Former state director of the Victorian Liberal Party, Damien Mantach, busted embezzling $1.5 million in the election campaign funds.



money hungry 2

abc.net.au

Embezzlement allegation: The Liberal Party will have to rebuild trust

The Drum

Opinion

Fri 21 Aug 2015, 9:58am

It’s the thousands of ordinary Liberal Party members who should feel most outraged at the alleged embezzlement of $1.5 million of campaign funds. And the party hierarchy will have to work hard to earn their trust back, writes Terry Barnes.

The Victorian Liberal Party is in a state of deep shock after revelations its former state director, Damien Mantach, is accused of embezzling $1.5 million of party funds over a number of years.

While investigations are continuing, Victorian Liberal president, Michael Kroger, has emailed party members saying that Mantach is the only person in the frame, and all will be done to recover as much of the missing funds as possible.

It appears a breathtaking $1.5 million of party funds was diverted for personal benefit. Victorian Liberal parliamentary leader, Matthew Guy, said that what was taken was “a very significant portion of the money raised by the party in fundraising … People did a lot of work to get that. We all feel completely gutted and furious”.

There certainly will be former Victorian Liberal MPs closely defeated in last November’s state election whose anger will be, like Guy’s, white-hot, sharing his view that the missing funds could have saved their campaigns. Current marginal seat federal MPs will feel likewise. But having escaped with their parliamentary pensions or severance packages, they personally got off lightly.

What really angers and disappoints about Mantach’s alleged actions is that they were not really stealing from a mere corporate entity, the Victorian Division of the Liberal Party of Australia. Nor did they ruin the large corporate donors and high net worth individuals who donate to political parties, because that is part of what they do to build political networks, relationships and influence.

No, the grand embezzlement and the governance failures that allowed it to happen are above all an utter betrayal of, and insult to, thousands of ordinary Liberal Party members and supporters across Victoria who are not wealthy or personally powerful but are the soul of the party.

They’re the ones who turn out in all weather at election times to support MPs and candidates, door-knock, stuff letterboxes and talk up the Liberal cause to anyone who will listen.

They’re the ones who greet you at the polling booth on election days with a smile and a how-to-vote card, and look forward to bantering with voters and their counterparts from other parties.

They’re the ones who faithfully attend branch meetings, local party events, run the trivia and soup nights, and buy the tickets in the raffle that inevitably is a part of any political gathering – and donate back the prizes.

They’re the ones who drive up to hundreds of kilometres to attend party councils and pre-selection conventions.

They’re the ones who organise local electorate fundraising functions, work tirelessly to make them well-attended and successful, and cheerfully endure the proverbial rubber chicken and drinks at bar prices, because they buy their own tickets as well as sell them.

They’re the ones who pay membership subscriptions or respond to bigwigs’ circular appeals for donations. Many may not be able to afford to give much, but their trickles join to become a funding river for the party: a river, it seems, that can easily be dipped into by the unscrupulous.

And they’re the ones who are most entitled to feel gutted and angry at what has happened.

As a group, most ordinary members of the Liberal Party are older and more conservative than their MPs. They are often retired, and volunteer for party work because it gives them the satisfaction of furthering a cause, or an MP or candidate, they believe in passionately.

Others are young activists with stars in their eyes and idealism in their hearts.

Unlike the likes of Malcolm Turnbull, most Liberal rank-and-file members don’t have palatial mansions to go home to, nor much spare cash. Contrary to the Liberal silvertail image, many members and local Liberal supporters are students, pensioners or self-funded retirees on very modest incomes, and donate what they often can ill afford.

Yet they do so willingly and turn out for the party because they believe, as the Victorian Division’s website is bannered, that “The Liberal Party exists to provide high quality governments that empower people to solve the major challenges they face in their lives”.

This grassroots faith is what’s been shaken to its core by what has happened.

The Liberal organisation will recover and be reformed. As incoming Victorian president earlier this year, taking office just as Mantach left, Kroger was refreshingly open and honest with his members and the public as soon as the appalling situation was confirmed. That welcome candour is a good start to rebuilding trust in a crisis.

But just as with former Health Services Union leaders Craig Thomson, Michael Williamson and Kathy Jackson, this is yet another case of an elected or appointed official feeling somehow entitled to take advantage of the so-called “little people” who are their rank-and-file members, even though ultimately they owed everything to those they betrayed.

This week’s revelations, be they Mantach’s alleged activities or Jackson’s humiliation in court, should remind elected and appointed office holders in political parties and politically-active organisations alike that respecting the trust of their members and the public is fundamental to public life and a healthy democracy. Their position and status is a conferred privilege, not a personal fiefdom.

Fortunately, most of these office holders, across the political spectrum, work very hard to earn and retain that trust.

The Victorian Liberal Party will likely find, as the HSU has found, and indeed as federal MPs are finding with ongoing public anger over abused parliamentary “entitlements”, when the bond of trust with their ordinary members and supporters is broken, it is very, very hard to restore. But if it looks to its grass roots members, and respects and honours their values, aspirations and commitment in reforming its governance and accountability, the party will recover better and stronger for this scarifying experience.

Terry Barnes is a policy consultant, former senior Howard government adviser and member of the Victorian Division of the Liberal Party. Twitter: @TerryBarnes5.


abc.net.au

Tasmanian Liberals assure members former state director repaid all money

Thu 20 Aug 2015, 7:23pm

The Tasmanian Liberals have assured members the party is not affected by allegations former state director Damien Mantach stole $1.5 million from the election fund of the Victorian Liberal Party.

The police fraud squad is investigating the allegations against Mr Mantach, who served as state director in both Tasmania and Victoria.

The money is alleged to have vanished over four years to fund Mr Mantach’s lifestyle in Victoria.

Tasmanian Liberal Party president Geoff Page used Facebook to confirmed that Mr Mantach did owe the Tasmanian branch money in 2008.

“I have today been advised that Mr Mantach had in 2008 a liability for personal expenses to the Tasmanian division totalling $47,981.78, which was fully repaid by Mr Mantach to the division upon his departure in March of that year,” he said.

Mr Page went on to assure members he was confident no other funds had gone missing.

“As the debt was settled in full the Division considered the matter closed,” he said.

“The Tasmanian division has robust internal financial processes which, in keeping with our obligations to our membership have been periodically reviewed and continually improved since 2008 and are annually audited.”


abc.net.au

Police to investigate Liberal Party $1.5m embezzlement claims

By Jean Edwards

Thu 20 Aug 2015, 7:27pm

The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.

The money is alleged to have vanished over four years to fund Mr Mantach’s lifestyle.

An audit of the party’s finances after last year’s state election loss uncovered unauthorised financial transactions linked to Mr Mantach, with money missing from both state and federal campaign funds.

The Victoria Police fraud and extortion squad has been called in to investigate.

Liberal Party president Michael Kroger said Mr Mantach had admitted to wrongdoing.

“We feel profoundly betrayed and terribly disappointed with what’s happened,” Mr Kroger said.

Key points:

  • Liberal Party accuses former state director of embezzling $1.5m
  • Alleged theft happened over four years
  • Victoria Police fraud and extortion squad called in to investigate
  • Party believes Mantach took the money to fund his lifestyle

He said the party believed Mr Mantach had acted alone.

“We’re not aware that anyone at the party head office or any officials had any involvement at all,” he said.

It also emerged that Mr Mantach repaid tens of thousands of dollars during his time as state director of the Tasmanian branch.

In a letter to members posted on Facebook, Tasmanian Liberal president Geoff Page said in March 2008 that when he left the role, Mr Mantach fully repaid a liability of nearly $48,000 for personal expenses.

Mr Page said the division considered the matter closed and had robust internal financial processes.

Mr Kroger said he did not believe the missing money influenced the 2014 election result, or that it would affect the next federal election.

Liberal leader Matthew Guy said the party was furious at what he called a “pretty basic effort at embezzlement”.

“We want our money back,” he said.

“We want this matter sent to the police and we will be doing everything we can to ensure that justice is done.

“I saw someone making a comment that we’re white hot with anger, that’s just the start of it.”

Mr Kroger said the missing money was confined to the party’s Victorian division and he was confident some of it could be recovered through assets bought with the funds.

Mr Kroger conceded the Liberal Party had failed to properly monitor spending.

“Obviously it should have been picked up years ago — it wasn’t,” he said.

Former premier Denis Napthine, who led the party during last year’s campaign, said he was surprised and bitterly disappointed by the allegations.

The party’s administrative committee met this morning to discuss how to deal with the missing money.

Mr Mantach has been contacted for comment.


Australian Broadcasting Corporation

Broadcast: 20/08/2015

Reporter: Madeleine Morris

Victoria’s Liberal Party has been blind-sided by claims a former Director stole $1.5 million of funds with the fraud squad investigating allegations and branch members asking if other financial dealings are suspect.

Transcript

SABRA LANE, PRESENTER: Victoria’s Liberal Party has been blindsided by allegations its former director stole $1.5 million of party funds.

The party believes Damian Mantach siphoned off the money using fake invoices and Victoria police is now investigating.

Liberal politicians are furious and say the loss is a slap in the face to party members.

Late today, the Tasmanian Liberal Party confirmed Mr Mantach had to repay tens of thousands of dollars in personal expenses he racked up while director of that state’s party.

Madeleine Morris reports.

LIBERAL PARTY MEMBER: We’re white hot with anger. That’s just the start of it.

DENIS NAPTHINE, FORMER VICTORIAN PREMIER: I’m surprised, I’m shocked, I’m bitterly disappointed.

MADELEINE MORRIS, REPORTER: Sombre-faced and genuinely shocked, Victorian Liberal MPs arrived this morning to be briefed on the alleged theft of $1.5 million by one of their own.

LIBERAL PARTY MEMBER II: We just want to get to the truth and the bottom of the matter.

MICHAEL KROGER, LIBERAL PARTY VIC. BRANCH: Good morning, everybody. Well as you know, the Liberal Party is today referring some matters to the Victoria Police relating to the unauthorised removal of some party funds from the party head office, solely the work of one person. It should’ve been detected a long time ago. It wasn’t, which is regrettable. And the party’s obviously gonna make sure that this never happens again.

MADELEINE MORRIS: That person is Damien Mantach, the Victorian Liberal Party’s state director until March this year. The party believes that over a period of four years, Damien Mantach siphoned off money from Victorian Liberal headquarters via fake invoices for fake work.

The irregularities were uncovered when new state Liberal president Michael Kroger ordered a forensic audit of the accounts when he took over after last year’s disastrous state election.

