$165m siphoned from the ATO into the pockets of Adam Cranston and his alleged co-conspirators’

POLICE say a series of company structures was used to siphon $165 million away from the ATO into the pockets of Adam Cranston and his alleged co-conspirators’ — all under the nose of his dad.

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MICHAEL Cranston poked his head through the gate at a Sydney courthouse on Thursday, saw a photographer and turned on his heels.

The fact the ATO Deputy Commissioner turned up at all was astounding, given what unfolded in the past few days.

Adam Cranston leaves Sydney Police Centre in Surry Hills after being released on bail related to an investigation into ATO fraud. Picture: Dylan Robinson

Later that day Cranston’s son Adam, whose middle name honours his father’s first name, would appear via video link from Surry Hills police station, grim-faced after the previous 24 hours.

Adam was charged with concocting one of the greatest Australian Taxation Office rip-offs in Australian history.

Police claim a complex series of company structures was used to siphon $165 million away from the ATO into Cranston and his alleged co-conspirators’ coffers — and all under the nose of his dad, a man who made his reputation over a long career fighting high-profile tax dodgers.

It was alleged that Adam Cranston had conspired at various times with six other people — Devyn Hammond, Jason Onley, Dev Menon, Daniel Rostankovski and his sister Lauren Cranston — to defraud the ATO.

Ten people have been arrested over a $165 million tax fraud investigation, including Adam Cranston, the son of ATO deputy commissioner Michael Cranston. Picture: Paul Miller

Rostankovski and another man, Daniel Hausman, also faced extortion charges relating to the alleged scam.

Worse yet for Michael Cranston, apart from the terrible anticipation of seeing his son face court and knowing that his daughter had also been charged, was the prospect of joining them.

Australian Federal Police had just told a packed press conference, not even an hour before Cranston Sr walked up to Sydney Central Local Court, that he was being issued with a court attendance notice, to be charged with “abusing public office to gain advantage” with the “intention being of dishonestly obtaining a benefit for another person Adam Michael Cranston”.

Just what that benefit was finally started to become clear when AFP investigators claimed he tried to access confidential documents at the request of Adam, who had reached out in panic at the news he was under audit.

Seized assets included residential houses, funds in bank accounts, luxury cars, boats, motorbikes and an aircraft. Picture: Australian Federal Police

“It appears that his son has asked him to access some information potentially, we don’t believe at this point that he had any knowledge of the actual conspiracy,” Australian Federal Police Deputy Commissioner Leanne Close said.

It’s alleged Mr Cranston tried to access documents at the request of his son.

And two officials who Mr Cranston allegedly asked to do the same — Australian Taxation Office Assistant Commissioners Tony Poulakis and Scott Burrows — have been stood down without pay.

But even when The Daily Telegraph first learnt of the alleged scam in March, and that senior taxation staff may have been connected somehow, the idea that Michael Cranston — a darling of the ATO’s public relations department for years and a confident media performer who had appeared alongside the likes of David “Kochie” Koch on air, could be charged with any offence seemed too far-fetched to even enter the realm of possibility.

But that possibility has become the crushing reality of allegations that will soon become charges.

Some of the assets of various alleged syndicate members seized included aircraft, massive amounts of cash, jewellery, artworks, Grange wines, luxury cars, motorbikes and even racing cars.

Adam Cranston created the Synep Race Team last year Picture: Australian Federal Police

When Adam created the Synep Race Team last year he indulged his love of fast cars for all to see — his social media accounts at the ready, for all, including family, to follow. His brother Joshua raced with him, although he screamed at reporters outside court on Thursday, asserting strongly that he was not involved in the alleged fraud syndicate. And there is no suggestion he was.

The brothers celebrated side-by-side on the podium of the Bathurst 12-hour event, where they raced an imported Porsche up and down Mount Panorama.

It is not known how much Adam splashed the cash outside the pit lane — he was, after all, content with Bonds undies on the day of his capture outside his Bondi flat — or whether their dad watched the boys strut their stuff on the track.

But at least some folk at the AFP suspect Adam has the kind of relationship where he would reach out for help.

“He (Michael Cranston) is looking into it but considering he doesn’t know about it, it can’t be like the biggest thing since Ben-Hur,” Adam reportedly told co-accused syndicate heavyweight Menon.

ATO deputy commissioner Michael Cranston. Picture: Paul Miller

Police allege it was a complex web. The conspiracy investigated by the AFP and named in court documents allegedly ran from June 2016 to May 2017 and worked by diverting pay-as-you-go income tax payments from the ATO.

It involved the alleged conspirators establishing a business called Plutus, which provided payroll services to third-party companies.

The client companies (doing nothing wrong) would transfer funds to Plutus, which would then pay their employees and other obligations, such as the PAYG contributions to the tax office.

But the alleged conspirators then established several second-tier companies with a long list of unrelated directors.

Wages to Plutus clients would be paid from these companies, but only a fraction of the PAYG contributions would be sent to the tax office.

The retained funds were then allegedly paid to the alleged scammers via false paper trails and a series of bank accounts belonging to other companies.

Any shortfalls noted by the ATO would be owed by the second-tier companies and so, when the tax office came knocking, it would hit a wall, forced to simply wind up the companies. And so the alleged cycle continued.

There are many more threads to this complex tapestry, more tales to be told.

But, if proven, it will be one of the most brazen rip-offs ever to be uncovered in Australian corporate history.