Justin Clive Fankenhauser pleads guilty to fraud and stealing

A Bundaberg dad used an elaborate system to rip off his boss, destroy the evidence and fund a $1600 a week cocaine habit. Now, a court has heard how he’s tried to make amends.

A Bundaberg man’s elaborate system of purchasing items for his own business on his employer’s account before falsifying records to cover his tracks came undone when a stock audit found an estimated $62,283.48 unaccounted for.

Justin Clive Fankenhauser pleaded guilty in Bundaberg Magistrates Court on Tuesday to one count of fraudulently falsifying or destroying records and one count of stealing by clerks or servants.

The court heard Fankenhauser had been employed as a sales, service and parts manager for Formatt Machinery when he used his position to purchase automotive parts for use in his own business.

To cover up his offending, which occurred between November 26, 2018 and June 1, 2022, Fankenhauser falsified inventory records and adjusted stock quantities.

“He used his position of trust to obtain these parts at a cost to the business,” Police Prosecutor Sergeant Grant Klaassen said.

When confronted by his employer, the dad of two broke down, confessing to having a cocaine habit which the court heard was costing around $1600 a week.

Justin Clive Fankenhauser used fraud to fund his cocaine habit.

Fankenhauser, who was remorseful for his actions, handed over a $25,000 trailer to his employer and pledged to pay another $25,000 cash.

With the amount of money stolen disputed between he and his former employer, a total of $50,000 compensation was agreed on.

His lawyer, Matt Maloy, told the court Fankenhauser had shown a “very significant indication of remorse” given he was willing to reimburse his former employer.

Mr Maloy said his client had gone “cold turkey” off drugs in May, a statement confirmed by a hair follicle test tendered to the court.

In sentencing, Magistrate Edwina Rowan noted Fankenhauser’s “very serious cocaine habit”.

She said openness, willingness to pay restitution and the steps he’d taken to give up drugs had saved him from spending actual time in prison.

Fankenhauser was sentenced to six months’ jail, suspended for 18 months and must pay $25,000 restitution to his former employer within seven days.

Convictions were recorded.