monetary gain.”
More to follow with news a senior journo Steve Barrett being allegedly involved with a blackmail plot with a member of the conspiracy Daniel Rostankovski who was allegedly aggrieved he was not getting his fair share…See down for more details
ATO deputy allegedly sought to seek a deal for son in $165 m tax fraud,,, Mr Cranston has been issued a future court attendance notice for the charge of abusing his position as a public official. He is due to appear in Sydney’s Central Local Court on June 13.
His son, Adam Cranston, 30, and his daughter, Lauren Anne Cranston, 24, have also been charged following an eight-month investigation, codenamed Operation Elbrus.
It’s alleged ATO deputyMichael Cranston accessed restricted information on an ATO audit for his son, but police do not believe he knew about his son’s alleged fraud syndicate.
Australian Federal Police Deputy Commissioner Leanne Close said the syndicate appeared to use the money to fund a “lavish lifestyle”.
Among the items seized under proceeds of crime were 25 motor vehicles, including luxury cars and racing cars, 12 motorbikes, 18 residential properties, two aircraft, $1 million from a safe deposit box, firearms, jewellery, bottles of Grange wine and artworks.
ATO Second Commissioner Andrew Mills said two other ATO officers were also being investigated internally for a potential code of conduct breaches. It’s believed they tried to look up information on the ATO’s audit at the behest of Michael Cranston….Robbo
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Police will allege the group had a lavish lifestyle and diverted taxpayer funds to buy planes, sports cars, jewellery, property, artwork and fine wines.
As part of the operation, officers have seized:
25 motor vehicles
$15 million in bank accounts
18 residential properties
12 motorbikes
Two aircraft
Firearms
Jewellery
Artwork
Vintage wines
$1 million in a safe deposit box
Acting AFP deputy operations commissioner Leanne Close said the ATO got involved in the investigation when alleged evidence of fraud mounted.
Adam Cranston leaves the Sydney Police Centre in Surry Hills after receiving bail AAP-Paul Miller
Adam Cranstons racing car-wedding car about to be confiscated
A light aircraft seized by police as part of their investigation. AFP
Adam Cranston has been charged with conspiracy to defraud the Commonwealth.
$1 million cash was seized from a safe deposit box by the AFP in yesterday’s raid.
Veteran Sydney journalist Steve Barrett allegedly blackmailed tax syndicate
By Rachel Olding
A veteran Sydney journalist allegedly blackmailed members of a $165 million tax fraud syndicate after conspirators in the group had a falling out, it can be revealed.
Explosive documents tendered in Central Local Court on Thursday state that well-known television journalist and former crime reporter Steve Barrett allegedly blackmailed two members of the syndicate during a meeting at the offices of Clamenz Lawyers on February 1st 2017
Eight people were arrested on Thursday over the alleged tax fraud syndicate including Adam and Laura Cranston, the son and daughter of Australian Taxation Office Deputy Commissioner Michael Cranston.
Michael Cranston has also been issued a future court attendance notice for a charge of abusing his position as a public official.
The police documents reveal that one syndicate member, Daniel Rostankovski, turned on other conspirators and allegedly tried to extort money from them.
At the February 1 meeting, Mr Rostankovski and Mr Barrett allegedly threatened to expose the conspiracy in the media if money wasn’t handed over.
“Police allege … Rostankovski and Barrett attempted to blackmail the co-conspirators in relation to their involvement in the conspiracy,” the police documents state.
Mr Rostankovski allegedly demanded $5 million or Mr Barrett would expose the group in the media.
Mr Rostankovski felt like he had been deceived by the group as other members were receiving more money than him.
The group allegedly agreed to their demands if he didn’t go to the media, the police or the ATO. An agreement was signed that outlined such undertakings, the police documents reveal.
Mr Rostankovski, a 28-year-old from Waterloo, was granted strict bail in Central Local Court on Thursday. Mr Barrett has not been charged. He did not return Fairfax Media’s calls on Thursday.
Barrett, who previously worked for 60 Minutes, was a long-time employee as a producer in the Channel 7 newsroom but left the network in March 2016, before the alleged blackmail took place.
Australian Federal Police Deputy Commissioner Leanne Close said the syndicate appeared to use the money to fund a “lavish lifestyle”.
Among the items seized under proceeds of crime were 25 motor vehicles, including luxury cars and racing cars, 12 motorbikes, 18 residential properties, two aircraft, $1 million from a safe deposit box, firearms, jewellery, bottles of Grange wine and artworks.
ATO Second Commissioner Andrew Mills said two other ATO officers were also being investigated internally for potential code of conduct breaches. It’s believed they tried to look up information on the ATO’s audit at the behest of Michael Cranston.
The announcement came after nearly 300 police officers on Wednesday carried out raids across Sydney, Wollongong and the Southern Highlands, arresting nine people.
Among those who appeared in court on Thursday are Mr Rostankovski, 28, from Waterloo; Jason Cornell Onley, 47, from Vaucluse; Daniel Hausman, 47, from Woollahra; Christopher James Guillan, 46, from Sutherland; Dev Menon, 33, from Wahroonga and Devyn Hammon, 24, from Balgownie.
Police will allege in court that the syndicate members ran a legitimate payroll company, Plutus Payroll, and accepted money from legitimate clients to process payroll on their behalf.
“This money was transferred to seven sub-contracted companies known as Tier 2 companies, which then made payroll payments to individual workers or clients,” the federal police said in a statement.
Tax office investigators, who helped the federal police during the investigation, estimate the amount of tax obligations not paid to the tax office to be $165 million.
Mr Mills described Michael Cranston as one of the organisation’s “long-serving senior officers” who had “quite an illustrious [career] up until this point”.
Mr Mills said he was confident the tax office’s systems had not been compromised nor breached and the accused employees were not able to obtain any information.
“The investigation has so far not revealed any evidence of actual intervention or influence on audit cases, or of money being refunded, or of tax liability being changed,” Mr Mills said.