NICK ECONOMOU, POLITICAL ANALYST: The state Liberal Party is in a bit of trouble and it’s been subject to a great deal of internal tension. There’d been problems within the parliamentary wing of the party. That contributed of course to the Liberals’ defeat at the last state election. And we also know that there were all sorts of tensions in the party organisation, the party membership.

DENIS NAPTHINE: I’m absolutely devastated, but particularly for the candidates across the state of Victoria who worked extremely hard, for the Liberal Party members and volunteers who worked extremely hard. This is a real shock to all of us.

MADELEINE MORRIS: That includes Angelo Kakouros, chair of the party’s South Barwon branch. He’s been fielding calls from party members all day.

ANGELO KAKOUROS, CHAIR, LIBERAL PARTY SOUTH BARWON BRANCH: It is a lack of trust and great, great disappointment.

MADELEINE MORRIS: But Mr Kakouros says his branch has been worried about the former state director for some time.

ANGELO KAKOUROS: I’ve had concerns with Damien Mantach for the last three to four years as a state director and personal experience and just the way things have operated and the communication between Damien, the administrative committee and some of the people within the organisation with their communication here locally in our area.

NICK ECONOMOU: It’s a very, very big task to try and keep track of what’s going on and to keep paid full-time officials answerable and accountable in what is essentially a voluntary organisation. The state treasurer of the Liberal Party would be a volunteer after all. Now, on top of this we’re getting increasing regulation to try and regulate the flow of donations. … But I suspect that that may be encouraging clever people to be a bit tricky here and try and find ways to squirrel resources away.

MADELEINE MORRIS: Today, Michael Kroger admitted there was a systemic problem with the Liberal Party accounting and changes were being made.

MICHAEL KROGER: More people in the accounting section and different oversights in relation to levels of authorised expenditure and a greater role for the party finance committee and more attention on these matters by the party executive.

MADELEINE MORRIS: It’s not the first time Damien Mantach has been in the headlines. Two years ago, he was investigated and ultimately cleared over payments he authorised to a former Liberal staffer who quit after being implicated in a scandal that snared the Police Minister.

And late today, the Tasmanian branch of the Liberal Party confirmed Mr Mantach had to repay nearly $48,000 in personal expenses when he was Tasmanian branch state director.

The fallout today extended all the way from Spring Street to Canberra.

BRENDAN O’CONNOR, FEDERAL LABOR MP: In 2013 the Prime Minister said, and I quote, “I know Damien Mantach well. He’s a person of integrity. So let’s see where this investigation goes. He has my confidence.” Does the Prime Minister agree that this ringing endorsement is yet another failure of judgment on his part?

TONY ABBOTT, PRIME MINISTER: But I can inform the House that matters concerning the individual in question have this morning been referred to the Victorian Police.

MADELEINE MORRIS: Today, no answer at the Mantach family home and Damien Mantach couldn’t be reached on the phone.

There is palpable shock here in Victoria that this could’ve happened to the party which prides itself on good financial management, particularly amongst Liberal rank and file. One branch chair told me it was like finding out the priest had been stealing from the collection plate. But there’s also relief it’s been uncovered by the party’s new state leadership.

ANGELO KAKOUROS: Michael Kroger, the state president, he’s doing a fantastic job in order to bring honesty and transparency back into the party.

MADELEINE MORRIS: The impact for the party may yet be felt in the place it will hurt most: the coffers.

NICK ECONOMOU: The Liberal Party really does rely heavily on membership fees and donations, so I think something that might damage the reputation of the party’s fundraising ability could be really seriously damaging to the Liberal Party.

LIBERAL PARTY MEMBER III: I think this is simply a matter of we’ve been robbed. We want our money back and we want justice done. Police will investigate and i think that’s all I should say at this point in time.

SABRA LANE: Madeleine Morris reporting.


Rachael Brown reported this story on Thursday, August 20, 2015 12:20:47

 abc.net.au

 Fmr Vic Liberal state director accused of stealing $1.5m from party over four years
 TRANSCIPT

ELEANOR HALL: Let’s go now to Victoria where that state’s branch of the Liberal Party is having some trouble of its own.

The Liberal leader Matthew Guy has accused the former state director of the Victorian Liberal Party, Damien Mantach, of embezzling $1.5 million in the election campaign funds.

Mr Guy says his party is “white hot” with anger, and that the funds could’ve made a difference in last year’s election.

In Melbourne, Rachael Brown reports.

RACHAEL BROWN: The Liberal Party says discrepancies were uncovered during a forensic audit of the party’s funds after last year’s state election loss.

The party’s former state director Damien Mantach is being accused of stealing $1.5 million over four years, but the audit continues.

Mr Mantach has not responded to the ABC’s calls.

Liberal party members were called into a crisis meeting this morning, and heading in, the party leader Matthew Guy made no attempt to mask his feelings.

MATTHEW GUY: We are furious; we want our money back.

RACHAEL BROWN: The matter has been referred to the Victoria Police Fraud and Extortion Squad, which says it’s investigating the disappearance of funds, but can’t comment further.

Mr Guy says, if the allegations prove true, it’s a massive betrayal of trust.

MATTHEW GUY: An enormous part of our election war chest, enormous. People did a lot of work to get that. I mean, we have a fundraising team who’ve done a huge amount of work; they’re always under a lot of scrutiny as you can imagine, and a lot of pressure.

But they’ve done a huge amount of work. We’ve got a lot of supporters, a lot of branch people who have worked their guts out for this party. And for what it appears to be one individual to do this to us leaves us bitterly cold.

RACHAEL BROWN: The Liberal party leader says the funds could’ve changed last year’s election result, which saw Labor’s Daniel Andrews dismissing the Napthine Coalition government.

Denis Napthine, who led the Victoria’s first one-term government in 60 years, says the fraud allegation is shocking and bitterly disappointing.

The party’s new president, Michael Kroger, has released a statement saying, when the audit turned up suspicious transactions amounting to $1.5 million between 2010 and 2014, Damien Mantach was asked to explain himself.

It was after this discussion that the party’s administrative committee voted to refer the matter to police.

Mr Kroger admits there’s a weakness with the Liberal Party’s checks and balances.

MICHAEL KROGER: Yeah, well on this occasion they clearly failed. So yep, quite up front about that. I’ve only been in the job four months, as you know. This has been going on for four years, so you know, it should have been picked up before and wasn’t, unfortunately.

RACHAEL BROWN: But he says there won’t be a clean out of branch holders, that the alleged fraud didn’t extend to other employees, officials or office bearers, and was limited to the party’s Melbourne headquarters.

He says civil action hasn’t been decided on.

MICHAEL KROGER: We’re sensitive to a number of issues, including the fact the person involved has a wife and family, and there are other matters which we want to take into account. But yes, we’ll be recovering a good deal of the funds in a cooperative relationship with the person involved.

RACHAEL BROWN: Mr Kroger says he doesn’t know where the money’s gone.

And he’s hit back at a suggestion that this is in a similar vein to the trade union boss Kathy Jackson being forced to repay $1.4 million of misappropriated members’ funds.

MICHAEL KROGER: When the Liberal party becomes aware of a serious matter like this, what do we do?

We investigate it quickly, we report it to the appropriate authorities, who in this case will be the Victoria Police. We don’t hide it; we don’t ignore it; we deal with it.

On the other hand, it’s taken a royal commission at massive public expense bringing these union and Labor leaders kicking and screaming before the public to get any type of information from them at all, at massive public expense. And even now they want to sack the umpire.

RACHAEL BROWN: One commentator has told The World Today that there might be more to this than meets the eye.

Damian Mantach stepped down from the director’s job in March. A couple of years ago he was one of the senior Liberals secretly recorded during the police command crisis that led to Ted Baillieu resigning as premier.

The commentator says this audit and slur on a former power player in the executive committee might have more to do with the ongoing power struggle and factional rifts at the upper levels of the Victorian Liberal party.

ELEANOR HALL: Rachael Brown with that report.


Damien Mantach embezzlement -Finger pointing begins over Liberals’ stolen cash


The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.

The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.

Embezzlement allegation: The Liberal Party will have to rebuild trust

The Drum

Opinion

Fri 21 Aug 2015, 9:58am

It’s the thousands of ordinary Liberal Party members who should feel most outraged at the alleged embezzlement of $1.5 million of campaign funds. And the party hierarchy will have to work hard to earn their trust back, writes Terry Barnes.

The Victorian Liberal Party is in a state of deep shock after revelations its former state director, Damien Mantach, is accused of embezzling $1.5 million of party funds over a number of years.

While investigations are continuing, Victorian Liberal president, Michael Kroger, has emailed party members saying that Mantach is the only person in the frame, and all will be done to recover as much of the missing funds as possible.

It appears a breathtaking $1.5 million of party funds was diverted for personal benefit. Victorian Liberal parliamentary leader, Matthew Guy, said that what was taken was “a very significant portion of the money raised by the party in fundraising … People did a lot of work to get that. We all feel completely gutted and furious”.

There certainly will be former Victorian Liberal MPs closely defeated in last November’s state election whose anger will be, like Guy’s, white-hot, sharing his view that the missing funds could have saved their campaigns. Current marginal seat federal MPs will feel likewise. But having escaped with their parliamentary pensions or severance packages, they personally got off lightly.

What really angers and disappoints about Mantach’s alleged actions is that they were not really stealing from a mere corporate entity, the Victorian Division of the Liberal Party of Australia. Nor did they ruin the large corporate donors and high net worth individuals who donate to political parties, because that is part of what they do to build political networks, relationships and influence.

No, the grand embezzlement and the governance failures that allowed it to happen are above all an utter betrayal of, and insult to, thousands of ordinary Liberal Party members and supporters across Victoria who are not wealthy or personally powerful but are the soul of the party.

They’re the ones who turn out in all weather at election times to support MPs and candidates, door-knock, stuff letterboxes and talk up the Liberal cause to anyone who will listen.

They’re the ones who greet you at the polling booth on election days with a smile and a how-to-vote card, and look forward to bantering with voters and their counterparts from other parties.

They’re the ones who faithfully attend branch meetings, local party events, run the trivia and soup nights, and buy the tickets in the raffle that inevitably is a part of any political gathering – and donate back the prizes.

They’re the ones who drive up to hundreds of kilometres to attend party councils and pre-selection conventions.

They’re the ones who organise local electorate fundraising functions, work tirelessly to make them well-attended and successful, and cheerfully endure the proverbial rubber chicken and drinks at bar prices, because they buy their own tickets as well as sell them.

