North Queensland man, former Mass Nutrition manager Philip Gerard Smith sentenced in Townsville District Court for $60k fraud offending

Holidays, legal fees and home entertainment were some of the purchases a former NQ supplements store manager paid for using the work business card landing him in jail.

North Queensland man, former Mass Nutrition manager Philip Gerard Smith sentenced in Townsville District Court for $60k fraud offending

A man who was trusted with business accounts of the store he managed and was a director of, has been jailed after spending more than $60,000 of the organisation’s money on his own personal purchases.

Philip Gerard Smith appeared in Townsville District Court this week after being caught taking cash from his previous workplace, formerly named Mass Nutrition over a two-year period.

Crown prosecutor Nicole Butler said the 39-year-old was a director and store manager of the Currajong store and used the business’ accounts as an “extension of personal finances” from January 2017 to June 2019.

“He used business debit cards for personal expenses and direct debits for home entertainment, legal fees, holidays and private car expenses,” she said.

The court was told the offending came to light when a bookkeeper alerted the owners of “anomalies” in the accounts and flagged the business had come into a “dire” financial status.

“(The owners) became aware of significant debts that had been allowed to accrue to suppliers and were referred to debt collectors,” Ms Butler said.

“He was given a Show Cause letter and when he didn’t respond he was dismissed.”

Ms Butler said Smith challenged the dismissal and made a claim with Fair Work who rejected his request and from there underwent an investigation into the man’s dealings which consequently exposed the money he had spent from the business.

The court was told after the offending was reported to police they conducted a search of the man’s Townsville home and found him to be in possession of a small amount of testosterone.

A victim impact statement prepared by two of the business partners detailed the distrust they now have in the wider community, with one of the former partners sitting at the back of the courtroom to watch the proceedings unfold and as the crown mentioned, “seek closure”.

Generic photo, Townsville Court House. Picture: Shae Beplate.

Defence barrister Anthony Kimmins who submitted a psychology report to the court, highlighted Smith admitted he knew he had “pushed the boundaries” in terms of spending but didn’t believe he was committing fraud.

“I’d submit in this case there was a lack of insight in the offence he was involved in,” Mr Kimmins said.

He elaborated on the man’s mental health at the time of offending and shared that the former manager was not in the right mind state to make lawful decisions, with the psychologist report stating the man claimed to have felt “trapped” and “helpless” during the time of offending.

Mr Kimmins said Smith had since left Townsville and moved to Newcastle to start a new life due to the negativity that followed the charges, even beginning a new business venture in his new hometown.

“His life now is a quiet life and he works away from people,” Mr Kimmins said.

The court was also made aware the man committed the offences while on a suspended sentence after being charged with and sentenced for assault occasioning bodily harm in 2015.

Mr Kimmins added the man served six months in jail in 2007 for a charge of manslaughter that he was later acquitted of and said it could be considered as time served in pre-sentence custody, despite it occurring almost a decade prior to the current offending.

Judge Carl Heaton took the time served in pre-sentence custody into consideration while sentencing the man, as well as the man’s proven ability to build a business, work in the community and give back to society in his former charity work.

“I note your expressions of remorse and while I take them at face value the weight is undermined by your failure to make any efforts to repay the money you have stolen,” His Honour said.

Smith pleaded guilty to fraud as a director in excess of $30,000 and possessing drugs.

He was sentenced to three years’ jail, wholly suspended after serving nine months.

The six-months of pre-sentence custody was declared as time served.

Originally published as North Queensland man, former Mass Nutrition manager Philip Gerard Smith sentenced in Townsville District Court for $60k fraud offending