“The information I have to date shows no compromise of the operations of our administration. Our systems, controls and procedures worked effectively and we have been able to successfully isolate and protect the investigation, working well with the Australian Federal Police over many months to build a picture of what has been happening.”
Prime Minister Malcolm Turnbull congratulated the federal police for the investigation and “taking the action that they have”.
ATO Deputy Commissioner Michael Cranston allegedly sought to cut deal for son Adam Cranston
By Nick McKenzie
Deputy ATO commissioner to be charged
In connection with an alleged $165 million tax fraud syndicate, the Australian Taxation Office Deputy Commissioner Michael Cranston will be charged.
Deputy Commissioner of the Australian Tax Office Michael Cranston allegedly sought to pressure colleagues to cut a deal with his son after learning he was the subject of a major tax fraud investigation, sources said.
Mr Cranston learnt of the investigation after his son, Adam Cranston, approached him and told his father that he believed his company was the subject of an ongoing inquiry.
Michael Cranston. Photo: Rob Homer
Michael Cranston allegedly subsequently approached a Tax Office assistant commissioner and raised the prospect that his son’s company was being targeted.
Michael Cranston allegedly simultaneously sought to downplay his son’s involvement in the alleged criminal scheme.
Two high-ranking Tax Office officials who spoke to Michael Cranston about the inquiry into his son have also been stood down, pending further investigation.
It is understood that Michael Cranston allegedly inquired as to whether a deal could be struck to resolve any probe.
The Tax Office sometimes resolves matters by agreeing to receive a payment from those accused of tax fraud.
Michael Cranston also allegedly sought to reach out to investigators involved in the multi-agency investigation but was unable to do so because the Australian Federal Police had warned them that such an approach might be likely.
One of nine people being arrested over a $165 million tax fraud investigation. Photo: AAP/Australian Federal Police
Adam Cranston was allegedly involved in the unlawful tax fraud scheme from the middle of 2016.
The scheme, which allowed the accused to make tens of millions of dollars in allegedly illegal profits, was started much earlier by another of the accused.
Police seized $1 million from a safe deposit box during Wednesday’s raids. Photo: Australian Federal Police
Adam Cranston allegedly displayed unexplained wealth, including a collection of prestige cars.
But Michael Cranston is suspected to have been unaware that his son was the subject of the probe until Adam approached him.
Tax tsar’s son charged over alleged scam that netted $165 million
EXCLUSIVE Nick Hansen, The Daily Telegraph
UPDATE:Michael Cranston, the deputy commissioner of the Australia Taxation office, has been charged with abusing his position as a public official.
It comes after his son Adam was charged over his role in a $165 million tax scam.
The Daily Telegraph today revealed Cranston’s son, Adam was charged over his alleged role in a fraud syndicate that police claim stole more than $165 million — one of the biggest white-collar crimes in Australia’s history.
The Daily Telegraph can reveal Australian Federal Police yesterday arrested Adam Cranston at his Bondi flat in one of 27 raids on homes and businesses across Sydney.
Adam Cranston, son of ATO boss Michael Cranston, is arrested at his Bondi flat yesterday over his role a $165 million fraud syndicate. Picture: Police Media
Cranston was charged last night with conspiracy to defraud the commonwealth and is expected to face Central Local Court today.
It’s understood eight others were arrested and facing possible charges.
The 30-year-old Cranston is the son of ATO deputy commissioner Michael Cranston, but there is no suggestion Michael Cranston had any involvement in or knowledge of the criminal syndicate.
Adam Cranston on his wedding day to wife Elizabeth. There is no suggestion Elizabeth was involved in the alleged scam. Picture: Facebook
Sources close to the investigation claim Adam was a “co-conspirator” in a group that used an elaborate tax scam to fund a celebrity lifestyle that included prime Sydney real estate, boats — and even a racing car team.
“This investigation has uncovered high-level organised activity; it is complex (and) sophisticated,” the source last night told The Daily Telegraph.
Adam Cranston marries wife Elizabeth. There is no suggestion Elizabeth was involved in the alleged scam.
“I think it will take the police a long time to figure out exactly how much money (is involved).”
It is believed police will allege the fraud is one of the largest ever seen in Australia.
Investigators allege Sydney financial services firm SYNEP, of which Adam is co-chairman and managing director, was part of the operation.
ATO Deputy Commissioner Michael CranstonAdam Cranston is escorted from the scene at Bondi yesterday. Picture: Police Media.
Payroll contractor Plutus Payroll, controlled by SYNEP, was the centrepiece of the alleged hustle.
Police will claim it would allegedly funnel wage payments through a series of “second tier” companies. who then paid the ATO only a fraction of the required income tax.
The remaining withheld tax would then allegedly flow into the pockets of syndicate operators.
The scammers believed they had struck a sweet spot where each individual fraud was too small to prompt action from the ATO.
One source said it was “like saying to your schoolteacher, ‘I’ve done most of my homework, I’ll bring the rest next week’.”
The net tightened when both the AFP and ATO noticed alleged discrepancies in parallel investigations.
Police escort Adam Cranston from the scene yesterday. Picture: Police Media
The sum of the frauds is understood to be more than $165 million, with the extent of Cranston’s own alleged profits expected to be revealed in court.
Investigators said their probe focused on a 12-month snapshot of the group’s alleged activities.
Sources also allege the scheme had another sinister angle.
How the scam was carried out
Police will claim the syndicate would pay struggling people a regular fee so they could set up the second tier companies in their names. However, the syndicate had total control of the companies.
Plutus Payroll hit the headlines earlier this month when the ATO froze its bank accounts over unpaid tax debts, meaning its clients’ staff could not be paid.
Police examine a vehicle at Adam Cranston’s Bondi flat yesterday. Picture: Police Media
In a statement earlier this month, Plutus apologised to its customers “continuing distress caused by our inability to process your pay since 27 April”.
“Our dispute is with the Australian Taxation Office who believe that Plutus owes the ATO money,” the statement said.
