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.

go to link 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 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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