Ray Mackereth files for bankruptcy

Ray Mackereth appears to have lost the plot

Ray Mackereth and sole shareholder of Q News filed for bankruptcy on 17 September 2015.

It is all over. The for sale sign will be put up on Ray Mackereth’s Q News shares.

The failed sex king can no longer remain a director of Q News Pty Limited and his shares sold. The mansion lease is now an asset for the trustee to dispense of as Ray Mackereth files for bankruptcy.

Mackereth will have to step down from the board of the public company Gay and Lesbian Travel Association (GALTA) if he hasn’t already.

The failed sex-club king who claims to be a champion of 120 charities recently successfully won a crowd-sourcing campaign for $20,000, claiming “QNews saved! Thank you people!”

As the sole director and shareholder of Q News, Mackereth can now add failed publisher and bankrupt to his name as the trustee can now sell his controlling interest in the fortnightly gay-male targeted pamphlet.

Between Klub Kruise and his own personal dealings, Mackereth amassed debts of over $270,000 that he did not pay, including to small businesses, employees, contractors banks and the Commonwealth and soon Q New’s liabilities will become clear.

Mackereth is at the unedifying end of years of corporate malfeasonance and being admonished by a Federal Judge in Larcombe v Mackereth [2015] FCCA 2646 (1) and now the big man, the Controller is now in the hands of the Trustee Ray Mackereth’s Bankruptcy Petition.

Related:

 “OUTRAGEOUS” RAY MACKERETH THREATENED WITH CONTEMPT AND FINED

 

IRONY WARNING: PUBLISHER RAY MACKERETH COMPLAINS ABOUT MEDIA COVERAGE OF HIM

“Outrageous” Ray Mackereth threatened with contempt and fined

Ray Mackereth charges photographer after court loss

Mr Mackereth charges photographer outside the Federal Circuit Court after a savage judgement about his “outrageous” behaviour.

****UPDATED****

HERE IS THE DELICIOUS JUDGEMENT IN ALL ITS GLORY.

Larcombe v Mackereth [2015] FCCA 2646 (1)

 

In a savage judgement from the bench, Federal Circuit Court Judge Michael Jarrett admonished the failed sex-boss Ray Mackereth, who copped it more than the trashiest tweaked out random at his former sex-den.

In two blows on the one day, (a fair result for any guest at his old sex-space),  the self-proclaimed community champion Mr Mackereth was threatened with contempt over a bizarre gesturing to his mini-me Toby Longhurst while being cross-examined.

The second blow came when Judge Jarrett repeatedly referred to Mackereth’s behaviour as being “outrageous”, and finding he deliberately acted to contravene the Fair Work Act.

In rejecting his credibility on the stand, Judge Jarrett said Mr Mackereth “made up” evidence and when busted, that he had “no contrition”.

It is understood Paddington is fresh out of aloe vera after Judge Michael Jarrett's sick burn on Ray Mackereth's "outrageous" conduct

It is understood Paddington is fresh out of aloe vera after Judge Michael Jarrett’s sick burn on Ray Mackereth’s “outrageous” conduct

Judge Jarrett was scathing of Mr Mackereth’s corporate behaviour, in finding he was an accessory to serious contraventions of the Fair Work Act, ruling his conduct was “the antithesis” of fair work laws.

Judge Jarrett ordered Mr Mackereth to pay Mr Larcombe over $12,000 in compensation, and ordered over $2000 in fines be paid directly to Larcombe and not to the Commonwealth.

Then out the front of the court house, Mr Mackereth, in his second bizarre act for the day, growling in a guttural scream, he then charged into Brisbane workplace litigator Miles Heffernan from Employment Advisors, who had been working closely with Mr Larcombe during the trial process.

Mr Heffernan said “We support our clients to get results. We are patient – especially with crooks that misappropriate their staff’s entitlements to pay their bills and fund extravagance.

Wow, how does Ray Mackereth afford the lifestyle

While not paying staff, Ray Mackereth still pays to live in a 4 storey mansion with rooftop playground. While gaudy, it is all his. Source: Google Maps

“Mackereth threw both a solicitor and counsel at this problem and it was all for nothing – justice prevailed. While we can help, the real hero here is Brenton Larcombe who eyeballed the bloke who lived off his retirement and holiday funds, while his barrister Peter Kronberg made objection after objection and fought to keep evidence out that showed his client for the louse that he is.

“But Larcombe still won and Mackereth chucked a tanty out the front of the court house. The shame of it all.

“If you have worked for someone like Ray Mackereth, call the team on 1300 853 837 to help you get cost effective access to justice” Heffernan added.

Ray Mackereth's Facebook post from 16 October 2014 that has been dismissed by those in the know at Larcombe's camp as 'delusional'

Ray Mackereth’s Facebook post from 16 October 2014 that has been dismissed by those in the know at Larcombe’s camp as ‘delusional’

Larcombe is back in court in December this year for the final stage of litigation against Mackereth, where this time he is being pursued for unpaid long service leave and superannuation.