“Acting in a draconian and unfair manner, the ATO froze Plutus’ bank accounts on 27 April without prior warning or any consultation.
“We received no notice of intention to audit, no complaint and no other advance warning of noncompliance from the ATO.
“When the ATO acted, without notice, they froze our bank accounts and we became unable to pay our contractors the money owed to them.”
On May 10, the company announced the ATO had allowed the release of the money.
With more than 35 years at ATO, Michael Cranston has spearheaded many public campaigns to catch tax cheats.
“I am responsible for increasing compliance and willing participation in our tax and super system,” one of his social media accounts states.
“I recently chaired the OECD Task Force on Tax Crimes.”
The ATO last night refused to comment on the investigation.
And Michael Cranston did not respond to questions put to him through the ATO.
The ATO said it “will not comment on ongoing investigations at this time”.
“Due to privacy considerations the ATO is unable to comment on individual employees,” it said.
A CASE OF LIVE FAST AND FRY YOUNG
POLICE claim assets linked to an alleged $165 million tax fraud case include sports cars, expensive properties, boats and even a race team.
Cars were a particular passion for one of the alleged “co-conspirators” of the crime. Adam Cranston loved them so much there’s even a wedding day photo of the now 30-year-old with his wife and a slick race car.
There is no suggestion Cranston’s wife had any knowledge of or involvement in the alleged fraud.
A source said that among the property seized by police is an orange and blue Ford GT in Cranston’s possession.
Cranston started a race car team last year. And he named it after the financial services firm now at the centre of the alleged crime, SYNEP. The team competed in the Australian Prototype Series and in February celebrated a podium finish at Mount Panorama.
ATO official Michael Cranston facing charges over son’s alleged 65m fraud – ABC News (Australian Broadcasting Corporation)
ATO official Michael Cranston facing charges over son’s alleged $165m fraud
One of Australia’s most senior tax officials has been embroiled in a major fraud investigation following the arrest of his son, which allegedly involved $165 million being stolen from the Commonwealth.
Deputy tax commissioner Michael Cranston has been issued with a court attendance notice, while his son, Adam Cranston, was arrested in Sydney yesterday as part of an Australian Federal Police sting.
Michael Cranston will be charged with abusing his position as a public official relating to the fraud, although he is not believed to be a conspirator.
Adam Cranston, 30, was arrested at his flat in the affluent beach suburb of Bondi during raids yesterday and has been charged with conspiracy to defraud the Commonwealth.
At a press conference in Sydney today, officials said Michael Cranston could have been unwittingly involved in his son’s alleged crimes.
In all, nine people were arrested in Sydney yesterday as the AFP carried out 28 raids.
At a press conference today, the AFP alleged the group used “lavish lifestyles” to help hide the funds, including 25 motor vehicles, $15 million in cash, 18 residential properties and two aircraft.
Adam Cranston will face Central Local Court in Sydney later today.
Federal Treasurer Scott Morrison said the arrests served as a warning.
“This is a major government crackdown and what the events today with this major fraud bust … demonstrates is that if you are a crook and you are seeking to defraud the taxpayer, we will find you,” he said.
“We will track you down. We will make sure you are brought to justice.”
The ABC understands Michael Cranston has been employed by the ATO for more than three decades and is involved in the organisation’s private groups and high wealth segment.
Part of his biography on his LinkedIn account reads: “My personal philosophy is that the tax system belongs to all Australians and we all need to work closely together to ensure that it is administered fairly, efficiently and causes the least pain for all that participate.”
Go figure this one. A pathetic sentence that gives no adverse heat on the size of the crime. Let’s all steal from people that trust us, that legal system does nothing anyway. Check this one out and tell me your thoughts folks!… Cheers Robbo
Property manager Mark Kolodynski stole rental bonds for his TAB account
A Sydney real estate agent who embezzled hundreds of thousands of dollars from renters’ bonds and trust accounts to make bets on sports has been jailed for 18 months.
The door closed on Tuesday for 29-year-old Panania property manager Mark Kolodynski to appeal against an 18-month jail sentence for stealing $370,000 from trust accounts of two real estate agents.
Mark Kolodynski (pictured in fancy dress) pleaded guilty. Photo: Supplied
Details released by the state government show the former property manager systemically and unlawfully withdrew money for his own purposes from trust accounts held by real estate agents Northern Strata Management Services and Bevans Wollongong for customers.
A NSW Fair Trading investigation followed a trail of money that ultimately led to Kolodynski’s personal gambling account at the TAB.
“If you choose to do the wrong thing, Fair Trading will come after you, and you will be prosecuted,” said the NSW Better Regulation Minister Matt Kean. “This result reflects the hard work of Fair Trading’s investigators.”
Kolodynski created fictitious expenses to justify his withdrawal of money from strata accounts. He also funnelled money held in rental bonds and deposits while working as a property manager.
Kolodynski was ordered to repay $100,000 each to the agencies from which he embezzled funds.
The real estate companies were forced to repay the trust accounts at their own expense.
Kolodynski pleaded guilty to stealing property as a clerk or servant and Magistrate Tim Keady sentenced him to a minimum non-parole period of 12 months on March 30.
His real estate qualifications had expired but he will be banned from holding any real estate credentials for 10 years. Friggin life might be better, how would a new young couple have any idea they are trusting their life savings into this thief’s hands??? Seriously…Robbo
Former Property Manager Mark Kolodynski has been jailed for 18-months for stealing $370,000 from trust accounts of two real estate agents. An investigation by NSW Department of Fair Trading found the trail of money led to his personal TAB account. “If you choose to do the wrong thing, Fair Trading will come after you, and you will be prosecuted,” said the NSW Better Regulation Minister Matt Kean. “This results reflects the hard work of Fair Trading’s investigators.”
Man secretly filmed more than 200 people in Sydney public toilets, court told
A man secretly filmed more than 200 people, including a girl and boy, in Sydney public toilets for his own “sexual gratification,” a court has been told.