They’re the ones who pay membership subscriptions or respond to bigwigs’ circular appeals for donations. Many may not be able to afford to give much, but their trickles join to become a funding river for the party: a river, it seems, that can easily be dipped into by the unscrupulous.

And they’re the ones who are most entitled to feel gutted and angry at what has happened.

As a group, most ordinary members of the Liberal Party are older and more conservative than their MPs. They are often retired, and volunteer for party work because it gives them the satisfaction of furthering a cause, or an MP or candidate, they believe in passionately.

Others are young activists with stars in their eyes and idealism in their hearts.

Unlike the likes of Malcolm Turnbull, most Liberal rank-and-file members don’t have palatial mansions to go home to, nor much spare cash. Contrary to the Liberal silvertail image, many members and local Liberal supporters are students, pensioners or self-funded retirees on very modest incomes, and donate what they often can ill afford.

Yet they do so willingly and turn out for the party because they believe, as the Victorian Division’s website is bannered, that “The Liberal Party exists to provide high quality governments that empower people to solve the major challenges they face in their lives”.

This grassroots faith is what’s been shaken to its core by what has happened.

The Liberal organisation will recover and be reformed. As incoming Victorian president earlier this year, taking office just as Mantach left, Kroger was refreshingly open and honest with his members and the public as soon as the appalling situation was confirmed. That welcome candour is a good start to rebuilding trust in a crisis.

But just as with former Health Services Union leaders Craig Thomson, Michael Williamson and Kathy Jackson, this is yet another case of an elected or appointed official feeling somehow entitled to take advantage of the so-called “little people” who are their rank-and-file members, even though ultimately they owed everything to those they betrayed.

This week’s revelations, be they Mantach’s alleged activities or Jackson’s humiliation in court, should remind elected and appointed office holders in political parties and politically-active organisations alike that respecting the trust of their members and the public is fundamental to public life and a healthy democracy. Their position and status is a conferred privilege, not a personal fiefdom.

Fortunately, most of these office holders, across the political spectrum, work very hard to earn and retain that trust.

The Victorian Liberal Party will likely find, as the HSU has found, and indeed as federal MPs are finding with ongoing public anger over abused parliamentary “entitlements”, when the bond of trust with their ordinary members and supporters is broken, it is very, very hard to restore. But if it looks to its grass roots members, and respects and honours their values, aspirations and commitment in reforming its governance and accountability, the party will recover better and stronger for this scarifying experience.

Terry Barnes is a policy consultant, former senior Howard government adviser and member of the Victorian Division of the Liberal Party. Twitter: @TerryBarnes5.

Click image below to enlarge

The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.

The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.


abc.net.au

Tasmanian Liberals assure members former state director repaid all money

Thu 20 Aug 2015, 7:23pm

The Tasmanian Liberals have assured members the party is not affected by allegations former state director Damien Mantach stole $1.5 million from the election fund of the Victorian Liberal Party.

The police fraud squad is investigating the allegations against Mr Mantach, who served as state director in both Tasmania and Victoria.

The money is alleged to have vanished over four years to fund Mr Mantach’s lifestyle in Victoria.

Tasmanian Liberal Party president Geoff Page used Facebook to confirmed that Mr Mantach did owe the Tasmanian branch money in 2008.

“I have today been advised that Mr Mantach had in 2008 a liability for personal expenses to the Tasmanian division totalling $47,981.78, which was fully repaid by Mr Mantach to the division upon his departure in March of that year,” he said.

Mr Page went on to assure members he was confident no other funds had gone missing.

“As the debt was settled in full the Division considered the matter closed,” he said.

“The Tasmanian division has robust internal financial processes which, in keeping with our obligations to our membership have been periodically reviewed and continually improved since 2008 and are annually audited.”


abc.net.au

Police to investigate Liberal Party $1.5m embezzlement claims

By Jean Edwards

Thu 20 Aug 2015, 7:27pm

The police fraud squad is investigating allegations former Victorian Liberal Party state director Damien Mantach embezzled around $1.5 million of election campaign funds.

The money is alleged to have vanished over four years to fund Mr Mantach’s lifestyle.

An audit of the party’s finances after last year’s state election loss uncovered unauthorised financial transactions linked to Mr Mantach, with money missing from both state and federal campaign funds.

The Victoria Police fraud and extortion squad has been called in to investigate.

Liberal Party president Michael Kroger said Mr Mantach had admitted to wrongdoing.

“We feel profoundly betrayed and terribly disappointed with what’s happened,” Mr Kroger said.

Key points:

  • Liberal Party accuses former state director of embezzling $1.5m
  • Alleged theft happened over four years
  • Victoria Police fraud and extortion squad called in to investigate
  • Party believes Mantach took the money to fund his lifestyle

He said the party believed Mr Mantach had acted alone.

“We’re not aware that anyone at the party head office or any officials had any involvement at all,” he said.

It also emerged that Mr Mantach repaid tens of thousands of dollars during his time as state director of the Tasmanian branch.

In a letter to members posted on Facebook, Tasmanian Liberal president Geoff Page said in March 2008 that when he left the role, Mr Mantach fully repaid a liability of nearly $48,000 for personal expenses.

Mr Page said the division considered the matter closed and had robust internal financial processes.

Mr Kroger said he did not believe the missing money influenced the 2014 election result, or that it would affect the next federal election.

Liberal leader Matthew Guy said the party was furious at what he called a “pretty basic effort at embezzlement”.

“We want our money back,” he said.

“We want this matter sent to the police and we will be doing everything we can to ensure that justice is done.

“I saw someone making a comment that we’re white hot with anger, that’s just the start of it.”

Mr Kroger said the missing money was confined to the party’s Victorian division and he was confident some of it could be recovered through assets bought with the funds.

Mr Kroger conceded the Liberal Party had failed to properly monitor spending.

“Obviously it should have been picked up years ago — it wasn’t,” he said.

Former premier Denis Napthine, who led the party during last year’s campaign, said he was surprised and bitterly disappointed by the allegations.

The party’s administrative committee met this morning to discuss how to deal with the missing money.

Mr Mantach has been contacted for comment.


Australian Broadcasting Corporation

Broadcast: 20/08/2015

Reporter: Madeleine Morris

Victoria’s Liberal Party has been blind-sided by claims a former Director stole $1.5 million of funds with the fraud squad investigating allegations and branch members asking if other financial dealings are suspect.

Transcript

SABRA LANE, PRESENTER: Victoria’s Liberal Party has been blindsided by allegations its former director stole $1.5 million of party funds.

The party believes Damian Mantach siphoned off the money using fake invoices and Victoria police is now investigating.

Liberal politicians are furious and say the loss is a slap in the face to party members.

Late today, the Tasmanian Liberal Party confirmed Mr Mantach had to repay tens of thousands of dollars in personal expenses he racked up while director of that state’s party.

Madeleine Morris reports.

LIBERAL PARTY MEMBER: We’re white hot with anger. That’s just the start of it.

DENIS NAPTHINE, FORMER VICTORIAN PREMIER: I’m surprised, I’m shocked, I’m bitterly disappointed.

MADELEINE MORRIS, REPORTER: Sombre-faced and genuinely shocked, Victorian Liberal MPs arrived this morning to be briefed on the alleged theft of $1.5 million by one of their own.

LIBERAL PARTY MEMBER II: We just want to get to the truth and the bottom of the matter.

MICHAEL KROGER, LIBERAL PARTY VIC. BRANCH: Good morning, everybody. Well as you know, the Liberal Party is today referring some matters to the Victoria Police relating to the unauthorised removal of some party funds from the party head office, solely the work of one person. It should’ve been detected a long time ago. It wasn’t, which is regrettable. And the party’s obviously gonna make sure that this never happens again.

MADELEINE MORRIS: That person is Damien Mantach, the Victorian Liberal Party’s state director until March this year. The party believes that over a period of four years, Damien Mantach siphoned off money from Victorian Liberal headquarters via fake invoices for fake work.

The irregularities were uncovered when new state Liberal president Michael Kroger ordered a forensic audit of the accounts when he took over after last year’s disastrous state election.

NICK ECONOMOU, POLITICAL ANALYST: The state Liberal Party is in a bit of trouble and it’s been subject to a great deal of internal tension. There’d been problems within the parliamentary wing of the party. That contributed of course to the Liberals’ defeat at the last state election. And we also know that there were all sorts of tensions in the party organisation, the party membership.

DENIS NAPTHINE: I’m absolutely devastated, but particularly for the candidates across the state of Victoria who worked extremely hard, for the Liberal Party members and volunteers who worked extremely hard. This is a real shock to all of us.

MADELEINE MORRIS: That includes Angelo Kakouros, chair of the party’s South Barwon branch. He’s been fielding calls from party members all day.

ANGELO KAKOUROS, CHAIR, LIBERAL PARTY SOUTH BARWON BRANCH: It is a lack of trust and great, great disappointment.

MADELEINE MORRIS: But Mr Kakouros says his branch has been worried about the former state director for some time.

ANGELO KAKOUROS: I’ve had concerns with Damien Mantach for the last three to four years as a state director and personal experience and just the way things have operated and the communication between Damien, the administrative committee and some of the people within the organisation with their communication here locally in our area.

NICK ECONOMOU: It’s a very, very big task to try and keep track of what’s going on and to keep paid full-time officials answerable and accountable in what is essentially a voluntary organisation. The state treasurer of the Liberal Party would be a volunteer after all. Now, on top of this we’re getting increasing regulation to try and regulate the flow of donations. … But I suspect that that may be encouraging clever people to be a bit tricky here and try and find ways to squirrel resources away.

MADELEINE MORRIS: Today, Michael Kroger admitted there was a systemic problem with the Liberal Party accounting and changes were being made.

MICHAEL KROGER: More people in the accounting section and different oversights in relation to levels of authorised expenditure and a greater role for the party finance committee and more attention on these matters by the party executive.

MADELEINE MORRIS: It’s not the first time Damien Mantach has been in the headlines. Two years ago, he was investigated and ultimately cleared over payments he authorised to a former Liberal staffer who quit after being implicated in a scandal that snared the Police Minister.

And late today, the Tasmanian branch of the Liberal Party confirmed Mr Mantach had to repay nearly $48,000 in personal expenses when he was Tasmanian branch state director.

The fallout today extended all the way from Spring Street to Canberra.

BRENDAN O’CONNOR, FEDERAL LABOR MP: In 2013 the Prime Minister said, and I quote, “I know Damien Mantach well. He’s a person of integrity. So let’s see where this investigation goes. He has my confidence.” Does the Prime Minister agree that this ringing endorsement is yet another failure of judgment on his part?

