Damien Luscombe stole millions from star clients including Gotye, Angus and Julia Stone

A music industry accountant embezzled millions from his high-profile clients including Gotye and Peking Duck during a decade-long scam to fund his online gambling habit.

Senior music industry business executive Damien Luscombe embezzled millions of dollars from his high-profile clients.

A music industry accountant embezzled millions of dollars from his high-profile clients for more than a decade to fund his online gambling addiction.

Damien Luscombe, 38, a former partner at Collingwood-based music business and accounting firm White Sky, stole more than $2.1m from clients including Grammy recipient Gotye, folk duo Angus and Julia Stone, electronic group Peking Duk and several hospitality and entertainment businesses.

The County Court on Friday heard Luscombe’s offending began in 2011 and spanned 11 years from when he was junior accountant to a senior manager representing several clients and with several employees working for him.

He doctored legitimate client invoices by amending bank details to include his own but became more brazen as his gambling addiction grew, eventually creating fake client emails requesting loans, bonuses and royalty payments.

Gram Wouter “Wally” De Backer, known by his stage name Gotye, said the theft had caused him stress but he forgave Luscombe and “hoped he could find more interesting and productive things to do in the future”.

Luscombe stole $18,000 in 2011 but that increased to more than $500,000 in 2022 with a total $2,166,036 embezzled from nine hospitality or entertainment businesses and five musicians.

The court heard he created at least 337 false documents and made 239 fraudulent transactions enabling him to steal $625,000 from Peking Duk, $495,000 from Gotye and $40,000 from Angus and Julia Stone.

Most of the money was gambled online through companies like Sportsbet.

Luscombe’s offending was uncovered in 2022 after a colleague noticed a large payment into an unknown bank account and raised it with him.

“I’ve sorted mate, I can fill you in later,” Luscombe told his colleague.

But the worker later reported it to White Sky’s manager after noticing another suspicious transaction.

The firm, which manages the finances of hundreds of musicians and businesses, called Luscombe into a meeting in October 2022 where he admitted he stole the money to pay for his gambling.

Australian chart topping duo Peking Duk said they felt “utterly betrayed and insulted” after they were “robbed blind” by Damien Luscombe.

Luscombe, who pleaded guilty to 12 charges including obtaining financial advantage by deception, stole from hospitality and entertainment businesses including Mr. Miyagi, Sister Bella and Ponyfish Island bar, with the court told some restaurateurs were forced to sell.

In deposition statements Adam Hyde and Ruben Styles from Peking Duk described feeling “utterly betrayed and insulted” after they were “robbed blind”.

“I am admittedly impressed with the sheer volume of it,” Mr Styles said.

“It’s quite a ballsy move, like one that you might see in a movie.”

Wouter “Wally” De Backer, known by his stage name Gotye, said the theft had caused him stress but he forgave Luscombe and hoped he could “find more interesting and productive things to do in the future”.

Seated in the dock, Luscombe shut his eyes as some of the statements were read out.

Luscombe stole more than $2.1m from clients including folk duo Angus and Julia Stone.

His lawyer Christopher Carr SC told the court his client was working in a warehouse and had repaid about $44,000 in restitution and was willing to abide by any compensation orders.

“He has maintained since the very first moment a stance that is accepting of the punishment he recognises is deserving and regret for the harm he has caused to others,” he said, adding his client was receiving treatment for his gambling addiction.

Prosecutor Edwina Dane noted Luscombe had a prior conviction for similar offending in 2010 which had prompted him to seek gambling treatment.

The court heard a psychologist found Luscombe’s addiction was driven by low self-esteem and feelings of inferiority to those with money.

“If I had the means I would repay every cent immediately to try reverse some of the damage I have caused,” he said in a letter read to the court.

Ironically, Luscombe gave crucial evidence in the high profile trial of Guy Sebastian’s former manager Titus Day who was jailed in 2022 after he was found guilty of ripping off $620,000 from the Australian Idol winner.

Luscombe, who was supported in court by family and friends, was remanded into custody after the pre-sentence hearing with judge George Georgiou noting he would be sentenced to prison.

He will return to court on March 27 for sentencing.