Benjamin Moorhouse allegedly placed secret cameras under the sink of toilets at Parramatta and North Sydney train stations, and at a disabled toilet at Westfield Parramatta shopping centre, in February and March.
Man secretly filmed in public toilets
Benjamin Moorhouse allegedly placed secret cameras under the sink of Sydney toilets and filmed more than 200 people.
The 40-year-old, who was arrested on March 22, appeared at Parramatta Local Court on Wednesday, where his lawyer indicated he would plead guilty to all charges.
Moorhouse is charged with five counts of filming a person in a private act for the purpose of “sexual arousal or sexual gratification”.
Benjamin Moorhouse allegedly placed secret cameras under the sink of toilets at Parramatta and North Sydney train stations Photo: NSW Police
Two of those charges are aggravated because the alleged victims, a boy and a girl, were under 16.
Moorhouse is also charged with three counts of installing a device to film people without consent.
It is further alleged Moorhouse “engaged in a private act” without the consent of the victims.
The 40-year-old, who was dressed in a suit when he appeared before a magistrate on Wednesday, later ran from the court complex wearing a hooded jumper, jeans and sunglasses.
One of the devices police allege was used for the filming Photo: NSW Police
Police say they found Moorhouse with a camera similar to those uncovered at the stations when they arrested him outside his Parramatta home a month ago.
Almost 100 people were filmed at a Parramatta train station toilet between February 13 and 14, while another 23 were filmed on the morning of February 10 in a toilet at North Sydney station, according to court documents.
The cameras were found by train staff.
About 100 people were also allegedly filmed in a Westfield Parramatta disabled toilet between March 17 and 20.
Moorhouse’s bail was continued until his next court appearance on May 31.
The man accused of killing six people and injuring dozens of pedestrians during a driving rampage through Melbourne’s CBD has told a court he is “the saviour”.
For the first time since he allegedly drove his car through the Bourke Street mall in January, Dimitrious Gargasoulas appeared in the Melbourne Magistrates’ Court via video-link on unrelated charges.
The 26-year-old’s lawyer had previously told the court that he had been too ill to attend.
Dressed in a black jumper and white t-shirt, Gargasoulas smiled during the brief hearing and interjected on several occasions.
He said, “Your Honour, I wanted to tell you something”, and later spoke about the Bible and the Koran, yelling, “Aboriginal law is identical to Muslim law”.
His lawyer spoke over the top of him, warning him that members of the media were in court.
Gargasoulas then said: “All the law is illegal.”
Later, he said: “Your Honour, did you know the Muslim faith is the correct faith according to the whole world? And I am not guilty.”
Before his video-link was switched off, he called out: “I am the saviour.”
Gargasoulas faces charges for theft and other offences allegedly committed in early January and late last year, including driving on the wrong side of the road to evade police in St Kilda.
The matter has been adjourned until May.
Gargasoulas is also due to reappear in court in December, for a separate hearing in relation to six charges of murder, 28 of attempted murder and conduct endangering life following the Bourke Street tragedy in January.
2017 Melbourne car attack
Police arrest the alleged perpetrator at 555 Bourke St
On 20 January 2017, around 1:30 pm AEDT, a car was driven into pedestrians in the CBD of Melbourne, Australia. Six people were killed and at least thirty others wounded, three of whom sustained critical injuries.[2][3] Police have alleged that the victims were intentionally hit, and have charged the driver of the vehicle, Dimitrious Gargasoulas, with six counts of murder.[4]
Background
The red Holden Commodore car used in the attack was stolen from a man who lives in the same block of flats as Gargasoulas. Upon being interviewed, the car owner alleged that on the night of 18 January 2017, Gargasoulas entered his flat with a bible, sat down, started burning it and threw it into his face. After this, he said that he flicked it on the floor and was then punched by Gargasoulas.[5]
It is alleged that Gargasoulas stabbed his brother in a flat in Windsor in the early hours of 20 January 2017, leaving the brother in critical condition.[5] He then took his pregnant girlfriend hostage; she was later released on the Bolte Bridge.[6]
Attack
There are videos of the man driving and behaving erratically at the intersection of Flinders Street, St Kilda Road and Swanston Street, outside the entrance of Flinders Street railway station. Two men, year 12 student Tevita Mahina and his cousin Isaac Tupou attempted to stop him, hitting the windscreen with a baseball bat. The driver continued north-bound up Swanston St western-side footpath at speed towards the Bourke Street Mall, turned left onto Bourke Street southern-side footpath and struck more than 20 pedestrians. The car was brought to a halt and the driver was shot in the arm by a police critical incident response team and arrested in front of 555 Bourke Street.[7] A child and two adults died at the scene,[8] while another man died in hospital before the end of the day, and a three-month-old baby boy the evening after the attack.[9] A sixth person died on 30 January.[10]
Victims
Floral tributes to victims of the attack at a memorial at the Western end of the Bourke Street Mall.
Among the victims was a 10-year-old girl, who died on 20 January,[11] as well as a three-month-old baby boy who died on 21 January. The others were a 25-year-old man, a 22-year-old woman, a 33-year-old man, and a 33-year-old woman.[12][13][10]
A memorial for the victims was held in Federation Square on 23 January,[14] and floral tributes were left by members of the public at nine locations along the Bourke Street Mall.[15] On 30 January it was announced that a permanent memorial garden would be established, and that donations approaching AU$1,000,000 had been made to the Bourke Street Fund for the families of the victims.[16] On 31 January, the inorganic tributes were removed from the mall for storage by the Melbourne City Council, and the floral tributes taken for composting for the Victims of Crime memorial near State Parliament.[17]
In the days before the attack, Gargasoulas began to post messages on Facebook about “religion, God, Satan, heaven and hell”, which writers for The Age described as “rambling and often nonsensical”.[5] According to the Daily Express and Greece based TornosNews.gr, the perpetrator is a Greek–Tongan Australian.