TONY ABBOTT, PRIME MINISTER: But I can inform the House that matters concerning the individual in question have this morning been referred to the Victorian Police.

MADELEINE MORRIS: Today, no answer at the Mantach family home and Damien Mantach couldn’t be reached on the phone.

There is palpable shock here in Victoria that this could’ve happened to the party which prides itself on good financial management, particularly amongst Liberal rank and file. One branch chair told me it was like finding out the priest had been stealing from the collection plate. But there’s also relief it’s been uncovered by the party’s new state leadership.

ANGELO KAKOUROS: Michael Kroger, the state president, he’s doing a fantastic job in order to bring honesty and transparency back into the party.

MADELEINE MORRIS: The impact for the party may yet be felt in the place it will hurt most: the coffers.

NICK ECONOMOU: The Liberal Party really does rely heavily on membership fees and donations, so I think something that might damage the reputation of the party’s fundraising ability could be really seriously damaging to the Liberal Party.

LIBERAL PARTY MEMBER III: I think this is simply a matter of we’ve been robbed. We want our money back and we want justice done. Police will investigate and i think that’s all I should say at this point in time.

SABRA LANE: Madeleine Morris reporting.


Rachael Brown reported this story on Thursday, August 20, 2015 12:20:47

 abc.net.au

 Fmr Vic Liberal state director accused of stealing $1.5m from party over four years
 TRANSCIPT

ELEANOR HALL: Let’s go now to Victoria where that state’s branch of the Liberal Party is having some trouble of its own.

The Liberal leader Matthew Guy has accused the former state director of the Victorian Liberal Party, Damien Mantach, of embezzling $1.5 million in the election campaign funds.

Mr Guy says his party is “white hot” with anger, and that the funds could’ve made a difference in last year’s election.

In Melbourne, Rachael Brown reports.

RACHAEL BROWN: The Liberal Party says discrepancies were uncovered during a forensic audit of the party’s funds after last year’s state election loss.

The party’s former state director Damien Mantach is being accused of stealing $1.5 million over four years, but the audit continues.

Mr Mantach has not responded to the ABC’s calls.

Liberal party members were called into a crisis meeting this morning, and heading in, the party leader Matthew Guy made no attempt to mask his feelings.

MATTHEW GUY: We are furious; we want our money back.

RACHAEL BROWN: The matter has been referred to the Victoria Police Fraud and Extortion Squad, which says it’s investigating the disappearance of funds, but can’t comment further.

Mr Guy says, if the allegations prove true, it’s a massive betrayal of trust.

MATTHEW GUY: An enormous part of our election war chest, enormous. People did a lot of work to get that. I mean, we have a fundraising team who’ve done a huge amount of work; they’re always under a lot of scrutiny as you can imagine, and a lot of pressure.

But they’ve done a huge amount of work. We’ve got a lot of supporters, a lot of branch people who have worked their guts out for this party. And for what it appears to be one individual to do this to us leaves us bitterly cold.

RACHAEL BROWN: The Liberal party leader says the funds could’ve changed last year’s election result, which saw Labor’s Daniel Andrews dismissing the Napthine Coalition government.

Denis Napthine, who led the Victoria’s first one-term government in 60 years, says the fraud allegation is shocking and bitterly disappointing.

The party’s new president, Michael Kroger, has released a statement saying, when the audit turned up suspicious transactions amounting to $1.5 million between 2010 and 2014, Damien Mantach was asked to explain himself.

It was after this discussion that the party’s administrative committee voted to refer the matter to police.

Mr Kroger admits there’s a weakness with the Liberal Party’s checks and balances.

MICHAEL KROGER: Yeah, well on this occasion they clearly failed. So yep, quite up front about that. I’ve only been in the job four months, as you know. This has been going on for four years, so you know, it should have been picked up before and wasn’t, unfortunately.

RACHAEL BROWN: But he says there won’t be a clean out of branch holders, that the alleged fraud didn’t extend to other employees, officials or office bearers, and was limited to the party’s Melbourne headquarters.

He says civil action hasn’t been decided on.

MICHAEL KROGER: We’re sensitive to a number of issues, including the fact the person involved has a wife and family, and there are other matters which we want to take into account. But yes, we’ll be recovering a good deal of the funds in a cooperative relationship with the person involved.

RACHAEL BROWN: Mr Kroger says he doesn’t know where the money’s gone.

And he’s hit back at a suggestion that this is in a similar vein to the trade union boss Kathy Jackson being forced to repay $1.4 million of misappropriated members’ funds.

MICHAEL KROGER: When the Liberal party becomes aware of a serious matter like this, what do we do?

We investigate it quickly, we report it to the appropriate authorities, who in this case will be the Victoria Police. We don’t hide it; we don’t ignore it; we deal with it.

On the other hand, it’s taken a royal commission at massive public expense bringing these union and Labor leaders kicking and screaming before the public to get any type of information from them at all, at massive public expense. And even now they want to sack the umpire.

RACHAEL BROWN: One commentator has told The World Today that there might be more to this than meets the eye.

Damian Mantach stepped down from the director’s job in March. A couple of years ago he was one of the senior Liberals secretly recorded during the police command crisis that led to Ted Baillieu resigning as premier.

The commentator says this audit and slur on a former power player in the executive committee might have more to do with the ongoing power struggle and factional rifts at the upper levels of the Victorian Liberal party.

ELEANOR HALL: Rachael Brown with that report.



news.com.au

Finger pointing begins over Liberals’ stolen cash

http://www.news.com.au/video/id-NwMjY0dzqkwzxK6FCG9JiP2ATp0m5WyG/Police-to-investigate-alleged-Vic-Lib-fraud

Vic detectives will investigate the alleged embezzlement of $1.5 million of Liberal party funds.

Victorian detectives will investigate the alleged embezzlement of $1.5 million of Liberal

Victorian detectives will investigate the alleged embezzlement of $1.5 million of Liberal party funds by former state director Damien Mantach. Source: AAP

VICTORIA’S Liberal Party didn’t lose the 2014 election because its then state director stole $1.5 million from campaign funds, current state president Michael Kroger says.

Former Victorian Liberal director Damien Mantach has admitted to stealing money from the party over a four-year period going into the state election.

On a bad day for Mr Mantach, his Liberal Party email address was also found in the leaked Ashley Madison database, although there is no evidence he specifically signed up to the site.

Mr Mantach, who was on a $200,000-a-year salary, allegedly used the money to pay his mortgage, fund his lifestyle and build a half-a-million dollar share portfolio, the Herald Sun reports.

When asked about the alleged theft, his wife Jodie Mantach told the paper she no longer wants “anything to do with him”.

Mr Kroger said the party did not lose the election because of a lack of funds.

“The ability of the party to continue to operate and fund its campaigns has not been compromised,” a party statement said.

Mr Kroger said the party was strengthening its financial controls after the details of the theft became clear.

The $1.5 million theft has been referred to Victoria Police and Mr Kroger is hopeful some of it can be recovered.

The Ocean Grove home owned by former Liberal Party state director Damien Mantach.

The Ocean Grove home owned by former Liberal Party state director Damien Mantach. Source: News Corp Australia

The Liberals’ Tasmanian division president Geoff Page later confirmed Mr Mantach’s history of questionable spending dating back to 2008.

Mr Mantach repaid almost $50,000 in “personal expenses” before leaving his position with the Tasmanian branch to move to Victoria. “Mr Mantach had in 2008 a liability for personal expenses to the Tasmanian division totalling $47,981.78, which was fully repaid by Mr Mantach to the division upon his departure in March of that year,” Mr Page said in a post on the Tasmanian Liberals’ Facebook page.

Finger pointing has begun within the party, with the Liberals’ federal director — and husband of Prime Minister Tony Abbott’s chief-of-staff, Peta Credlin — Brian Loughnane reportedly being blamed for his appointment.

A RORTER’S DREAM JOB

As state director of the Victorian Liberal Party, Mr Mantach’s role was a rorter’s dream.

He had the final say on budget line items, such as polling research, that the party treasurer was not allowed to see. It allowed him to bill the party with invoices — some created on his work computer — for jobs that did not exist.

Mr Mantach resigned after the 2014 state election loss but had to face the music on Monday when the party’s lawyers called him to a meeting.

His lawyer arrived on Tuesday in an attempt to cut a deal when the party thought he had stolen around $800,000.

The Liberals wanted complete disclosure and Mr Mantach allegedly spent hours with officials on Wednesday explaining the full extent of his theft.

“We feel profoundly betrayed and terribly disappointed with what’s happened,” Mr Kroger told reporters on Thursday.

“It appears it was only Damien involved. If the police find others, fine, but we’re not aware that anyone at the party head office or any officials had any involvement at all.” Victorian Liberal leader Matthew Guy said members were “gutted” after raising funds for the state and federal election campaigns. “The party is furious, we want our money back, we want this matter sent to the police, and we will be doing everything we can to ensure that justice is done,” he said.

The Independent Broad-based Anti-corruption Commission was called on to examine secret phone recordings of senior Liberal figures in 2013, including Mr Mantach, though it was found an investigation was not warranted.

“I know Damien Mantach well. He is a person of integrity. So let’s see where this investigation goes. He has my confidence,” Tony Abbott said at the time when he was opposition leader.

Asked about the $1.5 million theft on Thursday, Prime Minister Abbott said it was a matter for the Victorian division of the party.

Mr Mantach did not respond to attempts to contact him on yesterday.

Victoria Police have launched an investigation.

The Prime Minister’s chief-of-staff Peta Credlin and husband Brian Loughnane. The Liberal

The Prime Minister’s chief-of-staff Peta Credlin and husband Brian Loughnane. The Liberal Party’s federal director is being blamed for appointing Mr Mentach. Source: News Corp Australia


Roger Rogerson and Glen McNamara trial (for murder of Jamie Gao )

Featured


update 14/8/15

smh.com.au

Barrister Charles Waterstreet probed for contempt of court over social media posts in McNamara and Rogerson murder trial

Louise Hall
Charles Waterstreet (left) arrives at the murder trial of Roger Rogerson and Glen McNamara in July.Charles Waterstreet (left) arrives at the murder trial of Roger Rogerson and Glen McNamara in July. Photo: Ben Rushton

High-profile criminal barrister Charles Waterstreet may face contempt of court charges for alleged social media posts which had the potential to prejudice the trial of his client Glen McNamara and co-accused Roger Rogerson.

On Thursday, Justice Geoffrey Bellew formally vacated the trial of Mr McNamara and Mr Rogerson for the murder of university student Jamie Gao during a botched drug deal.

