TV reporter ‘not told of $5m blackmail demand’

The architect of a plot to blackmail an alleged $105m tax fraud syndicate using a veteran TV reporter says he never revealed his extortion plans.

Veteran crime reporter Steve Barrett arrives at Downing Centre Court in Sydney. Picture: NCA NewsWire / Christian Gilles

The architect of a plan to blackmail an alleged $105m tax fraud syndicate using veteran television reporter Steve Barrett, has admitted he never revealed to Mr Barrett he was planning to make a $5 million extortion demand.

Daniel Hausman. Picture: NCA NewsWire/Joel Carrett

Daniel Hausman, a former property developer and a key witness in the trial of Mr Barrett, who has been charged with blackmail, said he told Mr Barrett about the alleged fraud syndicate and that one of them was the son of the then deputy tax commissioner Michael Cranston, but not that he planned to blackmail them.

Former ATO deputy commissioner Michael Cranston. Picture: AAP Image/Paul Miller

Hausman said at an initial meeting at a Paddington Pub he remembered Mr Barrett was astonished at the claims that Cranston’s son, Adam, was stealing from the ATO and kept saying what a great story it would be.

“He said he could make a lot of money from the story,” Hausman told the court, “and he was quite persistent” (about doing the story).

But Hausman said he told Mr Barrett he could not run with the story until he gave him the go ahead.

Mr Barrett, who has worked for Channel 7, Channel 9 and The Australian Newspaper, has pleaded not guilty to a charge that he was part of a conspiracy to blackmail the alleged Plutus payroll tax syndicate.

Adam Cranston the son of former ATO deputy commissioner Michael Cranston. Picture: AAP Image/Paul Miller.

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 money from the people 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 syndicate was siphoning off millions in PAYG tax and GST for themselves by contracting out the payroll tax responsibilities to second tier companies with straw directors, and that Hausman and Rostankovski had found out about it and demanded money to keep quiet.

The court has already been told the Defence case is that Hausman is a lair and a manipulator.

The court heard Hausman had already pleaded guilty to blackmail and been sentenced to jail.

Hausman told the court on Monday he had told Mr Barrett the directors were “investors” who were not being treated well by Plutus Payroll members, and his colleague Daniel Rostankovksi wanted them to come over to his company and “we were looking to get the investors better returns.”

Steve Barrett has worked for The Australian, Channel 7 and Channel 9. Pic. Bob Finlayson.

He told Mr Barrett his potential role would be to attend a meeting with alleged members of the syndicate, tell them he was ex 60 Minutes producer, a long time journalist and threaten to do a story and leave the meeting.

Hausman said he promised to pay Mr Barrett a $10,000 success fee if the investors switched to Mr Rostankovski and he had given Mr Barrett $2000 upfront at a subsequent meeting in Newtown, Sydney.

Hausman also claimed he had business dealings with Mr Barrett seven years previously when Mr Barrett was with 60 Minutes and had asked him to contact some business associates in Melbourne who had dudded him on a deal. He claimed to have paid Mr Barrett $1000 to approach one of the businessmen in Melbourne.

The trial is continuing.

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Originally published as TV reporter ‘not told of $5m blackmail demand’