Gargasoulas’ father told Seven News “he’s not the Jimmy I used to know” and he would “scratch his son off his books”, while his mother told News.com.au she is ashamed to be his mum, and she wanted her son to “die in hell”.[21]
Police reported that the perpetrator was “not on our books as having any connection with terrorism … He has been coming to our attention more recently, over recent days, in relation to assaults, family violence related assaults”.[19] The perpetrator had allegedly stabbed his younger brother for being gay.[22]
According to an eyewitness, Gargasoulas repeatedly shouted “Allahu Akbar”, often linked to Islamic terrorism. Police later asked Melbourne Herald Sun reporter Andrea Hanblin to remove her video interview of the eyewitness who made these claims.[23][24]
Timeline of events
14 January 2017
Police charge Gargasoulas at Prahran police station with speeding on the wrong side of the road and ignoring a police direction to stop. Police oppose bail, but Gargasoulas is granted bail for a 20 January court date.[25]
18 January 2017
Gargasoulas attacks Gavin Wilson, his mother’s ex-partner, by thrusting a burning Bible in his face and stealing his car.[26]
19 January 2017
9:26 pm: Gargasoulas ‘checks in’ at Dogs Bar, St Kilda, on Facebook, posting: “Thinking. About what to do with them lol.”[27]
10:00 pm: Gargasoulas is refused entry to Dogs Bar as he is suspected to be under the influence.
20 January 2017
12:30 am: Gargasoulas returns to Dogs Bar, in a maroon-coloured car believed to be the same car he stole from Wilson, later to be used in the attack. Patrons report that he smashes glasses and plates.[27]
2:15 am: Police are called to an address in Raleigh Street, Windsor, after reports are lodged of two men fighting. Both victim and Gargasoulas are gone by the time police arrive.
8.04 am: Gargasoulas is spotted driving in the background of a Today “live cross” which is reporting on the Windsor stabbing. The man rolls down the car window and waves his hat at the news camera.[28]
11:30 am: Police follow the car along tram tracks in Clarendon Street in South Melbourne and unsuccessfully attempt to arrest Gargasoulas at a South Wharf intersection.
11:45 am: Police spot the car weaving through traffic on Williamstown Road in Yarraville, west of Melbourne. Police pull back due to safety concerns as the car is being driven “erratically and dangerously.” The police air wing tracks the car as it moves toward the city.[29]
1:35 pm: The car then allegedly struck a number of pedestrians in the vicinity of Bourke Street Mall, before proceeding further along Bourke Street, past intersection with Queen Street.
1:37 pm: Reports of multiple shots fired, Gargasoulas is pulled from the car on William Street.
2:30 pm: Ambulance Victoria state that they are treating 20 people in Bourke Street, many of them sustaining serious injuries.
2:30 pm: Victoria Police release a statement confirming that the situation has been “contained”, one person has been arrested and another dead.
3:20 pm: Police confirm at a press conference that three people have died and the incident was not terrorism-related.
9:00 pm: Police confirm that a fourth person had died in hospital.
21 January 2017
10:53 pm: Police confirm that a fifth person (a three-month-old child) had died in hospital. [31]
23 January 2017
Gargasoulas is excused from court by the magistrate, claiming that he is feeling unwell. He is charged with five counts of murder.[32]
30 January 2017
Police confirm a 33 year old woman has died in hospital due to her injuries. This raises the death toll to 6.
Responses
The Royal Children’s Hospital treated many children injured in the attack
Police urged the public to share their testimonies and collaborated with over 300 witnesses.[33] Graham Ashton, Victoria Police Chief Commissioner, was quick to dismiss claims the attack was an act of terror, but supposed it instead a consequence of an alleged stabbing which had developed into a crime spree. Victoria Police maintain religion was not a significant motivation.[34] In an interview the day after the attack, Andrew Crisp, Deputy Police Commissioner, stated that police were hoping to interview and charge the suspect later in the day. He said that the fact that the suspect had been out on bail would be looked into by police. He congratulated everyone who dealt with the situation, stating “We saw the best of people yesterday. The support they gave to people on the street, it was amazing.”[35]
Victorian PremierDaniel Andrews stated that “this was a terrible crime – a senseless, evil act” and promised that “justice will be done”.[37] Then the Victorian Government established a fund to provide financial assistance for the families of the deceased, and made an initial donation of $100,000.[38]
A former NRL player and a Bondi businessman have been linked to a drug ring after New South Wales Police recorded the biggest cocaine haul in Australia’s history.
Key points:
1.1 tonnes of cocaine worth $360 million seized by AFP and NSW police
Two seizures of cocaine make the biggest haul of the drug in Australian history
15 men arrested including a former NRL player and a Bondi businessman
The joint strike force between Australian Federal Police and the New South Wales Police drug squad arrested 15 men and seized about $360 million worth of cocaine.
Former Roosters player John Tobin is one of the accused smugglers, along with Bondi businessman Darren Mohr.
The criminal syndicate was allegedly using a trawler based at the Sydney Fish Market to meet a “mother ship” from South America to bring drugs into the country.
About 500 kilograms of the drug was seized on Christmas Day at Brooklyn on the central coast of New South Wales.
Police allege 600 kilograms was seized in Tahiti and 32 kilograms of heroin was found in Fiji with both loads destined for the market in Australia.
Acting Assistant Commissioner, Chris Sheehan, said the police operation had been running for almost three years and escalated with the arrests over the Christmas period.
“The criminal syndicate we have dismantled over the last few days was a robust, resilient and determined syndicate,” he said.
“This is the largest cocaine seizure we have had in Australia.
“It posed an ongoing and continued threat to the Australian community and without the work of our police, would still be in action today.”
Tip-off from community led to bust
Assistant Police Commissioner, Mark Jenkins said a member of the community gave them a tip-off two and a half years ago that led to the cocaine haul.
“As a result, over one tonne of drugs has been prevented from reaching the streets of New South Wales and harming the community,” he said.
“That small piece of information has resulted in 15 arrests and a large seizure of drugs.”
Media player: “Space” to play, “M” to mute, “left” and “right” to seek.