The trial was scheduled to go ahead on Monday, but will not proceed until early next year.

Justice Bellew ordered the registrar of the Common Law Division of the Supreme Court to investigate Mr Waterstreet for contempt of court.

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On Tuesday, as pre-trial hearings were under way, Justice Bellew was told of a post on an Instagram account in Mr Waterstreet’s name, being charleswaterstreet.

The post contained a picture of Mr Waterstreet and another man and was taken in the vicinity of the Darlinghurst Supreme Court.

It had a caption, the contents of which Justice Bellew has suppressed.

Mr Waterstreet told Justice Bellew he did not post the picture and caption.

The court also heard a Twitter account in Mr Waterstreet’s name at @ccwaterstreet posted a link to the Instagram post.

Justice Bellew said he had “no practical alternative” to vacate the trial despite the considerable expense to the taxpayer.

He said it was no fault of the court, the “criminal justice system”, the Crown, Mr Rogerson’s solicitor and barrister or Mr McNamara’s solicitor and said each had worked diligently to ensure the trial proceeded efficiently.

“To say the vacation of the trial is unfortunate would be a gross understatement,” he said.

But he said Mr McNamara, through no fault of his own, was suddenly left without a barrister on Wednesday morning, just days from the opening date, and to proceed would potentially rob him of a fair trial.

Former Liberal NSW Attorney-General Greg Smith, SC, appeared in court, saying Mr McNamara wanted to retain him and Mr Waterstreet’s junior counsel Peter Lange. However, he would not be able to take on the case until next year.

Mr Rogerson’s barrister, George Thomas, argued strongly for the trial to be put back for only two weeks, arguing a competent and experienced barrister who is available to take on the case could get across the brief in that time.

He also accused Mr McNamara of instructing Mr Waterstreet to act in a way that caused the case to go off the rails.

However, Justice Bellew dismissed any suggestion Mr McNamara was behind Mr Waterstreet’s alleged actions.

He also said any barrister taking over the case would need much more than two weeks to get across the volumes of material to be tendered during the trial.

Mr Smith said he was hoping the Legal Aid Commission would approve his retainer.

Mr Thomas said that, as Mr McNamara’s defence was funded by Legal Aid, he did not have the luxury of choosing his own barrister and should take whoever was available.

Both Mr Rogerson and Mr McNamara have pleaded not guilty to the murder of Mr Gao in a storage unit in Padstow last year.

Following the revelation of the social media posts, Mr Waterstreet was given time to get legal advice. He consulted noted appeal barrister Tim Game, SC.

On Wednesday, Mr Waterstreet sought the court’s leave to withdraw from the case.

Mr Game, appearing for Mr Waterstreet, told the court he had advised his client to step down, although this did not constitute an admission of wrongdoing.

Crown Prosecutor Chris Maxwell, QC, and Mr Game agreed Mr Waterstreet should be referred to the registrar for investigation.

In referring Mr Waterstreet, Justice Bellew ordered the registrar to seek and adhere to the “advice of the Crown Solicitor as to whether proceedings for contempt should be taken against Mr Waterstreet”.

He also ordered the registrar to inform the Attorney-General, Gabrielle Upton.


Roger Rogerson and Glen McNamara murder trial of Jamie Gao hearing to begin for the 2nd time on August 18 2015

 These 2 pathetic (and stupid) coppers go on trial today TRIAL aborted on the 2nd day! for the alleged botched drug theft gone wrong resulting in the murder of Jamie Gao

UPDATES daily on this trial here background posts click here http://aussiecriminals.com.au/2014/05/26/roger-rogerson-and-glen-mcnamara-charged-with-murder-of-jamie-gao/

A pictorial of the infamous ex copper Roger the Dodger is here http://aussiecriminals.com.au/roger-rogerson/


TAKE 2

Roger Rogerson and Glen McNamara murder trial of Jamie Gao hearing to begin on August 18 2015

Paul Bibby

New trial date: former detectives Glen McNamara and Roger Rogerson will appear before the NSW Supreme Court on August 18.New trial date: former detectives Glen McNamara and Roger Rogerson will appear before the NSW Supreme Court on August 18. Photo: Rocco Fazzari

Former detectives Roger Rogerson and Glen McNamara will face a new trial over the murder of Sydney student Jamie Gao on August 18, following the discharge of the jury in their first trial.

Justice Geoff Bellew told the NSW Supreme Court that the new trial date for the pair had been confirmed, lifting a non-publication order made on Tuesday.

Mr Rogerson, 74, and Mr McNamara, 56, are accused of being part of a “joint criminal enterprise” to murder Mr Gao, 20, in a southern Sydney storage unit on May 20 last year.

Twenty-year-old Jamie Gao was killed on May 22, 2014.Twenty-year-old Jamie Gao was killed on May 22, 2014. Photo: Facebook

It is alleged that they stole 2.78 kilograms of the drug ice from him and then dumped his body off the coast of Cronulla. It was found six days later.

Half way through the trial’s second day on Tuesday, Justice Bellew discharged the 15-member jury for legal reasons which cannot be disclosed.

Both accused have pleaded not guilty to murder and drug supply.

Counsel for Mr McNamara, Charles Waterstreet told the jury on Tuesday that Mr Rogerson had been solely responsible for the murder.

He said the 74-year-old had shot Mr Gao twice in the chest and then threatened to kill Mr McNamara and his family if he did not help him to cover up the crime.

No evidence was presented to support these claims before the jury was discharged.

Counsel for Mr Rogerson, George Thomas, did not have the opportunity to address the jury before members were discharged.

On Tuesday Justice Bellew said the NSW sheriff had confirmed that a court was available on August 18 to begin a new trial, and he formally set down that date.


TWO former detectives charged with murdering a Sydney student will go on trial before a jury today. Glen McNamara and Roger Rogerson face charges of murdering 20-year-old UTS student Jamie Gao in May last year. They are also accused of drug supply. Their trial at the NSW Supreme Court at Darlinghurst is expected to get underway later this morning. Police have alleged the pair lured Gao to a storage unit in Sydney’s southwest, with Mr Gao attending the meeting carrying almost three kilograms of the drug ice, or crystal methamphetamine.

Roger Rogerson.

Roger Rogerson. Source: DailyTelegraph

Former detective Glen McNamara being escorted to prison after his arrest.

Former detective Glen McNamara being escorted to prison after his arrest. Source: News Corp Australia

Police have alleged the trio were spotted on CCTV entering the storage unit. Ten minutes later, cameras allegedly captured McNamara and Rogerson leaving, dragging a surfboard bag. Mr Gao’s bound body was found floating in waters off Sydney six days later. Both McNamara and Rogerson deny the charges and entered not guilty pleas at a previous hearing. In January they waived their right to a committal hearing in order to get to trial as soon as possible.

Terror diverts focus from Mafia ‘board of directors’


Nick McKenzie, Richard Baker, Michael Bachelard

Inside a mafia ecstasy sting

The Calabrian mafia was responsible for the world’s biggest ecstasy importation in 2007. As Fairfax Media and the ABC can reveal, it didn’t go to plan…

Italy’s top anti-Mafia prosecutor and Australian police are warning that the massive diversion of law-enforcement resources to combat terrorism is eroding the fight against the Mafia and other serious organised crime groups.

Australian authorities have failed for decades to dismantle the “board of directors” of Calabrian Mafia godfathers across Australia, allowing them to entrench their drug trafficking operations, build alliances with outlaw bikie gangs and infiltrate government and police agencies.

The Mafia's reach in VictoriaThe Mafia’s reach in Victoria.

A 2013 multi-agency police report warns “Ndrangheta Transnational Australian Groups” are posing an extreme risk to Australia.

Italian anti-Mafia magistrate Dr Nicola Gratteri has also warned that the Australian government has risked allowing these organised crime groups to prosper.

“When social alarm is provoked over terrorism, governments are forced to invest in terrorism and not in Mafia … the Mafia celebrates because they know there are fewer resources,” Dr Gratteri said.

The Mafia's reach in NSW.
The Mafia’s reach in NSW.

Senior police across Australia have confidentially backed these comments, saying that while terrorism was a clear priority, the focus on suspected jihadists had meant the shifting of important resources away from the fight against organised crime.

Three weeks ago, Dr Gratteri oversaw an international anti-Mafia operation, codenamed Santa Fe, which attacked the operations of the powerful Alvaro Mafia clan, seizing tonnes of cocaine and making dozens of arrests.

Confidential Italian and Australian police files state that the Alvaro clan has powerful cells operating in Australia, allegedly headed by Adelaide construction figure, Paul Alvaro, 64, and a NSW man. Mr Alvaro did not answer specific questions, but he denies any links to organised crime

The pair is aligned to a handful of figures in capital cities across the nation and in Griffith, NSW, who – according to a police assessment – operate as “an executive Board of Directors” for the Calabrian Mafia, or “Ndrangheta”.

The board “comes together on an ad hoc basis particularly in times of crisis or when the low profile of [the Calabrian Mafia], so carefully cultivated and jealously protected, is threatened,” police reports say.

NSW Police intelligence lists “the main” Calabrian Mafia clans as “the Sergi family, Trimboli family, Romeo family” who are all “based predominantly in the Griffith area.” Only a very small number of members of these families are engaged in crime and there are many Italian families who share these common surnames but who are not connected to the Calabrian Mafia.

“The criminal activities engaged in by this network have been engaged in for decades with a high level of success. Members of the network have occasionally been apprehended and imprisoned, but on the whole, internal wrangling appears to have exacted a higher toll, as family members are murdered not infrequently,” says one NSW police assessment.

In Victoria, court files allege that wealthy Melbourne businessman, Giuseppe “Bebbe” Manariti, was linked to the world’s biggest ecstasy importation in Melbourne in 2007.

Commonwealth prosecutors have alleged that Mr Manariti was briefed by the Mafia importers, stating that he was “interested in unfolding events” linked to the massive shipment.

Mr Manariti, who has never faced criminal charges, is a close associate of alleged Melbourne Mafia boss Tony Madafferi and the pair, along with deceased Mafia leader Rosario Gangemi, are considered by police to have previously formed a “trinity” that directed the Calabrian Mafia’s Melbourne operations.

Both Mr Manariti and Mr Madafferi were previously identified in a top secret 1995 anti-Mafia operation as members of the group also known as the Honoured Society.

Mr Madafferi could not be reached for comment but has previously denied any involvement in organised crime. Mr Manariti could not be reached for comment.

The police files also reveal that the Calabrian Mafia has built close ties to outlaw motorcycle gangs (OMCGs), including the Rebels and Bandidos.

