Trial of Guy Sebastian’s ex-manager Titus Day halted by juror illness

A new health emergency has paused the $900,000 embezzlement trial of Australian music star Guy Sebastian’s former manager just hours after it resumed.

A new health emergency has delayed the embezzlement trial of Guy Sebastian’s former manager, just hours after it resumed on Monday.

The Australian music and reality TV star returned to the witness box briefly on Monday when Titus Day’s embezzlement trial resumed following the death of the first judge appointed to run proceedings.

Shortly before 2pm, just as Mr Sebastian was due to continue giving evidence, an ambulance was called to Sydney’s Downing Centre court precinct after a juror began to suffer an adverse reaction to food.

Mr Day, 49, has pleaded not guilty to 50 counts of fraudulently embezzling about $900,000 worth of royalty, performance and ambassador payments which were allegedly meant to go to Mr Sebastian.

After starting in the NSW District Court two weeks ago, the trial came to an abrupt halt after the jury was told judge Peter Zahra SC had suffered a stroke.

The trial of Guy Sebastian’s former manager Titus Day’s has been interrupted several times for medical emergencies.

Mr Sebastian also tested positive to Covid-19 and was forced to isolate around the same time.

Judge Zahra died last week and new judge Tim Gartelmann SC was announced as his replacement on Monday.

Crown prosecutor David Morthers SC spent most of Monday showing Mr Sebastian emails and bank statements and questioning him about a range of transactions and working relationships.

Peter Zahra, who died during the trial, was one of NSW’s most respected judges. Picture: 9News

The court was told in 2016 Mr Sebastian made contact with a manager in Germany named Tessy Schultz, but they were unable to develop a one-on-one client relationship after Mr Day got involved.

“At the time there were certain songs resonating over there (Germany),” Mr Sebastian told court.

“I thought it would be prudent to have someone who understood the market over there. I wanted it to be a direct relationship between me and Tessy.”

Mr Sebastian said he arranged to meet Ms Schultz in Hamburg, but “Titus ended up coming along to that meeting”.

“I remember feeling awkward,” Mr Sebastian told the court.

“I really wanted to meet Tessy alone.”

Mr Day did “a deal” with Ms Schultz and “split up the commissions accordingly”, Mr Sebastian told the court.

“No they did not,” Mr Sebastian said when asked if anyone from Mr Day’s company, 6 Degrees, told him he was obligated to pay Ms Schultz.

“No I did not,” Mr Sebastian said when asked if he authorised payments to be made from 6 Degrees to Ms Schultz.

Mr Sebastian rose to fame after winning Australian Idol.

Mr Day claims Mr Sebastian owes him money.

The court was told when conflict arose about Mr Sebastian’s finances, Mr Day expressed concern about Mr Sebastian’s accountant, Dorcas Kemp, and suggested there was “incompetence” on the part of the accounting company George Kemp and Associates.

“There were several times where Titus would bring up Dorcas … generally the line that he would say was, ‘I’m your manager, she’s your accountant, she shouldn’t cross a line,’” Mr Sebastian told the court.

“I did start to believe there was some conflict between my management and my bookkeepers and that made it quite difficult for me.

“I did change my accountants.”

After excerpts from multiple emails Mr Day sent Mr Sebastian – promising him a 10 per cent equity stake in 6 Degrees and another a stake in Solar D sunscreen company – were read to the court, Mr Sebastian said he was never given a stake in anything.

The trial is due to resume on Tuesday morning.

Judge Zahra’s funeral is due to be held on Friday.

May 4: Guy Sebastian test positive to Covid

Guy Sebastian has tested positive to Covid on the second day of giving evidence in the $900,000 embezzlement trial against his former manager, Titus Day.

The top Australian pop singer appeared briefly at Downing Centre District Court on Thursday before the case was adjourned to Monday due to Judge Peter Zahra becoming ill.

On returning home, Sebastian tested positive to Covid after taking a RAT, forcing the 40-year-old to postpone two shows on his upcoming T.R.U.T.H tour.

“I am absolutely gutted,” Sebastian said. “I was so looking forward to performing in Cairns and Townsville next week.

“I am so sorry to disappoint my fans and I promise to do something even more special once I’m able to perform as a thank you for your patience and understanding.”

Guy Sebastian’s former manager Titus Day has pleaded not guilty. Picture: Matrix

Mr Sebastian is the Crown’s star witness. Picture: Jeremy Piper

Sebastian was scheduled to appear in court on Monday.

The high profile court case comes as Sebastian is midway through his national tour.