Officers allege the group of men, aged from 29 to 63, are involved in the Australian criminal syndicate responsible for the attempted imports.
They have been charged with serious drug importation offences and eleven of the 15 men have appeared before Parramatta Local Court and were refused bail.
A 49-year-old man and a 63-year-old man are due to appear before Central Local Court today.
Two other men, a 33-year-old and 39-year-old are also expected to front Nowra Local Court today after they were arrested at Ulladulla yesterday.
Police said they were confident all alleged members of the criminal syndicate were in custody.
Media player: “Space” to play, “M” to mute, “left” and “right” to seek.
Police smash cocaine ring at Sydney Fish Market in Christmas Day raid
By Rachel Olding, Latika Bourke, Rachel Browne
A former rugby league first grade player, a Bondi entrepreneur and a several fishermen are among 15 men arrested on Christmas Day in a multimillion-dollar cocaine ring bust.
Police will allege the men were imported more than a tonne of cocaine via the iconic Sydney Fish Market and other NSW ports.
Tip-off led to Sydney Fish Market drugs raids
Information from a concerned “member of the community” led to the arrest of 15 men and the seizure of 1.1 tonnes, say NSW police.
Australian Federal Police Acting Assistant Commissioner Chris Sheehan described the alleged syndicate as “robust, resilient and determined”.
He told a packed Sydney press conference that the 15 arrested men were “determined to exploit some of the most vulnerable members of the community.”
The cocaine seized by police. Photo: Rachel Browne
The seizure of 500kg of cocaine in Sydney, 600kg of the drug in Tahiti and 32kg of heroin in Fiji make it the largest drug bust of its kind in Australia.
NSW Police State Crime Commander Mark Jenkins said all the drugs originated in South America before being transferred across the South Pacific by ship.
Several of the men were arrested on Christmas Day as they docked a shipping vessel named Dalrymple at the Sydney Fish Markets.
It’s alleged the boat was used to ferry drugs between NSW ports and a larger ship stationed out at sea that held drugs smuggled from Chile.
The accused men have been refused bail. Photo: NSW Police
Operation Okesi, comprising officers from NSW Police, Australian Federal Police and Australian Border Force, started over two-and-a-half-years after police received a “thread” of information.
Since then, five alleged importations by the sophisticated syndicate have been thwarted.
This image shows a boat carrying 500kg of cocaine that was originally picked up in Fiji. Photo: Supplied
It includes the seizure of 32 kilograms of heroin by authorities in Fiji in December 2014 and the seizure of 606 kilograms of cocaine by authorities in Tahiti in March.
Officers then observed the Dalrymple depart the Sydney Fish Markets on December 3 and travel to the Central Coast. The vessel was monitored by Maritime Border Command and the NSW Police’s Marine Area Command.
Former rugby league player John Tobin (middle row, third from right) was one of the men arrested. Photo: Supplied
On Christmas night, officers watched the crew launch a small one-man dinghy which allegedly travelled to Parlsey Bay at Brooklyn on the NSW Central Coast and met with two other men.
All three were arrested and about 500 kilograms of cocaine was seized from the dinghy.
Arrested: maritime worker Reuben John Dawe. Photo: Facebook
Several other men were arrested on board the Dalrymple vessel as it docked at Sydney Fish Market on Christmas night.
A police source told Fairfax Media the syndicate thought they could take advantage of the festive season by striking on Christmas Day.
Authorities valued the total amount of cocaine seized at $360 million.
Among the men arrested is former Eastern Suburbs Roosters player John Roland Boyd Tobin, who played 125 matches as lock forward in the 1980s.
Bondi entrepreneur Darren John Mohr was also arrested. He lists his occupation as the owner Martini Motors and is also the former owner of the Bondi Rescue HQ cafe.
His Instagram profile shows a love of Harley Davidson motorbikes, Rolls Royce cars and being shirtless.
Police also arrested Reuben John Dawe, who lists his occupation as a maritime worker and commercial fisherman Joseph Pirrello, 63.
Other man arrested in the sting include Simon Peter Spero, 56, Graham Toa Toa, 42, Stuart Ayrton, 54, Jonathan Cooper, 29, Richard Lipton, 37, Frank D’Agostino, 54, and Benjamin Sara, 31.
They were all refused bail in Parramatta Bail Court on Monday, Tuesday and Wednesday.
Two other men, extradited from Tasmania and Queensland, will appear in Parramatta Bail Court on Thursday as well as two men arrested in the Nowra area.
Footage released by police show multiple men being arrested in the dark from on-board the Dalrymple fishing vessel.
One of the men shown with his hands tied behind his back is wearing only a pair of boxer shorts covered in cartoon pictures of crocodiles.
“This operation has been running for more than two-and-a-half years and culminated over the Christmas period,” a police statement reads.
The men were aged between 29 and 63 years old. Police are due to address the media at 11am on Thursday.
“I direct Mr Obeid be taken down [into the cells],” Justice Beech-Jones says.
After loosening his tie and handing his watch to his lawyers, Obeid was led from the dock in court five in the historic Darlinghurst Supreme Court by corrective services officers.
Justice Beech-Jones says Obeid’s lawyers have not established “exceptional circumstances” exist to warrant a grant of bail pending his appeal against conviction and sentence.
“I do not accept Mr Obeid’s appeal rises any higher than being reasonably arguable,” he says of the merits of the foreshadowed appeal.
Eddie Obeid to be stripped of parliamentary pension as Baird government reacts to his sentencing
Sean Nicholls
Former Labor minister Eddie Obeid is set to be stripped of his annual $120,000 parliamentary pension following his sentencing for wilful misconduct in public office.
On Thursday, Obeid was sentenced to a maximum 5 years in jail with a non parole period of three years.
Eddie Obeid jailed for five years
Former NSW Labor Minister Eddie Obeid has been jailed for a maximum of five years for misconduct in public office, with a non-parole period of three years.
Shortly afterwards, Premier Mike Baird announced MPs convicted of a serious offence during their time in office will lose their parliamentary pension, even if they quit before charges are laid.
