Fraud accountant David Jacobs fleeced junior tennis coach, business owner via tax rort
A former big shot city accountant fleeced $222,000 from two clients – including a popular Bulleen junior tennis coach – because he and his wife were “up to their neck” in debt and “living beyond their means”.
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A former big shot city accountant ripped off two clients via a dodgy tax racket to prop up his failing business, a court has heard.
David Jacobs, 71, pleaded guilty in the County Court on Monday to theft and obtaining a financial advantage by deception.
Jacobs fleeced $222,000 from his two victims between 2013 and 2016.
The shonky Collins St accountant pocketed his victims’ tax debt payments instead of transferring the cash to the tax office.
Jacobs stole $165,630 from tennis coach Russell Cornehls, a former professional tennis player who operates coaching business Tennis in Stages at the Bulleen Tennis Club.
Mr Cornehls, who first engaged Jacobs in 1997, has competed against several top 150 players and international Davis Cup players.
Mr Cornehls has also coached a slew of junior tennis stars including state and national champions.
The court heard Mr Cornehls first learned of the scam in 2014 after receiving a letter from the tax office telling him he owed years of payments.
Mr Cornehls dismissed the letter as a “hoax” but immediately contacted Jacobs after receiving a second letter a year later.
He also said the tax office “garnished” his account.
Jacobs, whose tax agent registration was cancelled in 2014, stonewalled Mr Cornehls by claiming he didn’t know why the tax office sent the letters.
Mr Cornehls, via his next accountant, learned Jacobs hadn’t sent a single check to the tax office in the past seven years.
Mr Cornehls later said he smelled a rat when his meetings with Jacobs became less frequent and the shonky money man “no longer had staff at meetings”.
Mr Cornehls figured Jacobs’ failure to respond to requests for tax records was because “he couldn’t keep up with his paperwork”.
In his victim impact statement read to the court, Mr Cornehls said he felt “uneasy” and “shamed” and his health suffered.
“How can the legal system protect victims like myself,” Mr Cornehls said.
Mr Cornehls told the Herald Sun Jacobs had a “good time” with the stolen money.
“You’re sitting down with the guy, buying him coffee, handing over cheques for $8000 and it was all lies,” Mr Cornehls said.
Mr Cornehls, whose father Vic at 95 is the state’s oldest coronavirus survivor, said Jacobs mentioned owning a house in Brighton on many occasions.
“But he doesn’t have this house now, where is it, did he put it in his wife’s name, he has nothing now,” Mr Cornehls said.
“This was a planned thing, he knew what he was doing … I was told he used the money to keep up the lifestyle he was use to having.”
Jacobs also siphoned $56,903 from Daidal Systems Software owner Alexis Alexander — a client since 1984.
Mr Alexander was also unaware any theft had occurred until he was contacted by the tax office in October 2016.
Jacobs, who was interviewed by police twice in 2018 before he was charged, told investigators he splashed the cash on rent, bills and “other expenses”.
Jacobs also claimed his business “kept going downhill” and his thievery became a “vicious cycle”
“Basically (the cash) went on paying my office and to some extent, personal bills,” Jacobs said.
“I was up to my neck in credit card debt … (my wife and I) were living beyond our means, not absolutely extravagantly but clearly living beyond our means.”
Jacobs also claimed he didn’t pass on tax office demands to his victims because he didn’t want the situation to “blow up” before he could “fix it”.
“I’m obviously sorry (about) what I’ve done and know it was wrong,” Jacobs said.
“I intend to fully repay Russell but at the moment I have no assets and am being chased left, right and centre.”
Judge Anne Hassan questioned why Jacobs had “made no attempt to repay the money”.
“At one stage he must’ve owned his own house,” she said.
Jacobs’ bail was extended for sentencing on October 23.
Judge Hassan ordered Jacobs be assessed for a community correction order.
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