$500k claim: Falsely accused crime reporter’s new court battle

Veteran journo Steve Barrett is fighting to recoup almost half a million dollars in costs in the first case of its kind in Australia.

Steve Barrett is back in court. Picture: NCA NewsWire/Monique Harmer

Veteran crime reporter Steve Barrett is fighting to recoup almost half a million dollars in legal fees after a blackmail prosecution against him was abandoned.

In the first case of its kind in Australia, lawyers for Barrett will argue it is an unusual case with important considerations for the freedom of the press and public interest in investigative journalism exposing criminal wrongdoing.

. Veteran journalist Steve Barrett is fighting to get his legal costs back. Picture: Adam Yip

And it will be argued in the NSW Supreme Court that if Commonwealth prosecutors had all the facts about the case which turned on the evidence of a self-confessed compulsive liar, as well as Barrett’s extensive 40-year career working hand-in-hand with police solving crimes, it would have been unreasonable to have ever charged him.

Dr Greg Wood, KC, is the barrister for Steve Barrett. Picture: Natalie O’Brien

Barrett had been investigating what eventually turned out to be Australia’s biggest tax fraud case after a tip-off from Daniel Hausman, a developer he had met only once before.

Barrett maintained and Hausman ultimately conceded, Barrett had no knowledge of the blackmail plan Hausman had hatched, or of Hausman’s threat to use Barrett exposing the tax fraudsters in the media, as leverage.

Daniel Hausman admitted lying about Steve Barrett. Picture: NCA NewsWire/Joel Carrett

Barrett had been lured into the middle of a dramatic true crime story unaware he was being used as a pawn. But it wasn’t the first time Barrett had found himself unwittingly in the middle of an unfolding criminal case.

The print journalist turned TV reporter had investigated and reported on everyone from the late corrupt cop Roger Rogerson to Mr Big - Lennie McPherson - a violent crime boss who tried to bribe Barrett with $1000 in cash stuffed into his pocket. Barrett refused to accept the money and donated it to the Victor Chang heart foundation.

Crime boss Lenny McPherson. Picture: News Corp

Barrett was also renowned for work tracking down the fugitive pedophile Dolly Dunn and informed the Australian Federal Police of his whereabouts in Honduras so he could be arrested.

He worked with police on the John Wayne Glover granny killer case, the Ivan Milat murders, interviewing his only known survivor Paul Onions. Barrett also received a special commendation from NSW Police for his help in a murder inquiry.

So when Barrett was told of a potentially explosive story about a $105 million Plutus payroll taxation fraud involving Adam Cranston, the son of the then Deputy Taxation Commissioner Michael Cranston. He was excited and intrigued. Mr Cranston senior was found not guilty of misusing his position to help his son.

Adam Cranston was jailed for his part in the tax fraud. Picture John Grainger

Solicitor Andrew O’Brien with Steve Barrett speaking to media after the charge against Barrett was dropped. Picture: NCA NewsWire/Monique Harmer

While Barrett was pursuing leads for the story and asking for documents to prove the wild allegations, the AFP were also watching and swooped, arresting a string of people involved in the fraud as well as separately Hausman and his co-conspirator Daniel Rostankovski who had discovered the tax fraud hatched the blackmail plan. Hausman and Rostankovski pleaded guilty and were jailed for blackmail.

After being told by the AFP he was not considered a suspect or a co-conspirator the AFP did a backflip and charged him with one count of conspiracy to blackmail. Barrett’s trial in 2021 was aborted after a hung jury. The Commonwealth Director of Public Prosecutions ordered a retrial but Barrett had exhausted his financial means spending almost $500,000 to clear his name.

Then the case began to dramatically unravel after it came to light that evidence given in a string of other court proceedings showed Hausman had admitted persistently telling lies about Barrett and others. Hausman was a known liar before Barrett’s trial, but after that the breadth of is his fabrications was exposed.

Former District Court Judge and barrister for Barrett, Dr Greg Woods KC, made a blistering submission to the court arguing for a permanent stay of proceedings based on Hausman’s mendacity saying his evidence was so “clearly exposed as contradictory, evasive and unreliable” that Hausman was a possible rival for renowned tall tale teller Baron Munchausen.

He said the further pursuit of Barrett would bring the administration of the legal system into disrepute.

The Commonwealth Director of Public Prosecutions then dramatically dropped the charge against Barrett.

Barrett’s solicitor Andrew O’Brien said at the time that prosecuting authorities must be careful not to confuse mere contact by journalists with criminals as criminal conduct itself.

The case against Barrett had relied mostly on Hausman’s word and his interpretation of intercepted telephone calls and text messages between the two of them.

It’s argued that those interpretations were twisted to suit Hausman’s version of events.

None of the intercepted calls or texts ever discussed Barrett being paid, receiving any sort of monetary reward, or any knowledge of Hausman’s blackmail.

Hausman’s co-conspirator in the blackmail Rostankovski never gave evidence against Barrett.

Crown prosecutor Trish McDonald has conceded to the court that the case against Barrett would have been “weakened” without Hausman as a witness. But she said they still had enough independent evidence to prosecute.

Originally published as $500k claim: Falsely accused crime reporter’s new court battle