Lacey hearing begins
THE first of three key prosecution witnesses has faced cross-examination in the fraud charge against former Palm Island mayor Alf Lacey.
The committal hearing and cross-examination of witnesses is the latest progression of Mr Lacey’s matter, after he was charged with fraud exceeding $100,000 in 2020.
Mr Lacey also faces a charge of failing to maintain his register of interests. His wife, Melissa Lacey, also faces a charge of fraud.
Detective Sergeant Andrew Francis, formally with the Crime and Corruption Commission, faced a lengthy five-hour cross-examination from defence barrister Craig Eberhardt.
Prosecutors allege Mr Lacey and Ms Lacey defrauded former Ridgemont Executive Motel owner Yang Zhi Chen between February and October 2019, while Mr Lacey was mayor.
Extensive text correspondence between Ms Lacey and Mr Chen was read before the court, with Mr Eberhardt arguing that Mr Lacey had been unaware his wife had been “borrowing money” from Mr Chen.
Mr Eberhardt said at the time of the alleged defrauding that Mr Chen had been under investigation for running prostitutes at the motel in North Ward.
Mr Francis told Mr Eberhardt he believed Mr Chen had been a “naive and vulnerable” witness, in relation to investigations of his involvement with the Laceys.
The court heard that Ms Lacey had told Mr Chen that Palm Island Aboriginal Shire Council may be interested in buying the hotel from him – which would allow him to move to Melbourne and be with family.
Mr Eberhardt said that was when she allegedly began asking Mr Chen for loans to pay for her son’s legal fees.
Ms Lacey allegedly said she was entitled to $600,000 after the sale of the Palm Island Post office and would pay Mr Chen back – but this was not the case, according to Mr Eberhardt.
Mr Eberhardt said that for several months during the alleged offending period, Ms Lacey had stayed at Mr Chen’s hotel with her children and her mother, but maintained there was no proof her husband had stayed with her.
“You (Mr Francis) know when she ( Ms Lacey) spoke with Chen that he was shocked he’d lent so much money to her (Ms Lacey) and wanted him to stop transferring money to her immediately,” Mr Eberhardt said.
Mr Francis said Mr Lacey’s location data showed he was in Townsville during that time and the evidence pointed to “collusion” between Mr Lacey and his wife.
He said he had held concerns during Mr Chen’s interview that he had lent the money to Ms Lacey because of Mr Lacey’s position as mayor, and felt Mr Chen was trying to “minimise the offending behaviour of Melissa and Alf”. Further witnesses are expected to be called on Tuesday.