Ex Channel 7 exec John FitzGerald reveals how network caught him paying his own companies $8m

This is the former corporate high-flyer who pilfered $8 million from Channel 7 and has now had to repay it all. Here, exclusively, he reveals why he did it and how he was caught.

EXCLUSIVE

This is the former corporate high-flyer who pilfered $8 million from Channel 7 and has now had to repay it all.

In his first interview about the decade-long duping — one of the largest corporate misappropriations in Australian history — the TV network’s former commercial manager has revealed why he did it and how he was caught.

John FitzGerald has been forced to pay back millions to Seven. Picture: Matrix for News Corp Australia

John FitzGerald was overseeing an annual budget of $400 million in 2005 when he began not only creating but approving invoices to two companies of which he was owner and sole director.

“When I started you knew you weren’t meant to do it but it wasn’t written anywhere,” Mr FitzGerald told News Corp Australia.

MORE: The other big internal drama at Seven

John FitzGerald has revealed how he was caught. Picture: Matrix Media for News Corp Australia

John FitzGerald pilfered $8 million from Channel 7 and has now had to repay it all. Picture: Matrix for News Corp Australia

“It later became written policy that you couldn’t make any deals you benefited from yourself. “I thought if it ever came out I would get a slap on the wrist. But when it did they got so nasty.”

Mr FitzGerald said he believed his actions were uncovered during a 2016 internal audit focused on a contractor who was a friend.

The contractor’s paperwork was sloppy, with invoices for new work submitted without fresh dates. Mr FitzGerald stood by his friend, which he suspects brought him under scrutiny.

“They stumbled on to the fact that these companies were owned by me and they assumed the worst and went to court,” he said. “I didn’t get a chance to explain what it was all about.”

In NSW Supreme Court action, Seven alleged the invoices were fake and no work had been done. But Mr FitzGerald told News Corp a bookkeeping service was in fact being provided. “I’m not claiming that I’m this innocent person,” Mr FitzGerald said.

“My argument was always it was a legitimate service and it didn’t really affect shareholders because the service had to be done.”

John FitzGerald changed strategies part-way through his battle with Seven. Picture: Matrix Media for News Corp Australia

Mr FitzGerald said in the months after Seven filed its action he kept negotiating with the network’s commercial director Bruce McWilliam: “We were sorting it out.”

Because the money was there to be repaid.

It hadn’t been frittered away on a lavish lifestyle. It was in assets such as multimillion-dollar properties and shares. The plan was to retire early.

Mr FitzGerald’s co-operation with Seven ended after he consulted a financial adviser who was also a solicitor.

“He said ‘hang on mate, why are you giving in?’,” Mr FitzGerald said.

So a defence was lodged.

“In hindsight that didn’t gain us anything,” he said. “Seven got their money and the lawyers got a bucket load.”

The court action was resolved by consent earlier this year.

A factor in him deciding to wave the white flag was the network’s fierce attack on Amber Harrison, the former executive assistant who went public over an affair with Channel 7 CEO Tim Worner.

Amber Harrison and Tim Worner. Pictures: Supplied

“Trying to defend yourself against Seven just wasn’t an option,” he said.

At 57, he has a 30-year mortgage on a townhouse and no option but to work for himself.

“You can’t rent a place. You can’t get another job. You just become a societal leper. It’s a fricking nightmare. Maybe I’ll write a book one day,” he said.

“All that money, it doesn’t mean shit. We are quite happy now.

“It was just a stupid, stupid thing to do.”

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