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September 2012

August 2012

The AWU Scandal - the other Slater and Gordon Partner

Bernard Murphy was the other partner in the industrial relations practice at Slater and Gordon. 

Bernard Murphy left the firm at about the same time as Julia Gillard.   On 14 June last year the Gillard Government appointed His Honour Mr Justice Bernard Murphy to the bench of the Federal Court of Australia.

I interviewed Bernard Murphy in 2010.   He was spruiking for my listeners to "log on to the IMF website, that's w w w  dot financial redress dot com dot au, that's financialredress.com.au".   He was very impressive, he sounded like Tim Shaw at his salesman best.  

I wonder how many of His Honour's brother judges could lay claim to the same immediate past experience.   Most of them seem to get appointed to the bench from more conventional backgrounds like being a QC or a barrister.  

Have a listen to the interview and tell me what you think about the then litigation salesman Bernard Murphy and now Justice of the Federal Court, one time supervising partner to Julia Gillard during the time of the AWU/Wilson scandal.


The AWU Scandal - Wilson Charges advice - and link to Slater and Gordon statement "We did nothing wrong".

UPDATE 8 MAY, 2013

I posted this on 29 August, 2012.   It sets out some of the correspondence about Wilson and the accounts.  Remember, Gillard knew about the AWU Workplace Reform Association and did not tell the union.

This is a link to a media statement that Slater and Gordon released in November last year, stating that as soon as Slater and Gordon became aware of a conflict between Wilson's interests and the interests of their client the AWU, Slater and Gordon ceased to act for each of them.

So with Gillard's media statement that "whether or not Bruce Wilson was a client of mine is irrelevant" ringing in my ears, it's difficult to reconcile the records of the time that Slater and Gordon continued to represent Wilson right up to the 17 August meeting at the Commonwealth Bank.

As I said back then, I can't imagine what possible justification or excuse a law firm could have for knowing about the use of a client's corporate name (the AWU) in a privately held incorporated entity, set up for the purpose of raising money using the corporate name.   Take out AWU and insert Qantas or Telstra and see if you can imagine a reputable law firm not telling the client.

UPDATE ENDS

 

Bob Smith (II) wrote this letter to Ian Cambridge and Steve Harrison on 4 August, 1995.

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So, August 4, 1995 and Wilson has been sprung for the AWU Members' Welfare Association No1 account activities.   No one knew about AWU Workplace Reform Association except him, Blewitt and Gillard (my source for this is combined from WA Police Correspondence, Ian Cambridge's speech to Queensland delegates in January 1996, Julia Gillard's departure interview and the report to WA Police of the AWU-WRA fraud in 1996).

Wilson and his girlfriend continued to be an item during this time.   Cambridge's affidavit refers to the two parties to this dispute - ie Bob Smith and Wilson being advised respectively by Maurice Blackburn (John Cain Jr) and Slater and Gordon.

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So Wilson is still represented by Slater and Gordon.   The Victorian AWU Accounts are frozen at this stage.   It would have made paying the bills difficult.

Wilson is now under formal notice that he is being charged internally with the charges being referred to police.   According to Cambridge's affidavit he receives advice from Slater and Gordon.

Wilson and Ms Gillard know what happened when they went away together.   Wilson knows what advice was given to him by Ms Gillard.   Ms Gillard should have been aware that Wilson was being charged with serious fraud matters by his employer and that the charges were being referred to police.

The next step is significant.   Wilson attends the Commonwealth Bank on his last day of service with the union.   Also present is Bob Smith (II) and Jim Collins.   The Commonwealth Bank is instructed to return money to the companies set out in the attached letter.

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Wilson, Bob Smith (II) and Collins then all counter-signed a note to the bank lifting any and all restrictions on bank accounts.

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This is pretty heavy stuff.   I'll post again soon with the intriguing story of what happened next.

 

At the Police Academy we were always told - frauds are investigated on the paperwork and every touch leaves its trace.

 


The AWU Scandal - the boys get sprung

14 July, 1995 was a busy day.

Ralph and Bruce had a new baby, the Construction Industry Fund.   I've attached here a copy of a cheque drawn on the account named in my previous entry, AWU Members Welfare Association No1 Account.

The cheque is for $160,770.00 and it's made out to the boys' new slushy, the Construction Industry Fund.   Here is the bank's internal fax to the boss of Business Banking Peter MacCarthy.   Lisa is asking the boss what to do with the cheque.   She's told that payment has been stopped and not to charge a dishonour fee.  

