The sentencing of a man who stole $105 million from taxpayers in one of the largest tax fraud cases ever brought to court in Australia must wait until Commonwealth and state officials agree on who would foot the about $50,000 in legal costs.
The court will consider all options, “however unpalatable,” if the disagreement cannot be resolved, the judge has warned.
Adam Cranston was a key architect of the Plutus Payroll conspiracy, which for years diverted funds from the tax office while his father, the deputy commissioner, was found not guilty in 2019, was at the helm.
Lauren, the younger sister, participated in the scheme as well and was sentenced to prison in May for a minimum of five years.
Patrick Willmott, a buddy from their youth, was sentenced to at least six years in prison on Friday.
The “Ben-Hur” of tax theft, according to Cranston in secret recordings, Plutus Payroll siphoned out at least $105 million from government coffers using a network of low-level businesses run on paper by uninformed individuals.
In March, four other people, including the 36-year-old son of the former deputy tax commissioner Michael Cranston, were convicted guilty of conspiring to commit money laundering and tax fraud.
It came after “one of the most serious federal tax fraud trials successfully prosecuted in this country,” according to Justice Anthony Payne.
Cranston has been receiving financial aid from the Commonwealth since May 2021 because to his inability to pay for legal representation or represent himself.
After a protracted nine-month trial that proved his guilt to a jury that had been relieved of its duty to serve on another panel for 20 years, it came to an end.
He has now been asked for a grant, just like it was requested for the other conspirators, through NSW LegalAid.
On Thursday, Justice Payne was “flabbergasted” to find Cranston wouldn’t be receiving any further help from the Commonwealth.
He directed that transcripts of that hearing covering the times he wasn’t “lost for words” be forwarded to NSW LegalAid and the office of Attorney-General Mark Dreyfus.
Prior to the hearing on Tuesday, the latter stated that it had received an application but would not be able to decide until June.
According to a letter from the Attorney-General’s Office to Cranston’s attorney, which was delivered in court on Tuesday and obtained by AAP, $16,363.60 was retroactively approved for a senior barrister to attend court in February.
Nevertheless, an additional $491,172.88 was rejected because it did not fulfill “the purpose of the special circumstance scheme”.
In order to prepare for and participate in his sentencing, Cranston needs money for some legal expenses, psychiatric evaluations, and a senior barrister and solicitor.
The court questioned, “So this whole argument is about who should pay the roughly $40,000—the commonwealth or the state?”
He said that if switching to state-funded legal aid necessitated educating new counsel about the protracted trial, the expense might increase tremendously.
The judge stated that although Cranston’s offences included grave violations of federal law, they were tried in NSW courts.
When Cranston was arrested, money meant for the government was instead spent on expensive cars, homes, and other seized assets.
In order to “send a message to others who might be tempted to steal from the tax system,” the judge is “anxious” to punish Cranston as soon as is reasonably possible. However, he warned that further delays could weaken the message.
On June 13, the NSW Supreme Court will decide if legal funding has been offered.
