Ray Mackereth accused of being an old hand at living off his employees’ entitlements

Two affidavits filed in the Federal Circuit Court claim that both Q News and Klub Kruise have systemically underpaid superannuation to their staff for years, nearly all of whom earned minimum or award wages, while both companies’ sole director Ray Mackereth lived in a mansion at Paddington largely funded by his business interests.

The documents form part of a long running dispute between the former manager of his sex on premises venue that was exclusively for men that have sex with men. Things escalated dramatically in recent weeks in the Federal Circuit Court, with Larcombe filing a raft of witness statements suggesting Mr Mackereth may not be the community do-gooder that he likes to make out and also suggesting he may be a less than effective company director, even a non-compliant one.

David 'Deeje' Hancock who is also Mr Larcombe's partner says Q News was for a  long time underpaying staff up until he left in 2011

David ‘Deeje’ Hancock who is also Mr Larcombe’s partner says Q News was for a long time underpaying staff up until he left in 2011

In what is emerging as an apparent pattern, David ‘Deeje’ Hancock, the former sales manager then general manager of Q News and also the long-time partner of Mr Larcombe says in his statement Ray Mackereth’s former GM dishes up his dirty dealings,  that it was back in 2006 when he dealt with his first staff complaint about unpaid superannuation and that in 2010, the situation had deteriorated so badly that staff insisted that the Australian Tax Office collect this debt.

According to Mr Hancock, Mr Mackereth had allowed Q News to rack up such a debt with employee’s compulsory superannuation, that some employees were still getting paid back well into 2013 despite leaving in 2011.

The delayed payments also prevented employees cashing in on the huge gains post-GFC that superannuation funds enjoyed as the market recovered. Hancock also claims that 60 per cent of the rent paid on the Paddington residence was once being covered by Q News, despite it only occupying a tiny part of Mr Mackereth’s compound, implicating him in potential personal income tax evasion for fringe benefits should this be proven.

Hancock also confesses to “turning a blind eye” with Mr Mackereth’s alleged misleading conduct to advertisers about circulation and distribution points, grossly inflating printing runs to secure advertisers, even at unjustified higher rates.

In his statement, Hancock said that he near the end of his employment changed his silence  and he had many “heated” exchanges with Mr Mackereth over the alleged fraud against Q News advertisers and readers. Hancock also confesses his behaviour has brought him great shame that he didn’t do more to stop it.

Also in 2010, documents seen by raymackereth.com show that the ATO was undertaking an investigation in Klub Kruise for unpaid superannuation for those staff, which the ATO also found that it was also behind, meaning both Mr Mackereth’s companies were spending their staff’s retirement savings.

On the Q News website Ray Mackereth claims he "has a great sense of social justice" but he stands accused of misappropriating employee entitlements for his personal or business gain

On the Q News website Ray Mackereth claims he “has a great sense of social justice” but he stands accused of misappropriating employee entitlements for his personal or business gain

Extraordinarily, within months of getting back to being compliant and no longer behind in compulsory super, Klub Kruise stopped paying it again, forcing  employees to again complain and the ATO launching a second investigation. At the time of liquidation, 11 employees were duped out of their retirement funds.

Raymackereth.com has also sighted official company records of Klub Kruise that show they were behind on superannuation, GST and PAYG tax from 2009 by as much as $30,000. At one stage, Klub Kruise had three motor vehicles under finance using the company as security by have a registered charge with ASIC. This suggests Mr Mackereth at one point had two vehicles for his personal use being a Jaguar and a late model Jeep, in addition to the fully financed company commercial ute, despite neither of them being needed for company purposes, according to Mr Larcombe and ASIC records.

Mr Larcombe and Mr Hancock now manage a similar business, being a sex on premises venue for men that have sex with men, in the same location where Klub Kruise was known as Number 29 Cruise Club.

