Lempriere Grain: Allegation of fraud led in court

Lempriere Grain, which collapsed in March 2019, was the victim of a large fraud a decade earlier, a court has heard.

Lempriere Grain claims to have lost $2-$3 million, having fallen victim to a large fraud in 2009. Picture: Zoe Phillips

A grain company that collapsed in March 2019 was the victim of large fraud a decade earlier, according to evidence presented in the Federal Court.

Lempriere Grain claimed to have lost $2-$3 million in 2009 and held employees Marcus Currie and Wendy Pepper responsible for misleading the company’s directors as to its financial position.

Mr Currie has denied the accusations.

Grain trader Lempriere Grain was jointly owned by Singapore-based Ajay Aggarwal and companies owned by Melbourne businessman Will Lempriere.

Mr Aggarwal spent two days last week being examined in the Federal Court over Lempriere Grain’s 2019 collapse, owing about $9 million to unsecured creditors, many of them grain growers and other traders.

In an email sent to Mr Aggarwal on November 24, 2010, Mr Lempriere said Lempriere Grain had sustained losses of at least $2.5 million since February the previous year but not from normal grain trading.

He said Lempriere Grain appointed insolvency expert McGrathNicol to investigate the losses.

“Whilst their report was inconclusive with regard to how money was misappropriated from the firm, there was no doubt that fraud had been committed,” he said.

“The losses incurred by the business and the fraudulent preparation of the accounts meant that the directors had to urgently replace the NAB facility with their own funds.

“Marcus Currie maintained and built a competing business to LG, thus breaching his fiduciary duties both as a director and an officer of the company.”

Australian Securities and Investments Commission documents show Mr Currie was a director of Lempriere Grain from August 15, 2003, to March 2, 2010.

He was also a director of Origin Grain Pty Ltd from January 20, 2000, to January 6, 2005.

He later rejoined Origin Grain as a director from September 3, 2010, where he has remained.

Mr Currie has been a part-owner of Origin Grain, which operates out of Beechworth in northern Victoria, since 2000.

Mr Aggarwal told the Federal Court it was Mr Currie’s idea to establish Lempriere Grain and he became day-to-day manager of the grain trader from its inception.

He said it wasn’t until Mr Currie left Lempriere Grain in 2010 the losses were discovered.

Mr Aggarwal said the owners of Lempriere Grain consider pursuing Mr Currie and Ms Pepper legally but gave up because it ”would be throwing good money after bad”.

Mr Currie told The Weekly Times he had nothing to do with Lempriere Grain for a very long time.

“I dispute those accusations,” he said.

“I have no further comment to make”.

The Weekly Times was unable to contact Ms Pepper.

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