Suspended jail for secret kickback scammer
A CAIRNS man has avoided jail time for his part in a business scam involving secret commissions.
The Cairns District Court was told that Roberto Lorefice, who ran a waterproofing business, had an arrangement to pay a man named Brendan Allan Lyne 20 per cent of any work Mr Lyne secured for him.
Mr Lyne was the general manager of David McCoy Homes (DMH), a company owned by Kenfrost 1987 Pty Ltd.
The court was told that DMH subcontracted certain work to various tradesmen, including waterproofing and surveying and, as the general manager, Mr Lyne had authority to enter into contracts on behalf of the company.
Between March 2007 and January 2009 Lorefice entered into contracts totalling $346,000 through his arrangement with Mr Lyne, who received $69,211 in secret commissions.
During that time, Lorefice and Mr Lyne also teamed up and created a sham company, which received $148,511 in contracts for surveying work.
The court was told the pair subcontracted out the work to surveyors at a lower price and pocketed $96,216.57, which they split. Lorefice pleaded guilty to two fraud charges.
Defence barrister Anthony Glynn said the contracted work was completed. “The essence of what was wrong was that this was done without the knowledge of the principal,” Mr Glynn said.
“The real criminality here was that the relationship (between Lorefice and Mr Lyne) wasn’t disclosed to DMH.”
The court was told Lorefice received work he might not have as a result of the arrangement. Mr Glynn said DMH suffered no disadvantage, other than for directors to exercise their right in choosing contractors. He said it was a “less serious example of fraud”.
“In circumstances where my client didn’t understand that what he was doing was fraud,” Mr Glynn said.
Lorefice was jailed for three years wholly suspended and ordered to pay $48,000 restitution by March 21 next year.