Coming up next: Did the Landlord really not renew the lease for Klub Kruise without reason as Mr Mackereth claims? READ:

Klub Kruise’s landlord hits back at Ray Mackereth’s “lies” as years of wages underpayments emerge

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Ray Mackereth in Federal Circuit Court for Unpaid Employee Entitlements

Ray Mackereth in Federal Circuit Court for Unpaid Employee Entitlements

Federal Circuit Court documents tell a devastating story about what appears to be very shameful conduct on behalf of our community hero – Ray Mackereth, when he ran his gay sex on premises venue Klub Kruise.

There is so much, we are going to break this down into parts and this is the first of three installments. Read on…

On 23 June 2014, Brenton Larcombe commenced action in the Federal Circuit Court,  where he clams Mr Mackereth spent his long service leave, annual leave and notice on day to day business needs including funding a late model jeep, a lavish lifestyle and business excess, all while his company floundered.

Larcombe tells the Court that Mackereth has had dodgy dealings that go back a long way, even as far as 2009 while Mr Mackereth putts around in a late model jeep and living the good life all the while Larcombe remains out of pocket:

  1. Annual leave, up to $12,471.10;
  2. Long Service Leave, no less than $13,172.32;
  3. Notice on Termination, $6080.00; and
  4. Superannuation $7,235.96.
  5. THIS TOTALS $39,034.38 THAT LARCOMBE ALLEGES MR MACKERETH WAS INVOLVED IN UNLAWFULLY USING, TO HIS DIRECT PERSONAL OR COMMERCIAL BENEFIT RESULTING IN MULTIPLE SERIOUS CONTRAVENTIONS OF THE FAIR WORK ACT IN HIS CAPACITY AS THE SOLE DIRECTOR, COMPANY SECRETARY, PUBLIC OFFICER AND 80% SHAREHOLDER OF KLUB KRUISE.

Larcombe is also seeking pecuniary penalties (fines imposed by the Court) in the “very high range” which could exceed $30,000.

Ray Mackereth fights on in Federal Circuit Court defending claims he ripped of his deputy nearly $40K

Ray Mackereth fights on in Federal Circuit Court defending claims he ripped of his deputy nearly $40K

Larcombe Throws First Salvo

Nearly two years in the making, Brenton Larcombe drops a bomb on Mr Mackereth in the Federal Circuit Court claiming he is involved as an accessory to contraventions of the Fair Work Act.

Read Larcombe’s Application here: Larcombe sues Ray Mackereth in Federal Circuit Court

Mackereth limply “fires” back blaming his landlord, basically saying “I didn’t done it, blame Josef” Ray Mackereth responds to Larcombe Lawsuit blaming Landlord.

But the big man wanted “further and better particulars” and Larcombe wanted his superannuation added, so an amended application was filed Larcombe’s Amended Claim Against Ray Mackereth.

A special hat tip to Deeje Hancock who knew someone that tipped Raymackereth.com off with this explosive story. It includes ASIC documents containing false information signed by Ray Mackereth being given to the liquidator, misleading advertisements in Q News and nearly $190K of unpaid debts, including him gouging straight from the retirement funds of his staff.

RELATED:

Ray Mackereth accused of being an old hand at living off his employees’ entitlements

Klub Kruise’s landlord hits back at Ray Mackereth’s “lies” as years of wages underpayments emerge

Stay up to date at the public search of federal law cases here:

Court: Federal Circuit Court – Federal Law, Brisbane Registry
Number: BRG558/2014
Title: Brenton Larcombe v Raymond Mackereth
Filing Date: 23-Jun-2014

Klub Kruise once Ray Mackereth gutted it

Ray Mackereth admits gutting the internal fit out of 29 McLachlan Street, despite his lease not allowing this until after he paid his debts. As he was in arrears on on his lease because he left without giving a month’s notice, on an extension to his lease and hadn’t paid outgoings as was his obligation so Mr Mackereth had no right to touch the fit out.
Added to this,  had Ray Mackereth left the fit out in tact, his staff would have got some money, which according to affidavits filled could be as much as $25K. but by annihilating the guts of Klub Kruise, Mackereth also annihilated any chance his staff had of getting paid, because the land owners tried to make sure they staff got their money..Josef Senisin the landlord also claims that Mr Mackereth was not entitled to touch the fit out in any event as he owned two months of insurances and did not give the prescribed notice, and that Mr Mackereth knocked back $9,000 for fit out provided it went to unpaid entitlements.Worse, by not giving any notice and according to Mr Senisin, it was on 12 July 2012 so a new month was due, this gave the landlord no time, and he had to charge rent from Mr Mackereth’s personal security deposit, which cold have gone to employee entitlements.

