[Australia] Guilty verdict and prison term for fifth Plutus payroll fraudster

Five people have now been found guilty of their respective roles in one of Australia's largest tax frauds, following a marathon trial in the NSW Supreme Court, ABC News reports.

On March 21, Patrick Willmott became the fifth defendant to receive a guilty verdict from the NSW Supreme Court jury on two charges, after the five were accused of causing a loss to the Commonwealth of more than $105 million.

Siblings Adam and Lauren Cranston, lawyer Dev Menon and ex-professional snowboarder Jason Onley were also reportedly found guilty of conspiring to cause a loss to the Commonwealth and conspiring to deal with the proceeds of crime valued at over $1 million.

The Cranstons are the children of former ATO deputy commissioner Michael Cranston. There is no suggestion that Mr Cranston was involved in any wrongdoing.

The final guilty verdict means all conspirators are now behind bars.

The trial began in April 2022 and jurors heard from more than 30 witnesses, saw dozens of exhibits and were played hours of secret recordings.

Jury deliberations reportedly began in mid-January. 

Justice Anthony Payne thanked the jurors — who were involved in the case for some 11 months — for their "incredible" public service.

"Your dedication to your task has been truly outstanding," he said.

The judge said, in light of the length of time they had performed their role, members of the panel would be excused from further jury duty for 20 years.

The trial heard that a company called Plutus Payroll had collected gross wages from employers before the money that should have gone to the ATO by way of GST and Pay As You Go (PAYG) tax was siphoned via "second tier" companies.

Dummy directors installed in those companies were reportedly random and unconnected individuals, including drug addicts who accepted money to open bank accounts in their names.

In appearance, Plutus was "squeaky clean" and tax compliant, jurors heard.

The conspiracy ran between 2014 and 2017 and was analogous to a train, according to the Crown, with people getting on and off at different points in time.

Plutus reportedly boasted a zero-fee service which was "too good to be true".

The Crown case contended that the group conspired to spend unpaid tax on "toys"; extravagant purchases including houses, cars, boats and planes.

The scam was exposed after an investigation by the Australian Federal Police with assistance from the ATO as part of Operation Elbrus. A covert operation gathered evidence about the defendants' awareness and involvement.

The court heard that Mr Cranston controlled the second-tier companies through his childhood friend Mr Willmott, his sister, and Mr Menon.

By January 2017 the ATO was reportedly winding things up, having been "on the scent" since July of the previous year, the jury was told.

In a secret recording from January 2017, Mr Cranston told Mr Menon that if it was uncovered it would be "f****n' Ben Hur man".

Mr Menon replied, "It would be the biggest tax fraud in Australia's history, definitely."

The defendants were reportedly heard rehearsing possible defences in other recordings, including a suggestion that the blame should be laid at the feet of Peter Larcombe; a former business partner who had died.

By February 2017, it was time to get "stories straight" and secure "self-preservation" for all, Mr Menon said in the recordings.

At a meeting, Mr Willmott reportedly asked, "Will any of us go to jail?"

Mr Menon replied, "No". Not if they banded together, Mr Cranston added.

Mr Menon also discussed with his co-conspirators the impossibility of the ATO untangling the conspiracy's finances.

"There's no forensic accountant in the world … I can't even f***en' piece this together," he said.

The case will return to court in early May.

Source: ABC News

(Quotes via original reporting)

Five people have now been found guilty of their respective roles in one of Australia's largest tax frauds, following a marathon trial in the NSW Supreme Court, ABC News reports.

On March 21, Patrick Willmott became the fifth defendant to receive a guilty verdict from the NSW Supreme Court jury on two charges, after the five were accused of causing a loss to the Commonwealth of more than $105 million.

Siblings Adam and Lauren Cranston, lawyer Dev Menon and ex-professional snowboarder Jason Onley were also reportedly found guilty of conspiring to cause a loss to the Commonwealth and conspiring to deal with the proceeds of crime valued at over $1 million.

The Cranstons are the children of former ATO deputy commissioner Michael Cranston. There is no suggestion that Mr Cranston was involved in any wrongdoing.

The final guilty verdict means all conspirators are now behind bars.

The trial began in April 2022 and jurors heard from more than 30 witnesses, saw dozens of exhibits and were played hours of secret recordings.

Jury deliberations reportedly began in mid-January. 

Justice Anthony Payne thanked the jurors — who were involved in the case for some 11 months — for their "incredible" public service.

"Your dedication to your task has been truly outstanding," he said.

The judge said, in light of the length of time they had performed their role, members of the panel would be excused from further jury duty for 20 years.

The trial heard that a company called Plutus Payroll had collected gross wages from employers before the money that should have gone to the ATO by way of GST and Pay As You Go (PAYG) tax was siphoned via "second tier" companies.

Dummy directors installed in those companies were reportedly random and unconnected individuals, including drug addicts who accepted money to open bank accounts in their names.

In appearance, Plutus was "squeaky clean" and tax compliant, jurors heard.

The conspiracy ran between 2014 and 2017 and was analogous to a train, according to the Crown, with people getting on and off at different points in time.

Plutus reportedly boasted a zero-fee service which was "too good to be true".

The Crown case contended that the group conspired to spend unpaid tax on "toys"; extravagant purchases including houses, cars, boats and planes.

The scam was exposed after an investigation by the Australian Federal Police with assistance from the ATO as part of Operation Elbrus. A covert operation gathered evidence about the defendants' awareness and involvement.

The court heard that Mr Cranston controlled the second-tier companies through his childhood friend Mr Willmott, his sister, and Mr Menon.

By January 2017 the ATO was reportedly winding things up, having been "on the scent" since July of the previous year, the jury was told.

In a secret recording from January 2017, Mr Cranston told Mr Menon that if it was uncovered it would be "f****n' Ben Hur man".

Mr Menon replied, "It would be the biggest tax fraud in Australia's history, definitely."

The defendants were reportedly heard rehearsing possible defences in other recordings, including a suggestion that the blame should be laid at the feet of Peter Larcombe; a former business partner who had died.

By February 2017, it was time to get "stories straight" and secure "self-preservation" for all, Mr Menon said in the recordings.

At a meeting, Mr Willmott reportedly asked, "Will any of us go to jail?"

Mr Menon replied, "No". Not if they banded together, Mr Cranston added.

Mr Menon also discussed with his co-conspirators the impossibility of the ATO untangling the conspiracy's finances.

"There's no forensic accountant in the world … I can't even f***en' piece this together," he said.

The case will return to court in early May.

Source: ABC News

(Quotes via original reporting)