Star witness in blackmail trial of veteran reporter Steve Barrett admits using cocaine and lying

The key witness against veteran crime reporter Steve Barrett has made some shocking admissions about his own character.

Daniel Hausman arrives at the John Maddison court in Sydney. Picture: NCA NewsWire/Joel Carrett

The star witness in the blackmail trial of veteran TV journalist Steve Barrett was a self-confessed cocaine user with memory loss, who told lies and who pushed his own friend and lawyer under a bus to get a reduction in his own prison sentence, a court has been told.

Daniel Hausman, a former property developer, who has pleaded guilty and been jailed for engineering two blackmail demands totalling $25 million – admitted today he deceived his alleged co-conspirator, Mr Barrett, right from the start and told him a series of lies to get him onside.

Mr Barrett has pleaded not guilty to one charge of blackmail.

Veteran crime reporter Steve Barrett arrives at Kings Street Court in Sydney for his trial. Picture: NCA NewsWire / Jeremy Piper

It is alleged Mr Barrett, with two co-accused Hausman and Daniel Rostankovski, was part of a joint criminal enterprise hatched in February 2017, to demand $5 million from a group who were allegedly behind a large-scale tax fraud known as the Plutus Payroll fraud, or they would publicly expose them.

The crown case has alleged the group were allegedly siphoning off millions in PAYG tax and GST for themselves by contracting out the payroll tax responsibilities to second tier companies with straw directors.

Daniel Hausman has admitted using cocaine and lying. Picture: NCA NewsWire/Joel Carrett

The Defence case, which has been outlined to the jury, is that Hausman is a liar and a serial manipulator who had used Mr Barrett without his knowledge.

Hausman admitted under cross examination today from Mr Barrett’s barrister, Clive Steirn SC, that he had short term memory loss issues, took medication for pre-existing conditions, used cocaine twice a week and a drank a bottle of wine a night with his wife.

He agreed as he had been a recreational drug user he got confused about dates, times and events, but said he had a solid memory of events he was involved in.

Hausman also agreed he pushed his friend and solicitor, Sevag Chalabian, under a bus to save himself from a longer prison sentence for his blackmail crimes, and he agreed to give evidence if needed in the prosecution of two other people including Mr Barrett.

During his cross examination Hausman admitted to lying to Mr Barrett right from the start when he recruited Mr Barrett to suck him into his plan.

Hausman has admitted when he first spoke to Mr Barrett, he did not reveal anything about his blackmail plans instead said he had a potential story involving Adam Cranston, the son of the then deputy tax Michael Cranston, allegedly ripping off the ATO.

Michael Cranston, the father of Adam Cranston. Picture: AAP

He also told Mr Barrett he was disgusted about how Adam Cranston and the alleged Plutus Payroll fraud group had been treating a group of mum and dad investors in the second tier companies, and wanted to get them better returns on their money.

Hausman agreed Mr Barrett was “hot to trot” for the story and said it was “explosive” and asked what he could do to help.

He said Mr Barrett said he knew “ScoMo” who was treasurer at the time and could take the story straight to him.

Hausman said Mr Barrett also told him he would need proof and documents and that he would need to be very careful before running such an explosive story.

Hausman said Mr Barrett asked what he could do to help and Hausman told Mr Barrett he could attend a meeting with the Plutus payroll group and their lawyer – tell them he was ex 60 Minutes producer, throw down a business card, threaten to do a story and then leave the meeting and that would be the end of it.

The trial is continuing.

Originally published as Star witness in blackmail trial of veteran reporter Steve Barrett admits using cocaine and lying