It is alleged that Mr Mackereth acted deliberately and maliciously, basically throwing a killer tantrum in a “if I can’t have it, no one can” approach, and thereby would rather see an empty shell then someone make a fist of the business he so miserably failed.

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Klub Kruise’s landlord hits back at Ray Mackereth’s “lies” as years of wages underpayments emerge

Ray Mackereth accused of being an old hand at living off his employees’ entitlements

Ray Mackereth in Federal Circuit Court for Unpaid Employee Entitlements

Did Ray Mackereth Rip Off Business Network and Suicide Prevention bodies?

Queensland gay businessman Ray Mackereth is facing allegations of improper conduct as documents suggest he was both the referee for a gay and lesbian business network to win a government grant, while his company was the single biggest beneficiary of that grant, taking home $7,150 for advertisements placed in QNews.

Government documents obtained by RayMackereth.com  show that Mr Mackereth, along with two local LNP politicians acted as personal referees for Brisbane’s Gay and Lesbian Business Network. Originally QNews was to share equally the biggest beneficiary status with community run paper Star Observer, however an amended grant document shows that Star’s portion was more than cut in half, leaving Mackereth’s publication the front runner, benefiting the most from this government grant.

Despite his business enjoying advertising from grants, direct government contracts and taxpayer supported not-for-profits, Mr Mackereth has refused to comment on his involvement. It is also in the wake of revelations that Mr Mackereth’s  QNews has allegedly overstated Q News’ publication figures, distribution and  readership figures according to report in The Australian and Star Observer.

Separately because of advertisements run by QNews and contradictory posts on its website, questions have also been asked as to whether promised fundraising in aid of “suicide prevention” was actually diverted to a soccer club and regional Queensland community group.

Ray Mackereth or QNews appear to have started a petition on Change.org arguing “We have actively been involved in suicide prevention for over 10 years” which received a lacklustre response of 110 signatures to get the Queensland Reds to to an It’s Gets Better Campaign.

In 2011 QNews promised to share profits of an event “Carnivale”, where the publication marketed itself as the promoter under the heading of “QNews Presents”. While pre-event promises varied, they appeared to offer that profits from Carnivale would be split 50/50 between Brisbane Pride Festival and “suicide prevention” although no specific organisation was noted as the beneficiary.

Sources close to BPF confirm they received $4,108 as QNews boasted they had donated. However after a recent tip off to raymackereth.com that money was not ever disbursed to any suicide prevention charity or community group, Mr Mackereth was asked how the balance of the profits were allocated to “suicide prevention”.

Mr Mackereth has not answered any questions about how the funds were disbursed. QNews’ own pages appear contradictory about wheren the money went, where one month they say “all other proceeds” went to “youth suicide prevention” and the next month saying the money went to BPF, a soccer club and a regional Queensland group, implying that only the scraps, or perhaps none at all, went to an unnamed youth suicide body.

On 14 June 2011 QNews editor Toby Longhurst wrote a glowing review of his employer’s own event saying QNews financed and organised the one-off Carnivale:

“…which has acted not just as a stand in fair day but also as a fund-raiser to help Brisbane Pride Festival get back on its feet, as well as donating all other proceeds to youth suicide prevention.”

Mackereth himself was quoted in his editor’s article:

“QNews Publisher and Carnivale organiser Ray Mackereth, who worked with a team of enthusiastic volunteers, has long been a passionate advocate for youth suicide prevention and described the day as being of “significant importance”.”

