Penrith: Accountant charged after investigation into $26m tax-related fraud
The accountant charged with fleecing $26m from clients, including a company owned by NRL star Nathan Cleary, has been refused bail. The court heard the “pathological” gambler was “incentivised” by Sportsbet as one of their top punters.
Police & Courts
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A high-flying accountant and former chief financial officer of a celebrity beer brand charged with defrauding $26m from clients has been refused bail, with the court hearing he was among Sportsbet’s biggest clients, who paid him hefty incentives to keep gambling.
An unshaven Benjamin Carter appeared to Penrith Local Court via video link after being transferred into custody at Amber Laurel Correctional Centre.
His pregnant de facto partner and mother were also present.
Carter is charged with 16 offences, including 14 counts of dishonestly obtain financial advantage by deception and knowingly deal with proceeds of crime.
It is also alleged, using his capacity as chief financial officer of Drink West Pty Ltd — the beer company part-owned by NRL heavyweight Nathan Cleary — Carter falsely purported to facilitate the purchase of $440,000 in the company’s shares.
During a lengthy set of submissions, the court heard an argument of unacceptable risk of further offending if he was granted bail, due to his “pathological gambling addiction” and a risk of failure to appear.
The police prosecutor said the prosecution case was extremely strong with a 16,000-long page brief of evidence and signed witness statements.
“The accused is undoubtedly a gambling addict, the evidence shows show even after realising and acknowledging his actions were criminal he continues to gamble large amounts of money,” he said.
The prosecutor also raised the serious risk of Carter failing to appear as he had the networks to “leave the country unlawfully” due to his “regular contact with high-ranking criminal contacts both onshore and offshore”.
The prosecutor also drew on Carter’s previous criminal history, when he was found guilty of defrauding $137,000 from a disabled customer at Commonwealth Bank in 2008, where he worked as a teller.
The lawyer appearing for Carter, Nick Hanna, outlined the “unusual features” of the case as to why he should be bailed, including the amount alleged by police to have been defrauded was significantly higher than the actual figure.
“The quantum amount that is specified is $26m, including $20m from gambling institutions, the actual amount gone is $6m, there has been double, triple, quadruple counting of the money to get to this figure of $26m.” Mr Hanna said.
“There’s a possibility it won’t ever get close to $6m let alone $26m dollars,”
Mr Hanna also made the stunning submission his client’s severe gambling addiction was being facilitated by wagering giant Sportsbet, claiming they “were not a passive recipient” of his gambling behaviours and failed to intervene.
According to Mr Hanna, Carter had commenced civil proceedings against Sportsbet in the federal court alleging they “induced and incentivised” his behaviour, despite him being “identified as engaging in red flag behaviour.”
“I understand it will be alleged Sportsbet offered corporate boxes, free flights and tickets to various events to gambling events,”
“The lavish lifestyle was, as I understand, the result of free flights and accommodation in order to induce him to continue to gamble misleading.
The court also heard Sportsbet would supply Carter with bonus bets and match every dollar he gambled and provided misleading monthly statements saying he won certain amounts when actually he made a net loss.
Following a lengthy set of submissions from both ends Magistrate Steven Corry denied Carter bail, citing an unacceptable risk to the community.
“Given the ongoing nature of the fraud, the strong prosecution case there’s a possibility of further fraud being committed to the community.”
EARLIER
The charges were sparked by an investigation by NSW Police State Crime Command’s Raptor Squad, which after uncovering the alleged $26 million fraud arrested the 36-year-old at his home in Silverdale about 9.20am on Tuesday.
Carter’s accounting firm, Carter’s Tax Advisory based in Penrith, has previously worked for Drink West — a beer company started by NRL star Nathan Cleary and UFC champion Tai Tuivasa, alongside other investors.
In a statement, Drink West said Carter’s involvement with their brand ended in July 2022.
There is no suggestion of any wrongdoing or knowledge of the alleged fraud by Cleary or Tuivasa, or anyone involved with Drink West.
Carter’s Tax Advisory signed a partnership with the Penrith Panthers in 2019 and in a promotional video, the Panthers’ head of partnerships and media Jeremy Tuite said Carter’s company would help “educate” the club’s star players.
“Carter’s Tax Advisory is a local accounting firm based here in Penrith who will be providing educational advice to Panthers players, staff, members and fans,” Mr Tuite said.
In a statement, police said they will allege in court that Carter defrauded at least eight of his accounting clients.
At the same time he was being taken to St Mary’s Police Station for questioning on Tuesday, detectives raided his Carter’s Tax Advisory office.
There they arrested Amy Steele, 25, who is both his personal assistant and partner, and who police allege tried to conceal his misconduct.
Carter, who police allege has links to the Alameddine organised crime network, was charged with 16 offences including 14 counts of dishonestly obtain financial advantage by deception and knowingly deal with proceeds of crime.
During search warrants at Carter’s home in Silverdale and his offices in Penrith, police located and seized electronic devices, hard drives, and documentation relevant to their investigation.
The items seized will undergo further forensic examination.
At one of the two locations they also allegedly found a white substance, believed to be cocaine, and charged Carter with possessing a prohibited drug.
Carter was refused bail and is due to face Penrith Local Court today.
Ms Steele, who is understood to be pregnant, was charged with recklessly dealing with more than $5000 in alleged proceeds of crime and was granted conditional bail, to face the same court on July 27.
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