The announcement means Obeid is set to be stripped of his lifetime annual pension worth more than $120,000 a year.
Eddie Obeid arriving at the Supreme Court to be sentenced on Thursday. Photo: Daniel Munoz
Presently MPs convicted of a serious offence – punishable by at least five years imprisonment – can keep their pensions if they are not charged while in office.
“The crimes of Eddie Obeid and his cronies are the most serious instance of official corruption we have seen in our lifetimes,” Mr Baird said.
“Regardless of political affiliation, any MP who commits a serious offence while in office should face the consequences, and should not be shielded simply because they resign before being charged.
“We will work cooperatively with the Opposition and cross-bench MPs over the summer recess to bring forward amendments that repair this glaring anomaly, and we will make sure they capture Obeid and any others who find themselves in his situation.”
NSW Premier Mike Baird has announced MPs convicted serious offences during their time in office will lose their parliamentary pension. Photo: James Alcock
The change will require an amendment to legislation to be put to parliament early next year.
The Baird government has also indicated it will claw back the estimated $280,000 legal assistance he was given for this particular ICAC inquiry.
Eddie Obeid sentenced for Circular Quay corruption
Michaela Whitbourn
‘Sanctity of jury verdict’
Justice Beech-Jones says the “public interest upholding the sanctity of the jury’s verdict” is a factor weighing against granting bail.
The corrupt former Labor kingpin’s lawyers have also suggested he should be granted bail because he is facing a committal hearing on other corruption charges next year.
The Supreme Court judge says it can be accepted it will be harder for Obeid to prepare for that case while in jail.
12:45pm
The judge decides
Justice Robert Beech-Jones is now delivering his decision on whether Obeid should be granted bail. It’s a busy morning for the Supreme Court judge.
Justice Robert Beech-Jones delivers his decision in the Eddie Obeid sentencing.
12:44pm
The final, final point
It feels like Obeid’s barrister is holding out the promise of a “final” point but there is always another one to be made.
Guy Reynolds, SC, says Obeid will appeal not only his conviction but his sentence.
And yes, he still wants “a release order or bail” pending that appeal. If he doesn’t get it from Justice Beech-Jones he is likely to ask the Court of Criminal Appeal to decide on that point too.
12:35pm
‘Unreasonable verdict’
Obeid’s barrister Guy Reynolds, SC, says he is moving onto his “final” point.
Not only does Reynolds say the jury was misdirected by Justice Beech-Jones, he says the jury’s verdict was “unreasonable and cannot be supported by the evidence”.
It’s good to cover all one’s bases.
Reynolds says he is “grateful” to the court for allowing him to set out the grounds of appeal, as “aggravating” as it may be.
He reiterates he is seeking bail for his 73-year-old client pending an appeal.
Eddie Obeid outside court this morning. Photo: Daniel Munoz
12:26pm
Still here
Oh yes, we’re still here in court. Obeid’s barrister Guy Reynolds, SC, is fleshing out his submission there has been a miscarriage of justice.
Obeid has no intention of going to jail and his legal team wants Justice Beech-Jones to grant bail today.
The Herald‘s state political editor Sean Nicholls has the exclusive: the Baird government will strip Obeid of his annual $120,000 parliamentary pension following his jail sentence for misconduct in public office.
Someone’s having a good day, and it ain’t Eddie. Photo: James Alcock
12:08pm
No love lost
Former Labor premier Kristina Keneally is out of the blocks early to offer her views on Obeid’s jail sentence. She’s not mincing her words.
11:57am
It ain’t over
Usually when a person is sent to prison, they are taken away from the courtroom almost immediately by corrective services.
Not so in the Obeid case. His lawyer, Guy Reynolds, SC, is in full flight about the alleged miscarriage of justice suffered by his client. He wants bail.
An impassive Obeid remains in the dock as Reynolds and Justice Beech-Jones engage in a robust discussion about the latter’s summing up to the jury.
11:49am
What next
An appeal is already in the offing but for the time being Obeid is going to jail for a maximum of five years, with no possibility of release for three years.
What next? Glad you asked. Obeid and his entrepreneurial middle son, Moses, have been charged over a separate deal exposed at ICAC, relating to the very fortuitous creation of a coal mining tenement over their rural property in the Bylong Valley near Mudgee.
The deal netted the Obeid family $30 million, ICAC heard.The men will face a three-week committal hearing starting on May 29 to test the strength of the prosecution’s case and determine if they should stand trial.
Moses Obeid outside the Supreme Court earlier this year. Photo: Daniel Munoz
11:41am
Appeal, anyone?
Obeid’s barrister, Guy Reynolds, SC, has leapt to his feet and, as foreshadowed, is already flagging an appeal.
He says there has been a “miscarriage of justice” and they will need to trot off to the Court of Criminal Appeal.
“The prospects of Mr Obeid succeeding … on appeal are extremely high,” Reynolds says.
“Given the nature of the offending and notwithstanding Mr Obeid’s personal circumstances, I am satisfied that, having considered all possible alternatives, no penalty other than imprisonment is appropriate,” he says.
“Mr Obeid, will you please stand up.”
11:29am
Five years
Justice Beech-Jones has sentenced Obeid to a maximum of 5 years in jail, with a three-year non parole period.
11:27am
‘Not an opinion poll’
This is it. “Conclusion,” Justice Beech-Jones says clearly.
He says sentencing is not conducted via “opinion polls”.
“If Mr Obeid had not willfully abused his position as a parliamentarian, then his life and career would be a testament to the values of hard work, family and public service. Instead, his time in public life has produced a very different legacy.”
11:19am
Life expectancy
And we are inching closer. Justice Beech-Jones says a jail sentence should not be reduced because it would consume “most of an offender’s remaining life expectancy”.
11:15am
Medical conditions
The court hears Obeid suffers from a litany of medical conditions. He had a stroke earlier this year, has had type two diabetes “for years”, has high blood pressure and colonic polyps.