However just one month later on 15 July 2011, a co-authored post by Big Brother graduate (and now Ministerial Advisory Committee member) David Graham and TV personality Peter Everett, suggested the money was handled differently with 100% going to “youth suicide prevention” indicating nothing to BPF.

“Brisbane Carnivale was a once off event organised by Q News and co-ordinated by Ray Mackereth after Brisbane Pride Festival fell into financial difficulties. Despite a substantial loss last year from BPF’s Fair Day, this year’s similar event managed to post a profit  despite harshly cold and inclement weather that minimised numbers. 100% of profit that is set to top $10,000, is being donated to youth suicide prevention and the last amounts will be presented over the coming weeks to community beneficiaries.”

Later in the same article it appears a different version still as to who enjoyed the spoils from this event.

“The atmosphere in Perry Park was extremely vibrant, upbeat and celebratory. The soccer club at Perry Park who host many youth soccer carnivals and were flooded earlier this year also received a $5,000 donation from Brisbane Carnivale for use of their grounds.

A new Roma LGBT group not So Straight are also about to receive a $500.00 donation from Brisbane Carnivale with more donations to be announced soon. This takes the current donations to $9,608.00 to date and still more to be donated by QNews.”

Promises of a presentation to youth suicide support group do not appear to have ever been published and it is unclear if they occurred but if $9,608 of around $10,000 was paid out as reported, then 50/50 did not got to BPF and “suicide prevention” as was promised in pre-event marketing. Carnivale also received government assistance.

In related suggestions of exaggerated claims, QNews marketing tells its prospective customers it has “at least 50,000 readers are online” (and that figure expands to up to 150,000 per issue) and also says “QNews usually ranks in the TOP 500,000 WEBSITES in the WORLD & also in the top 15,000 WEBSITES IN AUSTRALIA” (sic).

An Alexa search, which RayMackereth.com understands to be the reference tool used by QNews online claims suggests a very different picture with a global ranking not even close to the the top one million world websites, limping in at 1,126,116. Similarly the Australian results suggest QNews are only in the top 48,568 most popular website meaning they are potentially tripling their actual performance to attract advertisers.

Mr Mackereth has not responded to how his company verifies this claim.

In a statement on Thursday to community radio Joy949, Mr Mackereth did not specify which allegations he was referring to, but said that things being said about him were “untrue”.

Mr Mackereth in August 2013 told a Brisbane community group committee that there was a “vendetta” against him and that the journalist had “mental issues” and telling others the journalist was “schizo”. He conceded to this community group that he has no intention of ever responding to the questions.

Related:

Ray Mackereth accused of being an old hand at living off his employees’ entitlements

Ray Mackereth in Federal Circuit Court for Unpaid Employee Entitlements

Ray Mackereth an Unreasonable Manager: WorkCover

Insolvent Trading Hangs Over Ray Mackereth with His Sex Club owing $189K

Just over  year after Klub Kruise Pty Limited was placed into voluntary liquidation by sole director Ray Mackreth, the appointed Liquidator Vincents has written to creditors showing that the failed sex club owed his staff (excluding himself) nearly $50,000 and the ATO $73,000.

 

So for Mr Mackereth to be claiming to be a community benefactor this appears to not even offset the money his failed company owed to staff and to the Australian people via the ATO. with total debts of $189,8222.83 . Corporations laws mean that he could be personally sued for this with him risking losing both QNews and White Wolf – his dance party business.

 

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ASIC documents also show that Mackereth planned to hurriedly close the Klub Kruise down by taking an early resolution which needed 95% of the shareholders to agree. That required Mackereth to communicate with an employee that had taken workplace bullying actions against him. Brenton Larcombe his business partner tells RayMackereth.com that this was becausee he was worried that the ATO was going to chase Mackereth personally for the company debt to them. which they could not do if it liquidated,  first and there was not money in the bank to pay employee entitlements.

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