Adam Cranston: Tax fraud accused tries to delay trial over cash problems
Cops seized a bank account credited with more than $1m, vasts sums of money from the sales of luxury homes and even a private plane from a man accused of a $105m tax fraud, a court heard. It comes as he tried to have his trial delayed as he claims he can’t afford legal fees.
St George Shire Standard
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A former senior Australian Taxation Office official’s son charged over an alleged $100m tax evasion scam has failed in his attempt to delay his trial due to claims he cannot afford legal representation.
Adam Cranston, 33, owes his barrister $35,000 and thrice attempted to make the taxpayer pick up his legal bills ahead of his August 10 trial on charges of tax fraud and money laundering.
The Commonwealth alleges Cranston, his sister Lauren and six co-conspirators created Plutus Payroll, a payroll administration company for large corporate employers before fraudulently withholding Pay As You Go tax worth an estimated $105m.
Cranston allegedly received at least $7.5m of the ATO’s total shortfall but has since turned to his wife, his parents, his younger brother, a grandfather on a full pension, a grandmother in assisted living and a variety of employers to foot his legal bill after his Legal Aid bid failed.
On April 22 and 23 Cranston made an application in the Supreme Court to stay his trial indefinitely due to being unable to afford legal representation, which was resoundingly dismissed by Justice Robert Beech-Jones.
“He has failed to discharge the onus on him to demonstrate that he is ‘indigent’, that is, unable to afford appropriate legal representation,” Justice Beech-Jones said.
Over the two-day hearing the court heard the Australian Federal Police had seized several lucrative assets under the Proceeds of Crime Act shortly before Cranston’s arrest, including $1,010,143.34 in a Macquarie Bank account jointly owned by his wife Elizabeth.
Proceeds from the sale of his Bondi unit and a half-built mansion at a blue-ribbon waterfront Burraneer address which sold for $2.425m in April 2018 amounted to $926,986.
A plane bought for $960,000 in May 2016 was also sold under proceeds of crime orders.
Cranston cannot use any of the money seized to fund his ongoing legal defence and now owes his barrister Penny Musgrave $35,000, despite a $100,000 contribution from his wife and $128,000 from his current employer Permaform International.
He also has only $211 a week in disposable cash after he pays his living expenses, including $700 a week on a Menai rental where he resides with his wife and their young children aged two and 14 weeks.
The court also heard Cranston attempted to make the taxpayer pick up his legal bills three times with applications for Legal Aid.
“On October 23 last year, Mr Cranston submitted an application for legal aid, and on October 25 he was advised that his application for legal aid was unsuccessful,” Justice Beech-Jones stated.
“On October 30 Mr Cranston was advised that his appeal had been considered by the Legal Aid Review Committee and was unsuccessful (because) the income Mr Cranston had disclosed ‘in support of the appeal exceeds the limits of the Legal Aid NSW Means Test’.”
Ms Musgrave’s last-ditch attempt for a review of the situation in March confirmed the Legal Aid Review Committee’s determination not to grant Cranston legal aid.
“Mr Cranston’s trial will be complex and lengthy, and at the very minimum he will need to be represented by an experienced junior counsel and a reasonably experienced solicitor,” Justice Beech-Jones stated.
“Hence, at a minimum and allowing for some disbursements, I estimate that a privately funded defence of Mr Cranston would cost $800,000.”
Cranston’s father, former Australian Taxation Office deputy commissioner Michael Cranston, was found not guilty of misusing his position to assist his son over the allegations.
The court heard he had paid $450,000 in legal fees for himself and was unable to assist his son any further.
His mother and grandfather had previously contributed to his defence but were no longer able to, and nor is his grandmother who entered a $200,000 surety for Cranston’s bail.
“A significant portion of Mr Cranston’s legal fees have been paid for by gifts from his family and employer, but Mr Cranston claims that those funds have now been exhausted,” Justice Beech-Jones stated.
“Mr Cranston has stated that his younger brother had inquired about increasing his mortgage to assist Mr Cranston, however he was told he could not.”
Lauren Cranston has been granted legal aid and the taxpayer will now pick up the bill for her defence.
Justice Beech-Jones also rejected an application to suppress the entire matter on the grounds that public interest in open justice justified the judgment’s publication.
Cranston’s trial will proceed on August 10.