Malcolm Simpson, owner of Champion Travel defrauded Drakes Supermarket of $184,559

A travel business run by a prominent Adelaide sporting figure defrauded a popular supermarket chain of $184,000 in an effort to save his rapidly sinking company from debt.

Adelaide 36ers ex-chairman Malcom Simpson betrayed his business relationship with Drakes Supermarket in a desperate attempt to save his travel business from mounting debts.

Simpson, 72, will be sentenced in the Adelaide District Court later this month after he defrauded $184,559 from the supermarket chain to try to keep his own business afloat.

Malcolm Simpson will be sentenced later this month for five counts of deception. Photo: Facebook

Simpson’s initially successful company Champion Travel collapsed with debts of almost $1.6m in 2018.

Champion Travel was incorporated in 1994, which turned to focusing on sports-based trips helped by Simpson’s contacts and reputation in basketball.

Simpson spent 15 years as the 36ers chairman and helped secure their home stadium at Findon.

Peter Longson, prosecuting, told the district court on Friday that Drakes paid Simpson money for services he couldn’t provide.

“At the time the request for the money was made, there were three business accounts – the overdraft (account) was maxed out, at the limit $180,000, the other two accounts had no money,” Mr Longson said.

“He should be grateful that Drakes realised something was up and pulled the pin because it’s almost certain that the offending would have continued.

“He had no money, he had no financial resources and he was never going to be able to find a quick $200,000 to put back in without taking the money from another third party.”

Mr Longson read out a victim statement from Drakes, saying the $184,559 financial loss had impacted its reputation and business relationships and it felt betrayed by Simpson.

“After a 12 year working relationship that we thought was based on trust, we have been profusely let down and disappointed by the dishonesty and deception shown by Mr Simpson,” its statement read.

According to its website, Champion Travel organised “comprehensive travel arrangements for major corporate clients and individuals, stages conferences, exhibitions and corporate events plus offer [sic] golfing holidays and incentives within Australia and around the world”.

Drake Supermarkets, the company’s main client, chose not to renew its contract with the company at the end of October 2017

Simpson, of Hindmarsh Island, had previously pleaded guilty to five counts of deception.

Stephen Law, for Simpson, told the court that the money Simpson defrauded was not for personal gain but to save his business.

“When Drakes pulled out of their contract, many other of the contracts with Mr Simpson were also terminated,” he said.

“Very quickly the business went into liquidation.”

The court heard Simpson filed for bankruptcy in August, 2018.

Mr Law pushed for a suspended sentence, saying the father-of-three had already suffered substantially.

“Mr Simpson is a proud businessman and this is a very embarrassing matter for him,” he said.

“He feels as though he’s lost everything that's important to him, including his marriage and his relationship with his family.

“He lost his business that he worked so hard and for so many years to try and maintain.”

Judge Joanne Tracey will sentence Simpson later this month.