He also tripped on a coffee table earlier this year and was taken to hospital.
However, the conditions are “stable and controlled”, according to medical evidence.
But expert evidence tendered by Obeid’s legal team says it is “unlikely that … Obeid would receive appropriate medical treatment in custody if he was incarcerated”.
Justice Beech-Jones says he accepts Obeid would receive “a superior level of care in the community” but he is satisfied “he would receive an adequate level of care” in jail.
Eddie Obeid outside court this morning. Photo: Daniel Munoz
Justice Beech-Jones says the evidence suggests the Obeid family is “exceptionally close” and would be hit hard by the jailing of the patriarch.
But he notes it was Obeid’s decision to prioritise the interest of his family above his duty to the public that led to his offending.
A parliamentarian cannot use their position to “afford generosity” to their family or associates, he says.
11:03am
‘Mitigating factor’
Obeid enlisted 55 character witnesses in his fight to avoid jail. Justice Beech-Jones says they are evidence of “prior good character”, which is a “mitigating factor” in sentencing.
However, he says in cases of corruption the “need for deterrence is particularly strong” and the references will be “afforded less weight”.
10:53am on 15 Dec 2016
‘Deliberate breach of trust’
Justice Beech-Jones is getting closer to delivering those final words: to jail or not to jail.
He says the essence of the offence of misconduct in public office is a “deliberate breach of trust”.
The seniority of the public official is relevant, along with the nature of the breach.
The Supreme Court judge is surveying relevant cases, and says they demonstrate the “onerous duty” imposed upon parliamentarians and ministers.
Eddie Obeid outside court this morning. Photo: Daniel Munoz
10:47am on 15 Dec 2016
The penalty
Now we’re getting down to it. Justice Beech-Jones is setting out the principles for sentencing Eddie Obeid.
In NSW the offence of misconduct in public office is not codified in an act of Parliament – it is simply part of the common law (law made by judges).
That means the maximum penalty has not been set out in legislation and is technically “at large”, meaning life.
But in other states, where the offence has been codified, the maximum penalty is about seven years. This is relevant but the court is not “limited” by that, Justice Beech-Jones says.
He says there is “no difference in substance” between a politician receiving a bribe to advance someone else’s interest and using their position to line their own pockets.
10:40am on 15 Dec 2016
‘Makes no difference’
It makes no difference to Obeid’s criminality whether he was acting to advance his own financial interests or those of his family, Justice Beech-Jones said
Eddie Obeid: The rise, reign and recession of NSW’s most notorious political powerbroker
The sentencing of former Labor powerbroker Eddie Obeid is a day of reckoning for a man who once wielded his influence to build and destroy the careers of premiers and MPs in New South Wales.
Key points:
Eddie Obeid was renowned as a fearsome Labor kingmaker
His business and political empires became entwined
An ICAC finding of corruption lead to his prosecution
Obeid has been sentenced to five years’ jail, with a minimum of three years, for misconduct in a public office in relation to his family’s secret business dealings at Circular Quay.
Edward Moses Obeid was born in a village in northern Lebanon in 1943, and after moving to Australia as a child, worked as a cab driver and at local Arabic-language newspaper El Telegraph.
Within a few years he was running that newspaper, and was recruited by Labor powerbroker Graham Richardson to join the party in 1972.
ABC investigative journalist Marion Wilkinson’s book The Fixer describes how Obeid was soon providing invaluable advice to Richardson on how to politically organise ethnic communities.
It was Mr Richardson who gave Obeid the necessary backing to see him elected to the NSW Upper House in 1991, and he rose through the ranks to become the minister for fisheries and mineral resources from 1999 to 2003.
But it was his creation and control of the so-called Terrigals sub-faction of the Labor Right that would go on to dominate NSW Labor for the better part of two decades.
One king to rule them all
The sub-faction was formed, with Obeid its undisputed king, at a now infamous meeting at his beach house in Terrigal in 1992.
It went on to use its numbers relentlessly to fundraise, control pre-selections, guide policy and elevate chosen MPs to the frontbench.
At the height of its powers, the Terrigals sub-faction was instrumental in installing and removing a series of premiers — namely Morris Iemma, Nathan Rees and Kristina Keneally.
Mr Iemma has said his premiership became “untenable” because he could not convince the Terrigals to approve his preferred ministerial reshuffle.
Mr Rees was rolled after standing up to the sub-faction by sacking Ian Macdonald and Joe Tripodi from the ministry.
Just before he was knifed, Mr Rees famously said: “should I not be Premier by the end of the day, let there be no doubt in the community’s mind, no doubt, that any challenger will be a puppet of Eddie Obeid and Joe Tripodi.”
How the empire unravelled
But Obeid’s influence was broader than the parliamentary caucus.
His diary entries from 2007 to 2009, tendered to Independent Commission Against Corruption (ICAC) hearings, show a revolving door of developers, union bosses and business figures queuing up to seek appointments with him.
With a string of business and property interests in both Australia and Lebanon, Obeid was already wealthy when he entered Parliament and he continued to build both his financial and political empires while an MP.
And it was the mixing of his political and business ties which eventually led to him being convicted on June 28 this year of misconduct in a public office.
The Crown said Obeid knew Mr Dunn from when he had been fisheries minister, and argued that he misused his position as an Upper House MP to “dupe” Mr Dunn into believing he was acting on behalf of constituents.
The court found he was in fact trying to stop a competitive tender process for the leases to financially benefit his own family.
Prosecution not to be scoffed at
The prosecution stemmed from a corrupt conduct finding by the ICAC.
In his findings in the ICAC inquiry into the Circular Quay leases, assistant commissioner Anthony Whealy described the former MP’s actions as demonstrating “the moral vacuum at the core of his political being”.
When the ICAC first handed down its finding, Obeid scoffed that he believed there was “less than a one per cent chance” that he would be prosecuted as a result.
Even when charged, he still said he had “no concerns whatsoever” and was “very confident” he would not be convicted because he was innocent.
Aussie Criminals and Crooks 