On 16 October 2014 Mr Mackereth foresaw this week’s trial in very different circumstances, and goading the self-represented Brenton Larcombe, after a set-back on procedural matters, writing “It could not have been a clearer victory” and appearing to imply that witnesses had something to fear from “being subject to cross examination”.

As it turns it was Mackereth himself who had something to fear, as his nearly four hours in the witness box, was marked by inconsistencies, including Judge Jarrett rejecting some of his evidence as “made up”.

Fair Work Claims

Getting screwed at work? Don’t take it lying down.

Judge Jarrett also rejected Mackereth’s sometimes graphic explanations of his claimed ailing health, finding he set on a course of conduct to “deliberately” deprive Mr Larcombe of his basic entitlements and scolding the fallen sex-boss, calling his behaviour “outrageous” because he “paid ever other other employee” other than Larcombe.

Brenton Larcombe is successfulled sued his former boss Ray Mackereth for unpaid employee entitlements.

Brenton Larcombe successfully sued his former boss Ray Mackereth for unpaid employee entitlements.

In a tragic defence, Mr Mackereth’s counsel Peter Krongberg tried to argue his client was the victim because Mr Larcombe registered Number 29 Pty Limited a month after he understood Mr Mackereth resolved to wind Klub Kruise up. Judge Jarrett knocked that down calling it a “red herring”.

Peter Kronberg was counsel for Ray Mackereth on a direct-access brief and it did not go well

“Dam” good barrister Peter Kronberg lost to self-represented litigant Brenton Larcombe

Kronberg and Mackereth have some history, where back in 2013, Q News published a story claiming “Peter is one of the best in his game with a dam (sic) good reputation for winning cases”.

In this case, Mr Kronberg lost against the self-represented Larcombe, which may not help the “dam” good reputation. Conversely Larcombe must be delighted that he won against “one of the best in (the) game”.

Mackereth’s October 2014 Facebook post also claimed “now I can get on with my life and focus on things that matter, like continuing to work with 120+ community groups…”, but with another trial in December 2015, that appears unlikely.

Mr Mackereth still remains living in a mansion at Paddington, while claiming to be a philanthropist. Now a judge has called him on that narrative.

Mackereth has 28 days to appeal or pay the judgement including the fines, before having default judgement entered and possible bankruptcy.

 

Related:

RAY MACKERETH’S BOOKKEEPER TELLS OF HIS CROOKED WAYS

IRONY WARNING: PUBLISHER RAY MACKERETH COMPLAINS ABOUT MEDIA COVERAGE OF HIM

Ray Mackereth serves up lashings of Christmas irony

With the presses running at a fever pitch this fortnight at Q News pumping out their almost tome-like latest issue of 32 pages, publisher Ray Mackereth could almost be forgiven for not realising the immense irony of an article as it went to print.

Almost.

Demonstrating a remarkable lack of consideration of how it may be received by many of its readers, Mackereth published a review of the movie Horrible Bosses 2.

The movie which is currently screening in cinemas follows the comedic misadventures of a group of friends who have suffered various stresses and personal setbacks due to outrageous and unacceptable workplace behavior from their employers.

It was not all that long ago that Mackereth himself accepted to WorkCover Queensland that his management style caused to break his staff member’s spirit which including heavy handed management.

The colourful Brisbane publishing identity has also appointed counsel to defend a criminal case against him which is currently before the Industrial Magistrate for unpaid wages which is being heard on 30 January 2015. Mr Mackereth faces unpaid wages claims of over $40,000 and fines in excess of $60,000 between this case and one under the Fair Work laws federally.

Sources close to Brenton Larcombe, who has commenced the criminal case tell us that his sense of irony is as sharp as ever, and that this unfortunate coincidence has given him a reason for a giggle in what has otherwise been a stressful period.

 

horriblebosses2

 

Miles Heffernan from workplace litigation firm Employment Advisors who is acting for Mr Larcombe in the criminal offences matter brought under special laws in the Queensland Industrial Relations Act, said that the irony was “delicious” adding “just as well it is Christmas as this gift is so exquisitely timed.

Photo credit: Q News Online

Related

RAY MACKERETH NOW FACES CRIMINAL OFFENCE FOR NON-PAYMENT OF WAGES

RAY MACKERETH’S BOOKKEEPER TELLS OF HIS CROOKED WAYS

Ray Mackereth’s bookkeeper tells of his crooked ways

252940_10150214890066943_6629152_nTwo former bookkeepers have alleged that gay business identity Ray Mackereth refused to pay their invoices for work performed at Q News and Klub Kruise, according to sworn statements filed in the Federal Circuit Court.

