A veteran Sydney journalist allegedly blackmailed members of a $165 million tax fraud syndicate after conspirators in the group had a falling out, it can be revealed.
Explosive documents tendered in Central Local Court on Thursday state that well-known television journalist and former crime reporter Steve Barrett allegedly blackmailed two members of the syndicate during a meeting at the offices of Clamenz Lawyers on February 1.
More BusinessDay Videos
- Video duration
- 00:23
ATO boss charged over tax fraud
ATO boss charged over tax fraud
Australian Taxation Office Deputy Commissioner Michael Cranston will be charged in connection with an alleged $165 million tax fraud syndicate.
Up Next
ASX winners and losers - a snapshot
- Video duration
- 00:43
- Video duration
- 00:43
ASX winners and losers - a snapshot
ASX winners and losers - a snapshot
The stand out listings traded on the ASX captured at key moments through the day, as indicated by the time stamp in the video.
Up Next
Kombucha: the next superfood?
- Video duration
- 01:22
- Video duration
- 01:22
Kombucha: the next superfood?
Kombucha: the next superfood?
What is kombucha and is it really some sort of cure-all magic elixir?
Up Next
Scheduling work to different body clocks
- Video duration
- 01:01
- Video duration
- 01:01
Scheduling work to different body clocks
Scheduling work to different body clocks
Jeffrey Buckle and Marie Mulherin both say they are able to perform more efficiently with flexible work hours that suit their body clocks.
Up Next
Jobless rate beats expectations
- Video duration
- 01:57
- Video duration
- 01:57
Jobless rate beats expectations
Jobless rate beats expectations
The unemployment rate fell to 5.7 per cent in April due to an increase of people in part-time work.
Up Next
Fairfax boss quizzed on job cuts
- Video duration
- 01:59
- Video duration
- 01:59
Fairfax boss quizzed on job cuts
Fairfax boss quizzed on job cuts
Fairfax CEO Greg Hywood has fronted a public inquiry into the future of journalism, where he's attacked the ABC, discussed salaries and staff cuts.
Up Next
Better than a big new bank tax
- Video duration
- 01:32
- Video duration
- 01:32
Better than a big new bank tax
Better than a big new bank tax
Michael Pascoe has an alternative to the bank tax that would raise $9.5 billion over four years, 50 per cent more than the bank levy.
ATO boss charged over tax fraud
Australian Taxation Office Deputy Commissioner Michael Cranston will be charged in connection with an alleged $165 million tax fraud syndicate.
Eight people were arrested on Thursday over the alleged tax fraud syndicate including Adam and Laura Cranston, the son and daughter of Australian Taxation Office Deputy Commissioner Michael Cranston.
Michael Cranston has also been issued a future court attendance notice for a charge of abusing his position as a public official.
Related Content
The police documents reveal that one syndicate member, Daniel Rostankovski, turned on other conspirators and allegedly tried to extort money from them.
At the February 1 meeting, Mr Rostankovski and Mr Barrett allegedly threatened to expose the conspiracy in the media if money wasn't handed over.
"Police allege ... Rostankovski and Barrett attempted to blackmail the co-conspirators in relation to their involvement in the conspiracy," the police documents state.
Mr Rostankovski allegedly demanded $5 million or Mr Barrett would expose the group in the media.
Mr Rostankovski felt like he had been deceived by the group as other members were receiving more money than him.
The group allegedly agreed to their demands if he didn't go to the media, the police or the ATO. An agreement was signed that outlined such undertakings, the police documents reveal.
Mr Rostankovski, a 28-year-old from Waterloo, was granted strict bail in Central Local Court on Thursday. Mr Barrett has not been charged. He did not return Fairfax Media's calls on Thursday.
Five others were granted strict bail in various courts on Thursday including Adam Cranston, who offered $300,000 surety and surrendered his passport.
Barrett, who previously worked for 60 Minutes, was a long-time employee as a producer in the Channel 7 newsroom but left the network in March 2016, before the alleged blackmail took place.
Australian Federal Police Deputy Commissioner Leanne Close said the syndicate appeared to use the money to fund a "lavish lifestyle".
Among the items seized under proceeds of crime were 25 motor vehicles, including luxury cars and racing cars, 12 motorbikes, 18 residential properties, two aircraft, $1 million from a safe deposit box, firearms, jewellery, bottles of Grange wine and artworks.
ATO Second Commissioner Andrew Mills said two other ATO officers were also being investigated internally for potential code of conduct breaches. It's believed they tried to look up information on the ATO's audit at the behest of Michael Cranston.
The announcement came after nearly 300 police officers on Wednesday carried out raids across Sydney, Wollongong and the Southern Highlands, arresting nine people.
Among those who appeared in court on Thursday are Mr Rostankovski, 28, from Waterloo; Jason Cornell Onley, 47, from Vaucluse; Daniel Hausman, 47, from Woollahra; Christopher James Guillan, 46, from Sutherland; Dev Menon, 33, from Wahroonga and Devyn Hammon, 24, from Balgownie.
Police will allege in court that the syndicate members ran a legitimate payroll company, Plutus Payroll, and accepted money from legitimate clients to process payroll on their behalf.
"This money was transferred to seven sub-contracted companies known as Tier 2 companies, which then made payroll payments to individual workers or clients," the federal police said in a statement.
Tax office investigators, who helped the federal police during the investigation, estimate the amount of tax obligations not paid to the tax office to be $165 million.
Mr Mills described Michael Cranston as one of the organisation's "long-serving senior officers" who had "quite an illustrious [career] up until this point".
Mr Mills said he was confident the tax office's systems had not been compromised nor breached and the accused employees were not able to obtain any information.
"The investigation has so far not revealed any evidence of actual intervention or influence on audit cases, or of money being refunded, or of tax liability being changed," Mr Mills said.
"The information I have to date shows no compromise of the operations of our administration. Our systems, controls and procedures worked effectively and we have been able to successfully isolate and protect the investigation, working well with the Australian Federal Police over many months to build a picture of what has been happening."
Prime Minister Malcolm Turnbull congratulated the federal police for the investigation and "taking the action that they have".