He has already played four of five sell out shows at ICC Sydney and was to perform at the Cairns Convention Centre on Tuesday and the Townsville Entertainment Centre the following night.

Ticketholders were being notified by email regarding details for rescheduled shows.

His Gold Coast show next Friday is expected to proceed as normal with dates also booked for Brisbane, Hobart, Melbourne, Perth and Bendigo.

“Touring in these times is certainly challenging however what will always remain a number one priority is the safety and wellbeing of our artists, fans, touring crew and venue staff,” TEG Live managing director Tim McGregor said.

“I can assure you that we are working hard to confirm the rescheduled dates and ticket holders will be notified shortly. We look forward to getting the show back on the road as soon as possible.”

Judge James Bennett on Thursday morning acknowledged the fact Judge Zahra falling ill was an inconvenience however said “no other steps can be taken” until he had returned.

Day, who managed the former Australian Idol singer for a decade, has pleaded not guilty to 50 charges of fraudulent embezzling and 50 alternative charges of larceny or stealing.

Yesterday, the court heard that Guy Sebastian’s former manager allegedly stole money earned by the singer supporting Taylor Swift on her Australian tour.

Sydney’s Downing Centre District Court was told Sebastian was to be paid $494,360 for playing the four shows in December 2013 but received just over half the amount of $297,500.

Titus Day, 49, has pleaded not guilty to 50 counts of fraudulently embezzling royalty payments, performance and ambassadorship fees and 50 alternative charges of larceny, or stealing. In total he is accused of stealing $900,000.

Crown Prosecutor David Morters SC spent the first half of Tuesday briefing the 14-member jury on the case, outlining several incidents in which Sebastian was not paid the full fee for his performances including weddings in Venice, Jakarta and Sydney, a conference for fast-food chain McDonald’s and a Dreamworld ambassadorship.

Titus Day arrives at Downing Centre Court in Sydney on May 4. Picture: Dylan Coker

Sebastian is the star witness in the high profile case, which started on Monday and is expected to last up to five weeks.

He took to the stand just before lunch and spent much of the afternoon explaining terminology of the management/artist relationship.

The Voice coach revealed he regularly signed contracts and other documents without reading them because he trusted Day, whom he was first introduced to in 2006.

It was Day’s wife, Courtney, who worked in A & R (artist and repertoire) at Sony Music Australia that introduced the pair before Sebastian came under his charge first at 22 Management and then when he formed his own company, 6 Degrees.

The relationship fell apart in 2017 with the pair parting ways in November that year and subsequently led to Day being arrested at his Bondi home.

“There was often times where I would be presented things to sign, there was a lot of things to sign, especially around making an album, there’s a lot of producer agreements and things like that,” Sebastian told the court.

“It wasn’t uncommon for contacts or agreements to be put in front of me and for me to sign.”

He clarified that Day was also a lawyer, which added to his level of trust in his manager.

“One of the benefits of my manager was that he was a contract lawyer so I trusted that if he put something in front of me, he wouldn’t do so unless it was ready to be signed.”

In his opening submissions, defence barrister Dominic Toomey SC set up his case representing Day.

He claimed police had been “seduced perhaps by Mr Sebastian’s high profile” and suggested both police and Sebastian had “ulterior purpose” in pursuing Day.

In his counter claim against Sebastian, Day will argue that he was entitled to fees from contra arrangements he had helped set up for his client over the years.

The court heard Sebastian was paid a cash fee of $82,500 for his ambassadorship with audio company Bose, as well as receiving various product to use in the course of his job.

Guy Sebastian told the court he put his confidence in his legal team. Picture: NCA NewsWire / Gaye Gerard

A Toyota ambassadorship was all contra with Sebastian receiving a Landcruiser and his wife, Jules, a Prado, for performing gigs and to “appear at various charity events”.

“I would promote things like National Tree Day that Toyota were involved in.”

“It (the car) was just on lend so they would swap it over every now and then,” Sebastian said. “It was basically one of their fleet cars I believe.”

He earnt $75,000 for an Air Asia ambassadorship, and was given extra flights with the deal

The court heard there were also arrangements with Blue Fin Boats, Sennheiser and Canon.

Sebastian testified that it was not usual practice for a manager to take commission on contra arrangements.

“I don’t believe I have ever paid commission really ever on any contra in my career,” he said.

Sebastian will again take to the stand on Tuesday. His wife, Jules, accountant brother Jeremy and former management representative Sean Anderson are also expected to give evidence over the coming weeks.

Originally published as Trial of Guy Sebastian’s ex-manager Titus Day halted by juror illness