The gay publisher and former gay-sex club boss is being pursued for unpaid entitlements and superannuation of nearly $40,000. The bookkeepers say they are owed collectively just under $5,000 for work performed but never paid with one adding that once she was of no use, Mr Mackereth just ignored her.

Around the same time she was begging to be paid because she was struggling to make ends meet, Mr Mackereth was boasting online about giving money to a gay rugby side.

The bookkeeper also said Mr Mackereth’s was a workplace “bully” and and that his claims of being a stand up bloke in the community are “outrageous”, adding:

“I think it is outrageous that (Mr Mackereth) was claiming being a community supporter when he has owed his staff, suppliers and the ATO so much for so long. Rather the unpaid suppliers, employees and ATO should receive recognition as he has deprived us to laud himself in the community.

In an ever-deepening crisis for the self-styled champion of charitable causes, the bookkeeper that was with him as Klub Kruise collapsed also claims that the sex club was carrying costs for Q News, that Mr Mackereth owns 100 per cent of. Yet Klub Kruise closed owing nearly $200,000 to creditors.

These costs are said to include administration, motor vehicle expenses and Mr Mackereth’s salary, burdening the now failed company with around  $100,000 per annum of unnecessary expenses according to the bookkeeper-turned-whistleblower, that if proven could leave him exposed to criminal proceedings or being struck off as a director by ASIC.

Another affidavit claims that Mr Mackereth, while admitting workplace bullying allegations, misled WorkCover Queensland by saying he was “let down” by the bookkeeper for not paying the superannuation, despite him never giving his accounts people access to the bank accounts to perform transactions. Both bookkeepers claim payments for superannuation were usually handled directly by Mr Mackereth and never by them.

As Mr Mackereth filed an amended defence of Mr Larcombe’s claim one week late, (Brenton Larcombe Response to amended claim 21-08-2014) where he continues to deny being “involved” in serious contraventions of the Fair Work Act. However these denials are become increasingly inconsistent, and it now appears he now may be pinning his hopes on a period in late 2011 to March 2012, where he suggests he was out of action for poor health for nearly four months. Even that looks in trouble as  both Mr Larcombe and his bookkeeper at the time suggest this claim is nonsense, with both saying he was off work for less than two weeks and otherwise accessible.

Brenton Larcombe is also alleging that after he took just two weeks off work in late May 2012 after nearly ten years of loyal service to Mr Mackereth, he was sacked, despite his illness being work-related. Mr Mackereth also seized the company motor vehicle from Mr Larcombe, which has since been sold.

Despite Mr Mackereth’s amended defence in the Federal Circuit Court that he did not sack Mr Larcombe for his health, evidence tendered suggests otherwise, where it is alleged on 6 July 2012 he wrote the following to WorkCover Queensland:

The business has been financially stressed.  Three weeks ago I terminated Brenton’s employment based on legal advice. I accept that this advice was incorrect and retracted this two days later. However I believe that this has further harmed the relationship and as this was done when he was on sick leave for a work related condition.

So while I dispute some of the reasons articulated by Brenton Larcombe in his claim, I accept that I have been at times unreasonable as a manager and for this I have regret.

Ray Mackereth around 15 years ago but all the smiles and pint sized singers don't distract those he owes from chasing him

Ray Mackereth around 15 years ago, but still uses this as his profile pic, despite life’s lines showing some serious weathering. Despite the Dorian Gray-esque sadness of it all,  the smiles and pint sized singers with 90’s hair don’t distract those he owes from chasing him. His former bookkeeper has savaged him as being dodgy and a bully in Federal Circuit Court documents.

Mr Mackereth admits Mr Larcombe is owed a substantial amount of money, including long service leave, but is still refusing to pay. He also painted himself as caring to WorkCover Queensland in 2012 where he wrote “I stressed that I would do everything possible to try and ensure that he received his wages but with the added stress of having to pay an extra person to replace him, in all seriousness it looked like the business could fold.”

Mr Mackereth’s claims to WorkCover stand in stark contrast to what he has provided to the Federal Circuit Court, where in that version of events he has sheeted home total blame of his company’s failure on the landlord of Number 29 McLachlan Street for not renewing the lease, despite his business not have the liquidity to meet the business debts when due, according to documents provided by the liquidator.

Mr Larcombe confirmed to RayMackereth.com that he had notified the liquidators of Klub Kruise and ASIC of these explosive allegations in recent days.

The case is next listed for a directions hearing on 24 September in Brisbane. Court records show that Mr Larcombe has filed nearly 1000 pages of sworn evidence from seven different witnesses, while Mr Mackereth is yet to provide anything under oath.

Mr Larcombe is seeking to have part of his case awarded without a full trial and also to freeze some of Mr Mackereth’s assets until the matter is fully dealt with by the court.

Ray Mackereth in Federal Circuit Court for Unpaid Employee Entitlements

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

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