Brothel Owner Sues Crowne Casino

20 July 2007

A brothel owner is suing Crown casino over claims it "willfully and recklessly" allowed a corrupt accountant to gamble away millions of dollars in stolen funds. A sensational Supreme Court writ seen by the Herald Sun alleges casino chiefs accepted hundreds of checks from disgraced former Geelong mayor Frank De Stefano, even though they knew he had obtained the money illegally. De Stefano was jailed for 10 years in 2003 for stealing $8.6 million from 12 clients of his Geelong accountancy firm. Most of it was lost at the casino during a seven-year gambling binge.

His victims included Donna Murdoch, the owner of the Main Course brothel in Dudley St, West Melbourne. Ms Murdoch's companies invested more than $1 million with De Stefano. In a 27-page statement of claim, Ms Murdoch claims Crown provided De Stefano with a personal check-cashing facility that allowed him to draw funds directly from his accounting firm's St George Bank trust account.

"Crown knowingly received funds obtained in breach of trust and knowingly and dishonestly assisted the breaches of trust," it states. The writ alleges the casino increased De Stefano's check-cashing facility on 450 occasions "in order to permit De Stefano to gamble, or continue gambling, notwithstanding that the limit . . . had been exhausted". The alleged bank check scam involved a Crown staffer telephoning De Stefano two days before his checks were presented "to ensure that he had transferred funds . . . to cover the value of the checks�.

Ms Murdoch alleges De Stefano presented Crown with 167 bank checks totaling $10.9 million during the course of his gambling spree, before he was caught in 2001.She claims another 77 checks totaling $976,500 were dishonored but that the scam went on regardless. The law suit extends to the St George Bank, which Ms Murdoch accuses of assisting in the crimes. She is seeking losses, plus interest and damages.

A St George Bank spokeswoman said it would be strenuously defending the allegations. In its statement of defense lodged with the court, Crown denies any wrongdoing. �Crown's conduct was not dishonest by the ordinary standards of reasonable and honest people,�" the document states. �Crown was not . . . unjustly enriched.�

The allegations against the casino follow a similar Supreme Court writ lodged this year by multi-millionaire Gold Coast property developer Harry Kakavas. Mr Kakavas alleges Crown allowed him to blow more than $30 million during a 14-month gambling spree despite being a banned problem gambler. Crown is yet to file a defense to the allegations.

De Stefano's defense team alleged he had succumbed to being treated like royalty in the casino. In sentencing him, Supreme Court Justice Murray Kellam said De Stefano's crimes had been callous and cruel.

OCN Staff

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