“This is particularly evident with identified connections to the Sydney and North Coast Bandidos OMCG and the Canberra and Batemans Bay Rebels OMCG. There is also intelligence of links to the Finks OMCG through associates.”

Dr Gratteri’s warning about the diversion of resources away from the organised crime fight echoes a classified National Crime Authority report in 2003.

“It is suggested that they [Australia’s Mafia cells] will neither decline nor cease their activities in the foreseeable future due to their long entrenched history in criminality in Australia, the steady market demand for cannabis and other illicit drugs and the diversion of law enforcement efforts to other areas.”

Watch part two of a joint Fairfax and ABC Four Corners mafia investigation on ABC1 8.30 PM Monday.

Judge bribes, military arms sought: the Mafia’s alleged Australian operations


Nick McKenzie, Richard Baker, Michael Bachelard

An Australian Mafia boss allegedly paid $2.2 million in bribes to  judges to get lighter jail sentences, and the Mafia have approached defence force personnel to supply them with military grade weapons, top-secret police intelligence reports reveal.

The reports also reveal the price of some food – including the price of certain types of seafood in Sydney – may be more expensive due to Mafia control of the supply chain across Australia.

Fairfax Media can also reveal that Jupiter’s Casino on the Gold Coast has become a key gambling site for Mafia figures banned over money laundering concerns from Crown Casino in Melbourne and Star City in Sydney.

Two top crime figures, including a Mafia godfather, banned from the Sydney and Melbourne casinos recently gambled large amounts at Jupiter’s, effectively rendering anti-money laundering efforts useless.

A search this month of the business holdings of all the key Mafia bosses in NSW, Victoria and South Australia also reveals their continuing control over multimillion-dollar wholesale, construction and farming businesses, including a major winery and several large fruit orchards.

A joint Fairfax Media and ABC Four Corners probe has obtained a series of confidential Australian police reports written and circulated to state agencies between 2003 and 2014.

The reports provide startling revelations about the depth of Calabrian Mafia’s infiltration into Australian life and the ambitions of the criminal group.

They reveal the group known as ‘Ndrangheta, or the Honoured Society, continues to control both legitimate and illegitimate businesses, with money earned both from the drug trade and from stand-over and extortion within pockets of Australia’s fresh food trade, trucking and construction industries.

A 2013 file, circulated among agencies, warns that the Mafia poses as “extreme” organised crime risk to the nation.

It echoes similar warnings made in a 2003 Australian Crime Commission assessment that revealed the Mafia had “infiltrated members into, or recruited people from, public organisations, government and law enforcement agencies with the lure of money”.

“[Mafia] family associates are employed in many areas of government enterprise, as well as in the telecommunications industry; bookmaking/racing; car dealerships/car repairs and hydroponic shops,” the 2003 report states.

In Victoria, Mick Gatto is named as a crime figure who works closely with the Calabrian Mafia while running his own crime syndicate.  

“Mick Gatto has shown a high awareness of law enforcement methodology and has taken a proactive approach in accessing corrupt law enforcement personnel and information to protect his ventures,” one report says.

In NSW, another Italian crime boss “is involved in a number of legitimate businesses … including car dealerships and night clubs, and is associated with at least one ex-AFP member and one corrective services person”.

NSW police intelligence also describes how detectives had discovered how “Italian Organised Crime members have actively approached members of the Australian Defence Forces for the purpose of acquiring firearms and ammunition”.

The NSW police also gathered information in 2003 that Mafia figures in Griffith, NSW – the group’s traditional stronghold – had been “receiving information from a person connected to the police in Griffith and the court”.

“It is alleged that a Sydney based IOC [Italian Organised Crime] member received light sentences in the past because he paid off [Sydney] judges, costing approximately $2.2 million.

“The protection provided to IOC members by other members comes in many forms, ranging from the simple criminal code of silence or perjury, to more sinister acts involving corrupt influence [and] abusing a position of responsibility.

“IOC groups in NSW have infiltrated members into, or recruited people from, public organisations, government and law enforcement agencies with the lure of money.”

Fairfax Media has recently spoken to senior law enforcement sources who identified a judge allegedly involved, saying he has since left the bench.

The NSW police have also discovered “information [that] suggests a monopoly exists … at the Sydney Fish Markets where private arrangements need to be made for their purchase”. The report says these arrangements allegedly involve cartel behaviour, including price fixing and threats of violence.

Police have warned that Mafia identities maintain control over the food supply chain via their ownership of farms, wholesale businesses and transport and freight firms.

Reception centres owned by Mafia bosses in Adelaide and Melbourne have been hired by unwitting police and politicians to hold functions.

An intelligence brief circulated to police across Australia in 2011 states: “The Calabrian Mafia … readily uses fruit trucks to transport cannabis to the Melbourne Fruit and Vegetable Market [from Griffith, NSW and other regional sites] to be further distributed. The trucks usually have the cannabis hidden among containers of fruit and vegetables.”

In 2003, NSW police confidentially warned that: “Investigations developed intelligence of IOC figures involved in both the Sydney fruit markets at Flemington and fish markets, as well as the Belconnen markets in Canberra”.

“[Wholesale food] markets continue to provide controlled linkages to the interstate trucking and transport industry. Again, elements of the transport infrastructure are controlled by families with connections to IOC elements. There is continuing intelligence of the exploitation of this type of freight for trafficking illicit commodities.

“The exploitation of the markets and interstate freight remains a significant area for environmental hardening and law reform.”

The revelation that Mafia figures banned from NSW and Victorian casinos over money laundering concerns are simply heading to the Gold Coast casino suggests another major weakness in anti-organised crime measures.

Police have previously warned that Mafia “identities were using casinos to launder funds through, with significant money movements through Jupiter’s Casino and Crown Casino Melbourne”.

linked with Mafia-Labor expels figure Victorian ALP delegate Michael Teti


Nick McKenzie, Richard Baker, Michael Bachelard
Frank Madafferi and Michael Teti.
Frank Madafferi and Michael Teti.

The Labor party will expel Victorian ALP delegate Michael Teti after revelations the Moreland Councillor allegedly supplied a gun to a Mafia henchman who then used it to threaten a woman, and moved funds on behalf of convicted crime boss Frank Madafferi.

Mr Teti, who was recently found guilty of weapons offences, secretly spent months working as Madafferi’s business manager in the full knowledge that  Madafferi was an underworld boss with a lengthy criminal record for violent crimes and drugs.

Mr Teti’s vehicle has also been searched multiple times by police, who have discovered drug paraphernalia — believed to be an ice pipe — and, on two separate occasions, ammunition.

Documents obtained during a major Fairfax Media and Four Corners investigation reveal that Mr Teti acted as an adviser and gofer for Madafferi while the Mafia boss was facing serious drug trafficking charges, for which he was recently jailed.

During this period, Mr Teti also secured one of Frank Madafferi’s associates – who subsequently was charged with criminal offences over a violent bashing – a job in federal Labor Senator Mehmet Tillem’s office. There is no suggestion Mr Tillem, who is no longer a senator, knew that Mr Teti or his now former employee had close ties to Madafferi.

Despite knowledge within the Labor party of Mr Teti’s ties with crime, the ALP invited him in March to the party’s state conference, allowing him to vote on policy and party issues.

The ALP scrambled to expel Mr Teti on Friday after Fairfax Media sent Premier Daniel Andrews a series of questions about Mr Teti’s behaviour.

A spokesman for the Premier said in a statement: “We have been informed that the State Secretary, Noah Carroll, has lodged the necessary documents to seek the expulsion of Mr Teti from the Victorian Branch of the Australian Labor Party.”

The revelations about Mr Teti’s acitivities raise further questions about the Mafia’s infiltration of Australian politics.

Last year, Labor Roads and Ports minister Luke Donnellan accused a number of Liberal backbenchers of having “lips … dripping with blood from criminals” after revelations that Mafia members had organised political fundraisers for the party as recently as 2013.

Last week, Fairfax Media and Four Corners revealed police reports documenting how Mafia figures, including alleged crime bosses closely linked to Frank Madafferi, had infiltrated the Liberal Party as part of efforts to get Madafferi a visa.

Madafferi, whose criminal convictions for extortion, drugs and Mafia activity date back to the 1980s, appointed Mr Teti as his business manager in around 2013.

Confidential documents show that Mr Teti was handling Madafferi’s finances, moving money for his fruit shop businesses, Mondo Fruit, placing advertisements for Madafferi in Italian newspapers and importing foodstuffs for the crime boss from Italy. Madafferi has used his fruit shops as a base for his drug trafficking although there is no suggestion Mr Teti is personally involved in the illegal trade.

The most serious allegations involving Mr Teti relate to a gun he owned, which was allegedly used by a man called Michael Villeva, who also works for Madafferi.

Mr Villeva is suspected of using Mr Teti’s weapon to threaten a woman in Doreen in Melbourne’s north-east.

Mr Teti did not respond to specific questions about his relationship with Madafferi or Mr Villeva. But in a statement denying any wrongdoing, Mr Teti’s lawyer, Stefanie Chillico, said Mr Teti’s ties to Madafferi and Villeva were confined to a “professional relationship he had with them” while Mr Teti worked at a legal firm. Several well-placed sources said Mr Teti’s explanation was false.

Mr Teti controls two local ALP branches in Melbourne’s northern suburbs, and has had the ability with his allies in Labor’s right faction to influence the nomination of political candidates and ALP policy.

The ALP failed to take action against Mr Teti after he was found guilty late last year of weapons offences, including possessing a flick knife and carrying a loaded firearm in public. However, the full extent of Mr Teti’s activities has never been publicly revealed until now.

Fairfax Media can also reveal that Mr Teti has provided his vehicle to another alleged criminal and associate of Frank Madafferi, after which it was searched by police on Lygon street. Police found bullets and paraphernalia for using methylamphetamine inside Mr Teti’s car.

In 2012, local council records reveal that Mr Teti received political donations from Frank Madafferi’s brother, Tony Madafferi. Tony Madafferi was recently banned from Victoria’s Crown Casino by the Victoria Police chief commissioner because of his alleged organised crime ties.

Mr Teti has also been a regular visitor to one of Frank Madafferi’s Melbourne properties.

Federal police Detective Superintendent Matt Warren said Frank Madafferi “has a very high standing within the ‘Ndrangheta [Calabrian Mafia] in Melbourne,” and that any political figure needed to “be very careful in dealings with Francesco Madafferi”.

“It’s a real risk for them to be associated with organised crime figures.”

Mr Teti was found guilty last December of several weapons offences. He told police that the weapons were in his car because he planned to go on a hunting trip, which was later cancelled.

