The Block buyer David Brandi in $135k GST fraud

A Melbourne high-flyer turned millionaire tax fraudster has been revealed as the buyer who snapped up four of The Block’s best-known homes.

A millionaire accountant who bought multiple properties from renovation reality TV show The Block has duped the Australian Taxation Office in an $135,000 GST fraud.

David Brandi, 48, pleaded guilty to two counts of dishonestly obtaining a gain from the Commonwealth after he claimed GST refunds he wasn’t entitled to relating to two Melbourne developments from January to March 2010.

David Brandi pleaded guilty to a $135,000 GST fraud.

Mr Brandi’s property loot included a $922,000 Richmond house in 2011 and $1.725 million for a Prahran apartment renovated by blockheads in a group challenge.

He also snapped up Dean and Shay Paine’s 2015 season-winning South Yarra apartment for $2.3 million and Chris and Kim Elliott’s Port Melbourne creation for $2.305 million.

More than a decade after his crimes and on the eve of his sentencing in the County Court on Friday, the Toorak father of three this week coughed up a bank cheque for the six-figure sum to pay back the tax office.

Brandi — who is on the board of the Melbourne United basketball team — has also pleaded with Judge Trevor Wraight not to send him to jail.

Barrister Ian Hill QC, for Brandi, on Monday told the court his client did not profit from his investment in the developments, with the companies involved going bust.

“He had invested substantially,” Mr Hill said.

The fraudster snapped up a property in Richmond from Tania and Rod Walsh in 2011.

“It’s like a house of cards. It all fell over.”

Mr Hill asked Judge Wraight to impose a jail term of under three years and free Brandi on a recognisance release order, where he will promise to be of good behaviour.

He said his client was a devoted family man and businessman, who had good community ties, particularly in sport.

“He is deeply remorseful,” Mr Hill said, adding that Brandi had brought “deep shame and embarrassment” on himself and his family.

“He acted in a dishonest way that really was foreign to his true nature.

“If we look at the 11 years since, your honour will see that he’s endeavoured to lead a useful, productive life.”

The Block Glasshouse apartment in Prahran was worked on by multiple contestants of the show in 2014.

The High Street property was sold for $1.725 million.

The court heard Brandi was an accountant and principal of chartered accounting practice Baitana Peak, which was trading as Brandi & Co at the time of the offending.

Not only had he substantially invested in Quantum 8 Group’s developments at 16 Bradley St, Newport, and 19 Faulkiner St, Clayton, but he was also hired to do the property development company’s business activity statements (BAS).

When doing the BAS, he falsely added invoice amounts from his company, Brandi Homes, to the construction costs, when it had not done any work on the projects and was in fact deregistered in 2008.

Brandi claimed GST refunds of $167,589 but the ATO found he was entitled to some, with $135,248.67 being rorted.

Dean and Shay Paine’s Blocktagon season winning apartment in South Yarra.

The home was snapped up by Mr Brandi for $2.3m.

In emails between Brandi and his staff in January 2010, he directs them how to do the GST refunds, before ordering them not to tell Quantum Group 8 owner, Socrates Michanicos.

“Soc is not to know about any of this yet, or at all,” Brandi wrote.

“He will want all of this back immediately and shit will hit the fan if he finds out — so everyone keeps their traps and emails shut.”

Brandi — who has purchased at least four The Block properties since 2011, and owns high-profile properties in Queensland, including the Gold Coast’s Sin City nightclub — was charged in March 2017.

The Port Melbourne pad was sold for $2.305 million.

Chris and Kim Elliott renovated the property on The Block.

The maximum penalty for each charge is five years jail.

The Tax Practitioners Board register states Brandi was disqualified from practice on September 30, 2020.

He is not eligible to re-register to practice until 2025.

The court heard he was now working in “business development”, giving advice to businesses he has a financial interest in.