Gambling addicted building director defrauds company of $3.3m

A building director with ties to some of Queensland’s construction giants has been sentenced to jail after gambling away more than $3.3 million of his own company’s money.

A company director of three prominent building companies has been sentenced to jail after he swindled $3.3 million from company accounts to feed his online gambling addiction.

Declan James Murphy on Wednesday faced the Brisbane District Court, charged with fraud in excess of $100,000.

Mr Murphy lived in Palm Cove, Cairns, and was the director of construction companies Mayford Contracting Pty Ltd, Mayford Carpentry Pty Ltd and HSEA Pty Ltd, between November 2011 and March 2019, the court heard.

He was in charge of payroll, bookkeeping and accounts, while his business partner managed staff, clients and materials.

According to the Mayford Contracting LinkedIn profile, the companies had ties with construction giants Laing O`Rourke, Lend Lease, Grocon Group, Sunland Group, Mainland, Brookfield Multiplex, Fleetwood, Hutchinson’s Builders, Condev, Cockram Constructions and Kane Constructions.

But after a falling out with a former accountant in 2014 following a $500,000 payroll audit, company finances took a dip, triggering Mr Murphy’s chronic online gambling addiction, which eventually sent all three of his companies into liquidation.

He was found out by his business partner, who in May 2019, discovered 853 company transactions had been made to seven different online gambling accounts under Mr Murphy’s name including TAB, UBET, LuxBet and Sportsbet.

The court heard Mr Murphy placed bets of up to $200,000 on races.

The gambling theft totalled more than $3.3 million over a three-year period and sent Mr Murphy bankrupt and ended his marriage.

His business partner, who was also his close friend and godfather to his daughter, was left $1.2 million in debt and had his building licence cancelled for life, the court heard.

The Australian Securities and Investments Commission (ASIC) released a statement last year revealing the three companies owed a combined total of $10,739,423 to unsecured creditors, including $562,000 in employee entitlements and $5,216,904 to the Australian Taxation Office.

The court heard Mr Murphy pleaded guilty to the fraud following negotiations with police.

Defence lawyer Sharon Loder told the court on Wednesday that Mr Murphy had committed “unsophisticated fraud,” as he had not tried to conceal the fraud with altered invoices or forged documents.

“He was commercially motivated, really he was attempting to rescue that company,” she said.

The court heard that between September 2016 and February 2019 Mr Murphy made 15 deposits back into the company accounts totalling $83,743.16.

Ms Loder said the deposits showed Mr Murphy had intended to payback the money with his winnings.

However, Judge Ian Dearden said the sum was, “a drop in the ocean” compared to the millions he had defrauded.

He described gambling addiction as a “black hole” and said Mr Murphy’s large transaction sums were “breathtaking.”

“Once you start, your on a slippery slope and it keeps going down,” Judge Dearden said.

“You effectively blew up your own shop.”

Mr Murphy was sentenced to 10 years imprisonment with a parole eligibility in two years and nine months.

Judge Dearden said his sentence was a “modest reduction” of the maximum penalty of 12-20 years.

“That reflects in part, the mental health explanation, even thought it doesn’t provide a defence,” he said.

Mr Murphy’s 124 days spent in pre-sentence custody was counted as time served.

He will be eligible for parole on July 27, 2025.

ASIC has banned Mr Murphy from managing any corporation for five years.