Adam Cranston seeks investigation of juror misconduct claims

The mastermind of the biggest tax fraud scandal in Australian history is seeking an investigation into possible improper conduct by jurors during his nine-month trial over a $105m rort.

The architect of the biggest tax fraud scandal in Australian history has asked a court to order an investigation into possible improper conduct by the jurors that convicted him.

Adam Cranston was jailed for a minimum of 10 years after a gruelling months-long Supreme Court trial where a jury convicted him of ripping the Commonwealth off to the tune of $105m in a major tax rort.

The son of then-deputy tax commissioner Michael Cranston is now seeking an order of the court under the Jury Act requesting the sheriff to investigate possible improper conduct by the jury that convicted him in March 2023.

Repeated efforts to contact Cranston’s solicitor and the office of the Commonwealth Director of Public Prosecutions regarding the order sought and the substance of the allegations did not elicit any responses.

Adam, his sister Lauren Cranston, former lawyer Dev Menon, former pro-snowboarder Jason Onley and Patrick Willmot were among a raft of players jailed over their roles in the extraordinary scam.

In an earlier separate trial, Michael Cranston was found not guilty by a jury of misusing his position as a senior public official – the deputy tax commissioner – to help his son.

At the time of Adam’s crime, his father was in charge of the ATO’s investigations into exactly the type of large-scale tax fraud that his son had been committing.

Adam Cranston owned and controlled Plutus Payroll — a legitimate payroll company which managed tax obligations for a number of legitimate clients.

But he was ultimately found to have kept a significant percentage of those funds, by funnelling money to a complex web of second-tier companies.

The list of people chosen by the Plutus Payroll syndicate to act as the sham companies’ directors included reformed and current drug addicts, public housing residents, and disgraced former businessmen.

Cranston and Menon had once bragged in a phone call that the scam was so complex and impossible to untangle they would never face the consequences of their crimes.

They did not know then that police were listening in as they unfurled the inner workings of the Plutus Payroll fraud.

“If this was uncovered, Simon, if this was fully uncovered and they knew exactly what was going on, it would be f..king Ben Hur man. This is a big sized company,” Cranston said.

Menon had replied: “It would be the biggest tax fraud in Australia’s history, definitely, there is no question. It would be the biggest tax fraud.”

The Cranston siblings, Menon, Onley and Willmot each pleaded not guilty to conspiring to cause a loss to the Commonwealth and conspiring to deal with crime proceeds, before the jury, in a monster nine-month trial, convicted them after weeks of deliberations.

Throughout the trial, Adam – the alleged mastermind – denied knowing his company had withheld $105m in taxes over three years.

Instead, Adam blamed co-conspirator Peter Larcombe – who an American coroner ruled had died by suicide in 2016, weeks after raising his fears the scam was about to be uncovered – for the embezzlement.

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Esteemed accounting lecture hits 85 years

Business

The Annual Research Lecture facilitated by CPA Australia and the University of Melbourne marked 85 years last week.

By Imogen Wilson • 07 October 2024

Last week, CPA Australia and the University of Melbourne marked 85 years of the collaborated Annual Research Lecture.

This year the lecture focused on the role of accountants and reporting requirements in the not-for-profit sector.

To continue the long-standing tradition between CPA Australia and the University of Melbourne, the lecture was presented by federal government director and deputy president of CPA Australia’s Victorian Divisional Council, Mel Yates FCPA.

CPA Australia and the University of Melbourne said the lecture “has seen some of the greatest and most respected minds in accounting, business and finance” present to students and other attendees over the years.

The lecture discussed what has been achieved in over a decade since the Australian Charities and Not-for-profits Commission (ACNC) was established.

The lecture was titled ‘Charity reporting: Exploring the balance between trust and confidence and unnecessary burden’ and outlined the role accountants have played historically, as well as upcoming industry opportunities and challenges.

CPA Australia president Dale Pinto FCPA said the Annual Research Lecture boasts a rich history of tackling the significant issues and trends within the accounting profession.

“We take great pride in our partnership with the University of Melbourne,” Pinto said.

“Over the years, attendees have experienced countless memorable lectures that have informed and inspired their professional journeys and beyond.”

“This year’s lecture by Mel Yates, focusing on the charity sector and the critical role of accountants, continued this esteemed tradition and we thank Mel for such an engaging session, and all who attended.”

According to the joint bodies, the lecture featured reflections on the ACNC Charity Register containing “hundreds of thousands” of annual lodgements from registered charities.

In addition, there were reflections of “tens of thousands” of financial reports and the impact this had on trust and confidence in charities in the context of continuing regulatory reforms and societal expectations.

Pinto said attendees were given valuable insight into the charity sector, the benefits of charity reporting, the associated costs and the implications for accounting and governance research in practice.

Head of the department of accounting at the University of Melbourne, Brad Potter, said it was a “great address” on such a socially and economically important sector.

“Mel’s insights gave us many opportunities for future research on financial sustainability and what good governance looks like in the charity sector,” Potter said.

“As the longest running lecture series at the University and one of the longest in the world, this lecture is an important part of the landscape in accounting in Australia.”