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The gig was up.   Sprung bad.   Keep in mind that Julia Gillard and Bruce were still an item.   As you will see, Slater and Gordon continued to give Bruce legal advice.   This point is critical in understanding what went on in the next month or so.

The cheque was stopped because the good guys in the union smelled a rat.   They engaged another law firm, Maurice Blackburn and Co, whose partner John Cain Jr wrote this letter on behalf of the union to the bank.

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The AWU Scandal - Fun with Other People's Money part 2

The second account that contains dubious transactions was in fact the first account discovered by union officials.   It was the discovery of this account that led to Wilson and Blewitt leaving the union in August, 1995.   Remember, they have never been quizzed about the AWU Workplace Reform Association, nor about the Construction Industry Fund.

What we know for fact is this.   The Australian Worker's Union Members Welfare Association No1 Account existed before Wilson moved to Victoria.   God knows why it wasn't closed down prior to him coming, and God knows why his operation of the account and the way it was used wasn't discovered sooner.

In any event, it's clear that Wilson and Blewitt were making moves to empty this account in April, 1995.   There was a change of office holders in the union at this time.   For this post I'll only focus on what money was spent from this account - the AWU Members Welfare Association no 1 Account.

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I'll just make a couple of comments.  I don't know what business the union would have had with Town Mode fashion house and I've got no allegations about it.

Bob Kernohan received what he described as an expense reimbursement from this account on 6 April, 1995.   Bob subsequently made a statement to Detective Sergeant A. Turnley, 20778 in which he exposed himself to the penalties of perjury if the statement was false.    Kernohan stated that he was reimbursed expenses by the then union boss Wilson, who chose to pay Kernohan from this account.

You will notice the large number of bank cheques drawn in August, 1995.   Fascinating for a union to be sending money back to the bosses.   More soon.


The AWU Scandal - Fun with Other People's Money

Ian Cambridge and his support team deserve congratulations.   It was an immensely difficult task for Mr Cambridge to assemble all the data about the various entities and their accounts he discovered.

Mr Cambridge's enquiries revealed a number of accounts held by the Commonwealth Bank.   Keep in mind that the existence of the Australian Workers' Union - Workplace Reform Association was unknown to the union until April, 1996.   It is notable that Julia Gillard knew of it when she acted in its establishment in 1992.   Slater and Gordon took money from it in 1993.   Julia Gillard admitted to its existence and her role in its establishment as a "union slush fund" on 11 September, 1995.   Thus the partnership Slater and Gordon was clearly aware of it, and its role in the funding of a house purchased with combined money from it and the Slater and Gordon partnership, by 11 September, 1995 at the latest.

I think it is inexplicable that Julia Gillard did not notify her client, the AWU of both the conflict of interest she had in her relationship with Mr Wilson, nor of the material fact of the AWU Workplace Reform establishment and existence when Wilson's malfeasance was discovered and acted on in August, 1995.   But the actions of the partnership in apparently not notifying the union are more noteworthy.

So to the money from the account.   This is what happened to it.   I am drawing from the Affidavit of Ian Walter Cambridge.

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Some one had a big call for cash in early September, 1993.

The account goes on.

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I investigated Craig Thomson's efforts at the worldwide ATMs.   Bruce Wilson wins.

In particular note the transfer by cheque to a new account called the Construction Industry Fund.   This coincides with Bruce losing the Victorian boss cockey job and planning to move to the Construction Industry branch head role.   More on that soon.


The AWU Scandal - The Mortgage to Blewitt

Slater and Gordon ran an in-house mortgage lending business.   It was represented by Jonathan Malcolm Rothfield who at one stage held this pre-FSR accreditation with the now ASIC link to ASIC record.

You will recall that Slater and Gordon acted for Blewitt in his purchase of 1/85 Kerr Street Fitzroy, with Bruce Wilson signing all the documentation to effect the sale pursuant to a specific Power of Attorney donated to him by Blewitt.

Download Transfer of land

That Power of Attorney makes the following transaction all the more interesting and difficult to understand on the face of it.   Slater and Gordon loaned Ralph Edwin Blewitt an advance of $150,000.   The mortgage documents are signed by Bruce Wilson pursuant to the Power of Attorney dated 4 February, 1993.   The Mortgage includes a covenant that the information supplied by the Mortgagor (Blewitt) in the "application" for the loan is correct.   It says that the loan is conditional on that information being correct.   I would be fascinated to see what enquiries Slater and Gordon went to to satisfy itself as to Blewitt's financial position. Download Mortgage documents

If you are expert in the law that prevailed in Victoria during 1993 in relation to credit providers in these circumstances I wonder if you might be so good as to render an opinion with your credentials inluded.


