‘They’ll find nothing’: Seven’s fury over AFP hunt for Schapelle Corby cash

FEDERAL police yesterday launched a series of dramatic raids on Seven West Media in a bid to prevent Schapelle Corby from selling her story.

AUSTRALIAN Federal Police yesterday launched a series of dramatic raids on Kerry Stokes’s Seven West Media in a bid to prevent Schapelle Corby from selling her story to the television and magazines group, which continues to insist it has not paid any money to the convicted drug smuggler.

In what Seven chief executive Tim Worner described as “overkill”, dozens of AFP officers — many of them armed with guns — spent up to eight hours trawling through documents at the group’s corporate head office in inner-city Sydney, the nearby premises of the Sunday Night program and New Idea magazine and the offices of lawyers working for the company.

“This is without justification and quite possibly unprecedented for a media organisation,” Mr Worner said last night. A number of computer hard drives were seized, as were documents that may contain communication relating to a purported media deal between Seven and the Corbys.

The AFP first requested documents be handed over on February 11, and while Seven insists it co-operated fully with the agency, the federal police did not believe the media company was being completely transparent and successfully applied to a magistrate for a search warrant.

An AFP spokesman said the search warrants were necessary and its officers were looking for any evidence the company had struck a deal to allow Corby to profit from her crimes.

“These search warrants were conducted in relation to the Proceeds of Crime Act 2002, which provides the legislative framework for the restraint and forfeiture of the proceeds of crime against Australian law. This includes provisions for literary proceeds, where a person profits from their criminal notoriety,” the spokesman said. “Literary proceeds action does not prevent a person from telling his or her story to the media. The provisions do not interfere with freedom of speech. The purpose of the provision is to prevent a person deriving a financial benefit from criminal activity.”

The AFP will not pursue criminal charges under the Proceeds of Crime Act, but may attempt to confiscate any payment money if they can establish one has been made or agreed to. The AFP is only able to confiscate funds if the payment is made in Australia or if Corby attempts to transfer the money back to Australia.

The release of Corby last week after nine years in a Bali jail for drug smuggling triggered a fierce bidding war for exclusive access to the former Gold Coast beautician, with Seven ultimately getting the upper hand over its arch-rival Nine.

Mr Worner, Seven executive chairman Kerry Stokes and commercial director Bruce McWilliam were yesterday “furious” at the raids, with Mr McWilliam saying the network had been fully co-operating with the federal authorities.

“The AFP has previously asked for information on Schapelle Corby and any contract we may have entered into, and we provided all the information requested from us and instructed our lawyers to provide any additional information they might have,” Mr McWilliam said. “The AFP did not seem to accept that we have not reached an agreement or understanding with Schapelle Corby.”

Mr McWilliam said the raids were upsetting to staff, describing the officers as “goons ... storming in and terrorising” staff who were beginning their day’s work. They barged in wanting to look at the payment registers which is completely outrageous,” he said.

“It’s a big attack on the press. It’s terrible what’s happening. I do think it’s laughable because we gave the material over in relation to the production order.”

Mr McWilliam said a senior government minister had called him to “express regret” over the raids.

Later, federal Attorney-General George Brandis told The Australian the government was committed to ensuring Corby would not profit from her time in jail.

“The government does not believe that people should profit from the proceeds of crime. That is why we support the Proceeds of Crime Act, and that is why it is appropriate that it should be enforced in all appropriate cases,” he said. “The (AFP) decision to conduct their operation in relation to Channel Seven had no involvement from the political level of government whatsoever.”

Seven itself initially reported an agreement with the Corbys for an exclusive interview had been made and provided to the police, although Mr McWilliam subsequently said that “no one has reached an agreement — I think that’s the element the federal police don’t accept”.

Mr McWilliam said Seven’s offer for the exclusive interview with Corby was well under $1 million — not the $2m reported. It would include an interview with its Sunday Night program and in its weekly magazine New Idea.

Veteran journalist and Sunday Night reporter Mike Willesee fronted the media in Bali yesterday, reiterating that no deal had been signed with Corby but said Seven was in the box seat when it was appropriate for her to give an interview.

“We’ve positioned ourselves to be the first in line if there is an interview. There is no deal,” he said. “(The raid) will find nothing. They will find no payment because there is no payment.”

The raids yesterday were not the result of a request from the Indonesian government or law enforcement agencies, and were initiated by the AFP itself.

Should any documentary evidence of an agreement be found, it is unlikely anyone will face prosecution under the act. Rather, the legislation allows police to trace and confiscate money paid to Australian citizens, but this could only be done if that money was paid in Australia or an attempt was made to transfer it back into the country from oversees.

It is understood those payments in kind already made by Seven to the Corbys, which Mr McWilliam said included the cost of her current luxury accommodation in Bali, cannot be confiscated under the act.

Additional reporting: Sally Jackson