Youth leader lost millions of taxpayer dollars at Crown Casino
A prominent African community leader won millions of dollars in government contacts to provide programs for youths involved in Victoria’s criminal justice system. But in damning new allegations, police say he gambled away most of it – including $2.4 million at Crown Casino.
Police & Courts
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An African youth justice leader allegedly blew millions of taxpayer dollars at Crown Casino in an elaborate decade-long scam involving secret hotel meetings and conspiracies of violence.
Damning new allegations have emerged in the investigation into Abeselom Nega, 54, who is accused of dishonestly obtaining $4.2 million while running state government funded programs for troubled youths and refugees.
Court transcripts obtained by the Herald Sun reveal at the height of his gambling addiction in 2012 Mr Nega spent 278 days at Crown Casino and lost $712, 000.
Investigators from Victoria Police’s Fraud and Extortion Squad allege he lost a total of $2.4 million at the casino between 2005 – 2016 while CEO of iEmpower and falsified financial records to conceal his habit.
Detective Senior Constable Sasha Jasic told the Melbourne Magistrates’ Court: “A large proportion of the funding amounts provided for the programs were used to fund gambling activities … virtually entire funding payments were spent on gambling within several days of receipt.”
Mr Nega had a “master” relationship over a young bookkeeper, Freya Wang, and would secretly meet her three times a week at the Radisson Hotel to “back capture and falsify” the company’s financial records, police alleged.
Senior Constable Jasic told the court Mr Nega supplied the Department of Justice false expenditure reports claiming his youth programs cost him far more than he was funded for.
“He reported some programs cost him $100, 000 – $200, 000 but police financial analysis found they would have cost between $20, 000 – $30, 000 as most programs were contributed to by voluntary persons such as the police force,” he said.
Fraud squad detectives intercepted hours of telephone calls spoken in Arabic as part of the investigation spanning two years.
While monitoring the calls police alleged Mr Nega conspired with his son, Daniel Nega, to break the leg of iEmpower’s operations manager Richard Ryan after he raised concerns with the company.
Police took action to protect Mr Ryan and Mr Nega was arrested but gave a no comment interview.
Amid his alleged offending Mr Nega bought a home in Ethiopia and intercepted phone calls revealed he and his wife expressed a “desire to escape everything” following his arrest.
Investigators allege he also reported his financial records had been stolen from his car days after he was notified his accountant’s practice has been raided by police in March 2018.
The allegations against Mr Nega were heard during a successful bail application made in March.
Detectives argued he was a flight risk and an “extreme risk” of interfering with witnesses but he was bailed on the condition he surrender his passport, stay in Victoria and not contact witnesses.
Mr Nega is facing dozens of charges and will reappear in court on September 23.