SBS Go Back To Where You Came From

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I watched the SBS show last night - it's television so it's highly edited.   If you are interested in what I think I've set out a few thoughts below.

 

1. Australia is a great country, I think it's the greatest country on earth.   My forebears fought and some died to keep it great.   My first expectation from our government is that it controls our borders.   We should choose who comes here, there ought be no route for self-selection.   If we can't control that element of our sovereignty we are lost.

 2. A wise man told me this.   Don't weaken a strength to strengthen a weakness.   There are plenty of weak, war-torn countries on earth.   Plenty of places with shocking, archaic cultural practices.   Work on those weaknesses.   Don't weaken Australia's strength in cultural homogeneity and social cohesion in order to make a stab at fixing the weaknesses in other countries.   That is be very careful about importing problems here beyond our capacity properly to assimilate people.

3. Adopt the Hippocratic principle.   First do no harm.   Make absolutely certain that our security insterests are protected.   If you want some insight into what I am saying have a yarn with Abdul Nacer Benbrika in maximum security in one of HM gaols in Victoria.   Or listen to His Honour Justice Bernard Bongiorno's sentencing remarks as he sent Benbrika down.

4. If you are of the mindset described by these words "Australia should do more" please explain what "more" is.   It is very easy unintentionally to do a lot "more" harm than good.   Purchasing food and goods locally with overseas currency easily inflates local prices harming markets and people.   NGOs tend to attract the cream of local people, denuding local populations of their best and brightest and denying them the leaders that could extract them from the misery of war.   Finally should we decide to side with one warlord or another and help them obliterate their clan or tribal enemies?   Who is right and who is wrong?   The United States tried that in Afghanistan and created the monster Osama bin Laden.

5. I think we need to stand up to crazy Islamism.   When the Korans were accidentally burned in Afghanistan that was wrong and more care should have been taken.   But the response?   Kill all Westerners?   Where is the global leadership (Barry Obama in particular) that says to the Islamists "hang on a sec, you blokes have to learn to pull your horns in, you are wrong in your reaction".   I don't know why we kowtow so deeply.   Don't kill people please.   Go easy on the guns and bombs.   And have an enlightenment so that practices like female genital mutilation are stopped.

6. Put the effort in to assimilating people who are afforded one of the greatest gifts on earth - Australian residency and citizenship.   To live here properly you should speak English and know the law and customs, otherwise your life will be so much harder and less pleasant.   We need to put that effort in, to make sure we take the job seriously - that is a duty both to ourselves and to people we invite to come here.

I would be pleased to hear from you - let me know what you think.   You can see the episode of Go Back to Where You Came From at the link.


The AWU Scandal - Column - Slush me

Does anyone believe that two union officials were meant to get an extra, untaxed $540,000 after their time in the Australian Workers’ Union?

It’s been a bit lost in the wash, but Bruce and Ralph took off after $540,000 went into the union slush fund that Julia Gillard helped them set up.

At least $540,000 disappeared.  Last seen in cash cheques and Bruce’s trendy Fitzroy pad.    It’s not down the back of the lounge in Paul Howes’office.   

Maybe Paul thinks that Bruce and Ralph are the rightful owners of the money.   It would be nice if he’d say so.   Stranger things have happened than for a union to decide that its members should support the enrichment of an official to the tune of a few hundred large. 

We know the money went into a thing Julia Gillard called a“union slush fund”.   She wrote out the words “Australian Workers’ Union – Workplace Reform Association” on the form used by lawyers in-the-know for slush fund creation.   The document might have got an A+ in creative writing but it missed the mark in describing electoral activities.   Put it down to youth and naïveté. 

 It is possible that Bruce’s girlfriend was holding back on details in what was put forward to the WA Corporate Affairs Commissioner.   And the commish probably allowed a bit of leeway because it was Ralph and Bruce’s second stab at incorporating their safe-election-entity.   That’s why Bruce and Ralph turned to the girlfriend with the degree.   Bruce’s new application sure stood out against the ping-pong, lacrosse and kids footy clubs who make more routine use of the Associations laws.

Some one with an LLB drafted about 9 pages of rules for the association and Ms Gillard said in her departure interview that no other lawyer worked on this job.   Bruce said his first try at rego was knocked back for want of lawyerliness.   I speak with Bruce a lot.   He talks Aussie English like me.   He is a funny bugger but not given to judicial turns of phrase.  On the balance of probabilities Julia, his ex-missus wrote the legalese in that relationship.

