Street Swags founder Jean Madden arrested
A FORMER Young Australian of the Year was charged with fraud after allegedly obtaining hundreds of thousands of dollars in unauthorised expenses.
A FORMER Young Australian of the Year finalist was charged with fraud after allegedly obtaining hundreds of thousands of dollars in unauthorised expenses at an acclaimed Queensland charity.
The Street Swags founder and former chief executive Jean Madden was charged with fraud after allegedly taking over the charity’s website, emails and bank accounts on the weekend.
The one-time Queensland Young Australian of the Year was arrested after voluntarily attending the Indooroopilly police station yesterday for an interview, The Courier-Mail can reveal.
She was driven in the back of a police car to the Brisbane watch-house where she was granted bail soon after. Police confirmed a “36-year-old woman from Upper Brookfield” was charged with one count of fraud for “dishonestly causing detriment” to the charity.
The charge related to her “dishonestly causing the inability to operate and manage an organisation”, a police spokeswoman said.
However, Ms Madden has denied the claims and posted a video to YouTube where she appeared calm and smiled throughout, saying she looked “forward to having the accounts audited”.
“Street Swags VISA debit card in my name was used for company running costs. To have racked up $170,000 worth, that would have to be at least five years’ worth. As a charity, we get audited every year, so have these transactions,” she said in the video.
“To have misappropriated $441,000, which is what I’m accused of, is physically impossible, because it’s more than the total expenditure for the entire organisation.”
Ms Madden was sacked from the charity in May for allegedly racking up more than $440,000 in unauthorised expenses and other issues, and had earlier resigned as a director.
Street Swags directors woke on Sunday to discover Ms Madden had taken over the charity’s website, inserting a video of herself alongside a message that said the organisation was closed until management issues could be resolved and investigated.
The charity was forced to post a message on Facebook assuring supporters that it was still operating.
“We are aware of media reports that Street Swags is closed for business. We are not closed for business,” it said.
“We are operating as we always have, providing Street Swags to those that are in need. Our website and e-mail systems have been hacked over the weekend. We are working to resolve this immediately. Our bank accounts are secure. In the meantime, there are legal proceedings in process and, for this reason, we cannot comment any further.
“Please continue to be patient and understanding with us. Your support is important at this difficult time.’’
Ms Madden had also allegedly gained control of the charity’s emails — giving her access to sensitive legal correspondence and other material — and bank accounts.
It is understood detectives are investigating alleged transfers out of the bank accounts. Police have also confirmed they have received a forensic report on the charity’s finances and a fraud investigation is ongoing.
When The Courier-Mail contacted Ms Madden earlier this week, she claimed to own the charity’s web address and insisted she was still a director.
Her supporters last week held a meeting at Upper Brookfield in which they had resolved to sack or suspend directors, she said.
Street Swags founder Jean Madden arrested, expected to be charged with fraud shortly. pic.twitter.com/7jBHHjhzRP
— Kate Kyriacou (@KateKyriacou) July 19, 2016
Street Swags took Ms Madden to court on Monday in a bid to force her to return control of the website, emails and other accounts. The Supreme Court civil case was adjourned until yesterday to give the parties time to consult with their lawyers.
Separately, a magistrate last month ordered Ms Madden to return a new Toyota LandCruiser and crucial accounting software to the charity after she refused to hand them over, as revealed in The Sunday Mail on the weekend.
Ms Madden founded Street Swags in 2010 after coming up with the idea of providing the homeless with canvas bags that convert to bedding.
But the charity hit troubled waters when Ms Madden recently tried to branch out into cabins for the homeless with her “Swags with Walls” project, which became mired in controversy after accusations she gave her de facto partner a $528,000-a-year contract to build them.
Ms Madden has said she was upfront about her relationship and has also provided an explanation for how her $170,000 in credit card spending was for legitimate business purposes.
She has said it was “physically impossible” for her to incur the expenses alleged and that she initially did not return the 4WD because she was owed money.
She was granted bail to appear in court on August 4.
Originally published as Street Swags founder Jean Madden arrested
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