Mr Teti sought to avoid a formal finding of guilt, but Magistrate Michael Wighton found his conduct was “too serious”.

While the magistrate found Mr Teti did not have “criminal intent” when he left the weapons in his car, Mr Wighton said the firearm could have been obtained by others.

Mr Teti received a six-month good behaviour bond, with Mr Wighton saying Teti has “very good character” and his offending should not impede his “ambitions in public service”.

Aussie Peter Scully to face Philippines court on ‘depraved’ paedophilia charges; videos allegedly featured rape, torture


By North Asia correspondent Matthew Carney

An Australian man will face a Philippines court tomorrow to enter a plea on paedophilia charges described by authorities there as “depraved”.

Peter Scully allegedly ran an international paedophile ring from Mindanao in the Southern Philippines that raped, tortured and murdered children.

One victim was only 18 months old.

WARNING: This story contains graphic details which may be disturbing for some readers.

Scully first moved to Cagayan de Oro on the island of Mindanao in 2011.

Exploiting the poverty and desperation right on his doorstep, Scully approached Arlene Loyola and offered to give her eight-year-old daughter education and food.

Ms Loyola accepted the offer, but after two weeks she began to worry.

“I prayed and God told me to get her away from Scully and I did,” Ms Loyola told 7.30.

When Ms Loyola got her daughter back she had been bashed and badly bruised. Scully had repeatedly drugged and raped the girl.

Ms Loyola blames herself.

“I feel so ashamed and asked forgiveness from my child because she suffered so much,” she said, sobbing.

“She just wanted to go to school.

“I can’t sleep; I just can’t stop thinking about what happened to her.”

Customers paid $10,000 to view torture videos

But this was just the tip of the iceberg of Scully’s depravity.

Officers of the Philippines Bureau of Investigation showed 7.30 a dark old house with high walls in another part of Cagayan de Oro.

It was here Scully made the videos called The Destruction of Daisy.

He was selling the videos to online customers around the world for up to $10,000 a view.

We are pretty much sure that we have a very solid case and that he will be away for good.

Prosecutor Eric Nuqui

The full details of what happened at this house are too shocking to reveal.

But Angelito Magno, one of the lead investigators, gave 7.30 an insight.

“In one of these videos was an 18-month-old baby girl who was hanged upside down,” he said.

“She was crying all the time she was being tortured.”

Demand was so great for these sickening videos that six other foreigners, mainly from Europe, started to fund Scully.

But one made-to-order video proved to be Scully’s undoing.

In it, two girls, one 12 years old and the other 13, were forced to dig their own graves while being raped.

Mr Magno said the girls eventually led them to Scully.

“The two girls were able to escape and seek police assistance while they were still wearing chains, chains to their necks,” he said.

Mr Magno was part of the international team that arrested 51-year-old Scully in February, charging him on multiple counts of sexual abuse, cyber sex, torture, rape, human trafficking and murder.

In Manila, an investigation team is gathering all the evidence before the trial formally starts later this year.

They now have seven victims under witness protection who will testify against Scully in court.

Prosecutors confident Scully will go ‘away for good’

Eric Nuqui works at the Philippines Investigation Bureau and will be one of the lawyers who will be leading the trial against Scully.

“With the overwhelming evidence we have and with the prosecutors handling the case, we are pretty much sure that we have a very solid case and that he will be away for good,” he told 7.30.

The team in Manila and the Australian Federal Police are now working to identify and prosecute Scully’s customers around the world.

They have evidence that an Australian man offered Scully about $2,500 to rape a 13-year-old girl.

While the capture of Scully has been a success for the Philippines Bureau of Investigation, the reality is, with limited manpower and resources, they are struggling to cope with the flood of paedophiles entering the Philippines.

The Australian Federal Police say 250 Australians convicted of child sex offences have travelled to the Philippines in the last four years.

But Philippines authorities say they know of only 10.

Mr Nuqui said there was a problem in coordination in the Philippines.

“As far as I’m concerned, I’m yet to receive information,” he said.

“Maybe they’re providing information to other (Philippines) agencies and we are not able to access it.”


Philippines police arrest, prepare to deport Australian fugitive accused of child molestation

Posted 27 Mar 2015, 11:24am

An Australian fugitive wanted for molesting a young girl in Australia has been arrested in Manila and will be deported from the Philippines.

Philippines immigration officials stopped 39-year-old Roy Woodward upon his arrival in an airport in Manila from Sydney.

An alert posted by Australian Interpol said Mr Woodward had been accused of sexually abusing a 12-year-old girl and was set for sentencing by a local Australian court.

Following the arrest, an immigration intelligence official said Manila should keep a closer watch out for paedophiles and fugitives.

Another Australian, Peter Gerard Scully, is facing charges for the murder of a 12-year-old girl and sexual abuse of 11 children in the southern Philippines.

The Melbourne man is the key suspect in one of the most horrifying paedophile rings uncovered by police in the Philippines.

Mr Scully allegedly spent years sexually abusing and torturing young children and streaming his alleged crimes online.

If he is found guilty he will face life in prison.

The National Bureau of Investigation has launched a manhunt for four foreigners believed to have been working with Mr Scully since 2011.

The Philippines is a major hub of the billion-dollar global child cybersex industry due to its widespread poverty and legal loopholes.

The Philippines Justice Department secretary Leila de Lima last year said online child abuse was the leading cyber-related crime in the Philippines and made up 46 per cent of more than 200 cases.


Australian Federal Police says 250 Australians with child sex convictions travelled to Philippines in last four years

Updated 13 Apr 2015, 5:02pm

About 250 Australians with child sex convictions have travelled to the Philippines in the last four years, the Australian Federal Police (AFP) has revealed.

Filipino police are currently pursuing a case against Australian man Peter Gerard Scully for what they allege are some of the worst child sex offences in the nation’s history.

The AFP was involved in the investigation and arrest and says 250 known Australian child sex offenders travelled to the Philippines in the past four years.

A spokesman has told the ABC that Australia alerts Filipino authorities when a sex offender boards a flight, but it is up to them whether to refuse entry.

Scully, 51, who has no previous convictions for child sex abuse, was arrested and charged with sexually abusing 11 children aged between 18 months and 13 years.

He allegedly spent years sexually abusing and torturing young children and streaming his crimes online, where the AFP says he charged between $US100 and $US10,000 for the videos he filmed.

The Melbourne man has also been charged with the murder of one of his alleged victims, a 12-year-old girl, along with rape, torture, human trafficking and violating cyber laws.

On Saturday, authorities in the Philippines said Scully was working with foreign accomplices in his child pornography operation and launched a manhunt for four foreigners believed to be involved.

The Australian embassy held an emergency meeting late last week in relation to the case.

Editor’s note 13/4/2015: An earlier version of this story said 250 Australian sex offenders had travelled to the Philippines in the last year.

Nomads Motorcycle Club raids sparked by threats of blackmail and payback against two SA men


Standover 101, Give me 30 grand (happens to be the price for a nice harley) Give me your bike, and give me your car….fill in the rest.

Great to see the cops scooping these steroid pumped bludgers off the streets one by one. If we allow them to just come and standover folks demanding cash and to take  possessions we will never ever win the war against them.

The Nomads Hardcore tactics

Chief Court Reporter Sean Fewster
The Advertiser
June 01, 2015 5:19PM

THE two-state raids that smashed the powerful Nomads Motorcycle Club were sparked by threats of blackmail, payback and retribution against two SA men, a court has heard.

Prosecutors today asked the Adelaide Magistrates Court to remand two of the men in custody, despite their being granted bail when arrested in NSW last week.

Sandi McDonald, SC, prosecuting, said the allegations against the duo and their 10 co-accused were some of the most serious examples of bikie-related crime.

“In November, these men flew in from NSW, met up with the complainant, took him to the Adelaide High School oval and demanded $30,000, his car and his motorbike,” she said.

“He was taken to a motel where he was threatened, assaulted and told he was going to die.

Police arrest man during a bikie gang crackdown
http://www.adelaidenow.com.au/video/id-BjOHRjdTqruBV11eXa-n7ClDythZuhfj/Police-arrest-man-during-a-bikie-gang-crackdown/

“This defendant, a high-ranking member of the gang, threatened to slit his throat (and) cut his eyes out … he held the complainant’s head down and aimed a firearm at him.”

The man, whose identity is suppressed, is one of eight Nomads to face court today in the wake of last week’s raids by SA and NSW police.

Four members faced court last week, and one was supported by the gang’s national president, Sleiman “Simon” Tajjour.

Six more were extradited from Sydney on Friday — they did not apply for bail today and were remanded in custody until August.

One of the Nomads who faced court in Adelaide today, with a supporter.

One of the Nomads who faced court in Adelaide today, with a supporter.

The remaining two men travelled to Adelaide today under bail agreements imposed by the Paramatta Magistrates Court following the raids.

Each has yet to plead to a raft of blackmail, assault and threaten harm charges taking place at locations across Adelaide between November 2014 and March this year.

A final co-accused remains at large and is the subject of an arrest warrant.

The identities of the victims, and any information which would tend to identify them, are suppressed by order of the court.

One of the Nomads who faced court in Adelaide today.

One of the Nomads who faced court in Adelaide today.

Under SA law, a person charged with bikie-related offending is automatically banned from receiving bail unless they can show there are special circumstances warranting their release.

Today Michael Dadds, for the first of the two bailed men, said his client’s liberty should continue so he could return to Sydney, continue working and continue caring for his two children.

He said his client had severed his ties with the Nomads.

“He had been attempting, for some time, to disassociate himself from the club and, in January, he successfully did that … it was a delicate process,” he said.

A member of the Nomads Motorcycle Club being extradited from NSW.

A member of the Nomads Motorcycle Club being extradited from NSW.

“His lawyer in Sydney subsequently made inquiries with NSW police with a view to establishing how best to go about, in a formal way, ensuring that disassociation was noted.”

Mr Dadds said his client had attended a police station and signed a statutory declaration about his disassociation — “one of, if not the first” NSW bikie to do so.

He said the court should not place great weight on the allegations made by the complainant.

“The allegations are denied and there is a real question, in this case, about the reliability of the complainant,” he said.

A member of the Nomads Motorcycle Club being extradited from NSW.

A member of the Nomads Motorcycle Club being extradited from NSW.

“His allegations are uncorroborated … these allegations of blackmail and intimidation all rely on someone who is unreliable.”

Ms McDonald said that was not the case, as police had sourced CCTV footage from Adelaide Airport, the high school and the motel that matched the complainant’s account.