The drafting skills in “objects of the association”went beyond the written word.  Subliminal messaging techniques were employed to convey the impression the application was for a union slush fund, because words like “union election” or similar are not visible to the naked eye.  

The document is notable for its adroit use of euphemistic language like “safe work practices”, a known literary-device meaning “slush fund”.

Many would find difficulty maintaining straightness of face, while saying they didn’t know the sham association was the source of the $67,722.30 cheque that the boyfriend and the bagman signed to buy their house.    Clues to the truth can be found in a place many have neglected to check, i.e. the cheque.   Ralph’s script is on union slush fund cheque number 2230, with the words “Slater and Gordon Trust Acc” written after the word Pay.   Ralph knows people are tempted to defraud, to misrepresent or to steal, so he crossed out “or Bearer”.   This cheque was meant for one lawyers trust account only.   A particularly helpful one, given to the advancement of safety and no-doc mortgages. 

Another clue to the source of the funds comes from the Commonwealth Bank cheque book printers.  There, in cheque-style printing on the bottom of the cheque, are the words “AWU Workplace Reform Association”.

Slater and Gordon's Trust Account General Ledger gives a deeper understanding of the financing of Ralph and Bruce’s pad.    A certified true copy of the ledger is designated exhibit ICW26 appended to the affidavit of Ian Walter Cambridge sworn on 19 September 1996.   Hints to Bruce's status as a highly valued client/boyfriend/high-finance-type include the handwritten notes about the conveyancing fee, with clues like "write off $747.80 against union" in a helper's handwriting.  And don’t get me started on the $150,000 mortgage Julia’s partnership gave Ralph after Bruce signed him up for it.   It’s a long story involving pesky details like credit laws.

The PM reckons it’s case closed because she fronted a roomful of Canberra-based press gallery journalists whose currency is access.   “Access Denied” is a bit like a death sentence to a Canberra gallery slave, like exile to Milnelba where there’s no ABC reception.  

The gallery were huddled in the message-delivery room to be told how they felt about refugee numbers.   But events overtook them and the agenda for the day was postponed sine die.

Invalidity had occurred in the management of the nation and only PM-Action could fix it.  The Australian newspaper had misused the word “trust”.   Imagine that.   Abusing a poor old-fashioned notion like trust.   In describing the prime-minister’s involvement in the AWU matter, The Australian reverted to olden days ways and connected trust with – never mind.   What they meant to say was slush, a much more contemporary and fashionable notion.

The PM had concluded that using the word “trust” when they meant to say “slush” was a defamation of the highest order.   Normal broadcasting was suspended.   The trust/slush mixup had potential for national catastrophe so boat-people had to wait.  For the next hour or so the national interest demanded immediate, impromptu and absolutely last-chance attention to the AWU issue.    Thus we got 60 odd minutes of prime-ministerial answers to the wrong questions about missing money.    

And so it went, wrong question, vague answer, wrong question, vague answer then a zinger, “how does it feel to be so terribly treated as a woman” or something.

If Bruce’s ex had been defamed, she could have sued.   You’d reckon the PM would know someone who still had a valid practising certificate and wasn’t rendered unavailable by reason of appointment to the bench.   And if not, Craig Thomson would be happy to lend her the Sussex Street do-it-yourself Guide to Home Renovations Funded by Defamation Payouts (Dastyari revision-updated).

Watching the bravura bulltish from Canberra I drifted off and started dreaming about Chris Skase.  I saw a beautifully crafted newspaper headline - Skase Declares Case Closed.   Yesterday Christopher Skase walked into Chatswood Police Station and said to the duty probationary constable, “I understand police have some questions to ask me about a couple of transactions.   Go your hardest for the next hour old son.   At the expiration of 60 minutes I will announce the case closed and my obligation to answer your questions concluded.   Don’t let your lack of preparation or the absence of your files hinder your investigation Constable, I am here to help.   Lock the doors, do not admit further of your specialist squad colleagues, let’s get this cleared up for once and for all.”

Anyone know a young and naïve helper good at sums? Slush me, I'm here to help.


The AWU Scandal - the Slater and Gordon Trust Account General Ledger

If I was the supervising partner listed on this document and I had not been appraised of the source of the funds for this real estate transaction I would be very angry.

I note that the Header for the reference lists the responsible partner as NSB.   I know that there was a Nick Styant Brown as a partner at the time.

I note that the General Ledger lists the write-off $747.80 in fees on the transaction.   The handwritten notes say w/o against union.

 

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