Michael Cranston reveals fears for heavily pregnant daughter as she faces jail term for alleged tax scam

As the ATO confirmed Michael Cranston had quit after being ensnared in a $130m tax evasion racket, he revealed his fears for his daughter, who faces jail.

Michael Cranston, who is not suspected of involvement in the tax scam, arrives at court today Picture: John Grainger

• Michael Cranston charged with abusing position as public official
• Tax boss’s daughter recorded on phone taps

FORMER deputy tax commissioner Michael Cranston, whose official resignation was confirmed today by the ATO, said today he was “very concerned” for his heavily pregnant daughter, who faces up to 10 years jail over an unprecedented white-collar crime.

The ATO confirmed today that Mr Cranston had resigned officially after the Daily Telegraph revealed on Friday that he had quit after 35 years at the organisation.

Today’s were the first public comments from the 58-year-old since he became ensnared in the downfall of a $130 million tax-evasion racket allegedly run by his two children and their five co-conspirators.

Lauren Cranston, right, with mother Robyn, is accused of helping the scammer with their accounting. Picture: Dylan Robinson

Just moments earlier he and 24-year-old daughter Lauren Cranston, who is due to give birth next month, faced the same packed Downing Centre courtroom where their matters were adjourned August 29.

Mr Cranston, who is not suspected of any involvement in the scam, is facing two Commonwealth charges of abusing his power in public office to help his 30-year-son Adam who allegedly spoke to him as authorities closed in on the fraud.

Cranston Snr is accused of “exercising his influence” and “using information” he gained as deputy commissioner to “dishonestly obtain a benefit” for Adam.

Two assistant commissioners working below Mr Cranston in the Private Groups and High Wealth department at the ATO, Scott Burrows and Tony Poulakis, have been stood down pending an internal investigation.

Michael Cranston leaving Downing Centre today. Picture: Dylan Robinson

Lauren, who is accused of day-to-day account keeping inside the syndicate with her friend Devyn Hammond, is facing one count of conspiring to cause loss, which carries up to 10 years prison, and a charge of dealing in proceeds of crime worth $1 million or more.

She left court with her mother yesterday and said nothing but was due to undergo an examination later in the day in connection to a Supreme Court proceeds of crime case.

Daniel Hausman was at court for the first time today. Picture: Dylan Robinson

The Australian Federal Police is attempting to reclaim millions lost through the scam via a civil case against more than 60 individuals and companies it believes are connected to the stolen funds.

Eastern suburbs property develop Daniel Hausman also fronted Downing Centre for the first time yesterday over an allegation he blackmailed the syndicate out of $23 million.

He is accused of teaming up with Daniel Rostankovski, also charged over the alleged scam, and veteran reporter Stephen Barrett to make an extortion demand. His case was also adjourned to August 29.

Originally published as Michael Cranston reveals fears for heavily pregnant daughter as she faces jail term for alleged tax scam