She said the court should not place great weight on the man’s claims of having disassociated from the Nomads.

“What I have been advised, through police in NSW, is that this defendant was charged with consorting offences and, during his police interview, claimed he had disassociated,” she said.

A member of the Nomads Motorcycle Club being extradited from NSW.

A member of the Nomads Motorcycle Club being extradited from NSW.

“Police asked him to fill in one of these forms, which were being piloted at that stage, and he did so.

“So it occurred in very contrived circumstances where this defendant had very vested interests … he did what he was told, when it suited him, when it was in his best interests.”

Magistrate Jayne Basheer refused the man bail and remanded him in custody until August.

Paul Mazurkiewicz, for the second man, said his client be allowed to remain at liberty because, on the police version of events, he “played a lesser role” in the alleged offending.

He said his client was barely mentioned in the complainant’s statements to police and, when he was, it was him leaving a room or standing nearby while others uttered threats.

“All these allegations of gouging out eyeballs, firearms, being held down on beds, threats, demands for money, they don’t involve my client,” he said.

Mr Mazurkiewicz said the man who faced court on Friday was the “mover and shaker” in the incident, as described by the complainant’s witness statement.

“The complainant says he saw my client leave the room before (the man who appeared on Friday) demanded he continue to tell the Nomads he was not able to come up with the $30,000, but he still had to pay (that man) the $30,000,” he said.

“(That man) also told the complainant if he ever told anyone about it, he would kill him.

“It would appear (that man) was on a frolic of his own and recruited other people to help him.”

He said his client had left the gang and now “faced consequences” as a result of that decision.

Ms McDonald said the man should be remanded in custody, saying he played far more than a “peripheral” role in the incident.

She said he had menaced the complainant physically, by standing close to him and raising his fists, and verbally by agreeing with and supporting threats made by others.

“It was not a stroll in the park — it was heated and animated,” she said.

Ms McDonald said the man was part of a 13-strong group that flew to Adelaide, threatened the complainant “as the first thing they did” and then “flew out the next day”.

“These people put themselves in the one per cent of the population that holds itself above the law and this is what they do — retribution and intimidation,” she said.

She said that, when the man was arrested, he was found to be in possession of a sawn-off .22 calibre rifle and a loaded magazine for an SKS assault rifle.

Magistrate Basheer remanded the man in custody overnight and will hand down her ruling on bail tomorrow.


12 Nomad outlaw bikie gang members arrested in SA and NSW

Twelve Nomad bikie gang members have been arrested and charged with a range of offences,

Twelve Nomad bikie gang members have been arrested and charged with a range of offences, including solicit to murder.

FOR nine months, police have tracked the Adelaide chapter of the Nomad outlaw bikie gang amid allegations of extortion within its own ranks.

Today, the gang is in shreds after being smashed by a two-state police operation, and eight South Australian Nomads, including two of the gang’s highest-ranking patched members, are in jail. A ninth is on the run.

Charges against a total of 12 people include soliciting to murder, kidnapping, blackmail and assault, and police say they have dealt the gang a “significant blow”.

The group only has 10 or 12 patched members in Adelaide and The Advertiser understands it has been established in SA for about a year.

Assistant Commissioner Paul Dickson said the SA president and sergeant-at-arms, as well as the NSW-based national vice president, were arrested as part of the operation. He said the victims were other members or associates of the gang.

“All of these offences were committed as a result of the victims not undertaking the required acts set out by the Nomads,” he said.

Mr Dickson said the allegations showed what outlaw bikies were capable of, especially as the offences were allegedly committed against their own.

“They are quite happy to harm the community and they are quite happy to harm their own members if it suits them,” he said.

He said there were 10 outlaw bikie gangs operating in SA, with about 300 members.

“About 25 per cent of OMGC members are in police custody or under some sort of condition, like parole,” he said.

High-ranking outlaw bikies arrested

Director of Litigation Research Unit at the University of Adelaide David Caruso said arrests of this scale send a clear message to the club.

“The police are obviously confident they have built a significant case to say that there are at least this number of people involved in a criminal enterprise,” he said.

“With the Nomads in South Australia, where the number is not many more than the group arrested, it at least sends a message from the police – which needs to be tested in court – that says they are operating in South Australia for criminal purposes.”

As part of the operation, more than 170 officers from SA and NSW conducted raids across the two states, with 18 Adelaide properties searched.

Police will allege the offences happened in SA between November 2014 and March 2015, and the 12 arrested people were either full members, nominees, prospects or associates of the Nomads.

“These are well-organised criminal gangs driven by a culture of self-interest and violence internally and within the community,” Mr Dickson said.

“This offending also demonstrates again the cost and risks linked with being a member of, or associated with, an OMCG.”

Five South Australians, aged between 24 and 50, were arrested in NSW and have appeared in court for extradition back to their home state. Another three South Australians – from Andrews Farm, Parafield Gardens and Pennington – were arrested in Adelaide and were in court on Wednesday.

Of the four NSW residents arrested, three will face extradition to Adelaide.

Those arrested are:

■ A Clearview man, 24, will appear in the Goulburn Magistrates Court today for an extradition hearing.

He will be charged in SA with solicit to murder, two counts of aggravated blackmail, participating in criminal organisation, aggravated assault causing serious harm with intent and aggravated kidnapping.

■ An Elizabeth North man, 26, will appear in the Goulburn Magistrates Court today for an extradition hearing.

Supplied Editorial

An alleged Nomad bikie gang member is arrested in NSW. Picture: NSW Police

He will be charged with aggravated assault causing serious harm with intent, false imprisonment, participating in criminal organisation and aggravated kidnapping.

■ An Andrew Farms man, 26, was charged with aggravated assault causing serious harm with intent. He appeared in the Adelaide Magistrates Court yesterday and was remanded in custody until August 4.

■ A Paralowie man, 50, will appear in the Goulburn Magistrates Court today for an extradition hearing.

He will be charged with aggravated assault causing serious harm with intent.

■ A Campbelltown man, 31, will appear in the Goulburn Magistrates Court today for an extradition hearing.

He will be charged with participating in a criminal organisation.

■ A Para Vista man, 40, will appear in the Goulburn Magistrates Court today for an extradition hearing.

Police-supplied images of the Nomad bikie arrests - this arrest takes place at Clearview.

Police-supplied images of the Nomad bikie arrests – this arrest takes place at Clearview.

Images of the arrest at Clearview.

Images of the arrest at Clearview.

He will be charged with aggravated assault causing serious harm with intent, false imprisonment and participating in a criminal organisation

■ A Parafield Gardens man, 37, was charged with aggravated assault causing serious harm with intent, false imprisonment, participating in a criminal organisation and aggravated kidnapping.

He appeared in the Adelaide Magistrates Court yesterday and was remanded in custody until August 4.

■ A Pennington man, 35, was charged with aggravated assault causing serious harm with intent, false imprisonment, participating in a criminal organisation and aggravated kidnapping.

He appeared in the Adelaide Magistrates Court yesterday and was remanded in custody until August 4.

■ A Sydney man, 30, has been arrested and following a court appearance will be extradited to SA to face two counts of aggravated blackmail, making aggravated threats to kill and cause harm, aggravated assault causing harm, blackmail and participating in a criminal organisation.

■ A 37-year-old man, from Kenthurst in NSW, was arrested and charged with making aggravated threats to kill and cause harm, aggravated assault causing harm and aggravated blackmail.

He has been bailed to appear in the Adelaide Magistrates Court on June 1.

■ A 30-year-old man, from Fletcher in NSW, was charged with making aggravated threats to kill and cause harm and aggravated assault causing harm.

He is expected to appear at an extradition hearing in NSW today.

■ A 26-year-old man, from Merrylands West in NSW, was charged with aggravated blackmail. He is expected to appear at an extradition hearing in NSW tomorrow.

Police have also issued a warrant for the arrest of a Paralowie man, 41, who is wanted in connection with this investigation.


ONE of Australia’s most senior outlaw bikies has attended an Adelaide court to support an arrested colleague following raids that have left their gang in shreds.

Nomads national president Sleiman “Simon” Tajjour sat in the public gallery of the Adelaide Magistrates Court today, while one of his crew sat in the dock in custody.

The Advertiser understands that man, 31, whose identity has been suppressed, is a senior national office-bearer for the club.

Mr Tajjour outside the Adelaide Magistrates Court, where he was supporting a colleague.

Mr Tajjour outside the Adelaide Magistrates Court, where he was supporting a colleague.

Nomads national president Sleiman “Simon” Tajjour flashes a smile for waiting media.

Nomads national president Sleiman “Simon” Tajjour flashes a smile for waiting media.

He has yet to plead to two counts of aggravated blackmail, making threats to kill and cause harm and aggravated assault causing harm.

The man is further charged with blackmail and participating in a criminal organisation.

He was one of 12 gang members arrested yesterday in a two-state operation that involved more than 170 officers from SA and NSW.

Mr Tajjour, who has not been charged with any offence, listened from the public gallery as prosecutor Sandi McDonald, SC, asked the charged man’s case be adjourned.

A member of the Nomads gang being escorted out of the City watch house.

A member of the Nomads gang being escorted out of the City watch house.

“This is his first appearance, and this matter will eventually join up with the 12 other accused on a date that has been set in August,” she said.

Ms McDonald said three of those accused had already faced court, while the others would be flown into Adelaide this afternoon to face court on Monday.

She asked the man’s name and image be suppressed until police completed identification procedures.

One of the Nomad gang members being escorted out of Adelaide Airport.

One of the Nomad gang members being escorted out of Adelaide Airport.

Ms McDonald also asked the court suppress the names, images and anything that would tend to identify the two alleged victims in the matter.

“By the next court date we will have received statements from the two alleged victims, which I understand are quite voluminous,” she said.

“We will also be making an application to have this defendant declared a serious organised crime offender.”

Another member of the Nomad gang members being escorted out of Adelaide Airport.

Another member of the Nomad gang members being escorted out of Adelaide Airport.

A third extradited Nomad gang member being escorted out of Adelaide Airport.

A third extradited Nomad gang member being escorted out of Adelaide Airport.

The man’s Sydney-based lawyer, Omar Juweinat, said his client would be seeking release on bail and asked a hearing date be set.

“The officer in charge (of the operation) is most likely going to be required for a short cross-examination during that hearing,” he said.

Magistrate Jayne Basheer remanded the man in custody for a bail hearing next month, and to join up with his co-accused’s cases in August.

Mr Tajjour declined to comment outside court, telling reporters to “ask my lawyer”.

Mr Huweinat also declined to comment.


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