Lacey fraud case comes to standstill
THE decision in former Palm Island mayor Alf Lacey’s fraud hearing will be delayed by more than a month, with his lawyers requesting an adjournment to form their submissions and transcribe evidence.
The request comes on the second day of Lacey’s committal hearing.
Lacey was charged in 2020 with fraud exceeding $100,000, and obligation of councillor to correct register of interests – in the alleged defrauding of former
Ridgemont Executive Motel owner, Yang Zhi Chen in 2019.
His wife, Melissa Lacey, is also facing a charge of fraud exceeding $100,000.
The prosecution allege Lacey acted in consort with his wife to defraud Chen by giving him hope of selling the hotel to the Palm Island Aboriginal Shire Council, and the Palm Island Community Company (PICC).
Defence barrister Joshua Jones said what followed was allegedly a series of transactions between Ms Lacey and Chen, including money for a Jeep and $5000
for a “whipper snipper”.
He argued Lacey was unaware of the extent his wife was borrowing money from Chen.
The second day of the hearing saw three witnesses cross-examined by defence barristers Craig Eberhardt and Mr Jones.
The first witness, CEO of Palm Island Community Company Rachel Atkinson, said she told both Chen and Ms Lacey the PICC would not be interested in buying the Ridgemont Motel.
Mr Jones said after the phone call, Chen became suspicious of Ms Lacey’s
promise to help him sell his motel.
During his cross-examination, Chen backflipped from original responses given to Detective Sergeant Andrew Francis.
He told Mr Jones Lacey had been shocked to find out how much money his wife had allegedly borrowed during a phone call in September 2019.
But Chen later added Ms Lacey had allegedly asked him to buy a Jeep for her husband to drive on Palm Island.
Mr Jones said Chen had never been paid back, and that it was later found Ms
Lacey had allegedly gambled the money away, to which Chen agreed.
Chen later told Prosecutor Scott Collins that mayors were “powerful” in China and “that is why be believed” he would be paid back.
When asked why Chen helped Ms Lacey, he said it was because she was Lacey’s wife.
The third witness, Detective Sergeant Andrew Francis maintained the integrity of his interview tactics after they were questioned by Mr Eberhardt.
A decision will be handed down on November 23.