Things That Make You Go Hmmm

Posted: July 2, 2012 in HSU Saga

Today I have a couple of updates on the HSU investigation that I have been reporting on.

Not long ago, I reported on a payment that was made to Wai Quen Chan by HSU Branch number 3, under the control of Kathy Jackson.

The payment to Wai Quen Chan was for $22,000, which is, I’m sure you will agree, quite a substantial figure.

The payment was attributed to legal services by Kathy Jackson’s union branch. I have put a link to the documentation below.

Wai Quen receipt

It needs to be remembered that to misrepresent a payment of this type is actually a criminal offense, as it is an act of fraud.

It is unclear what legal services Jackson thought the union members may need in Hong Kong, where Wai Quen Chan is based. Never the less, $22,000 was reported to have been transferred to Wai Quen Chan, despite there being no invoice to back up the payment.

After I published the documents related to this payment, Andrew Landeryou from Vex News contacted Wai Quen Chan about the payment.

Andrew thought he would try to obtain the answer, that the Acting General Secretary of HSU East, Peter Mylan had been unable to obtain, despite his letter to her.

Wai Quen Chan, was to her credit most helpful indeed. Quen stated that she had not performed any legal services for the HSU since she left the union. She had not performed legal services for the HSU since leaving Australia, and she had never raised an invoice for legal services. She later confirmed these things in writing.

I guess this raises the question of where the money went, as it was fraudulently claimed as going to Wai Quen it would seem.

However, I will get to that…

Some of you may remember there was talk of a car that Kathy’s ex husband, Jeff Jackson, was rumored to have come into possession of, care of the union. That car was a white Mercedes Benz, supposedly imported from Asia at around the same time this payment to Wai Quen was supposed to have been made.

A Mercedes Benz C6956B

Well, speculation and rumour, don’t cut it in the real world, so I am pleased to tell you that a bank trace has been performed on the payment to see where the members money ended up.

I am now able to report the results of this trace, as the police have been fully briefed and are in possession of all the evidence.

It turns out that the $22,000 never was sent to Wai Quen, she was telling the truth. This is also confirmation, that the person who authorised the payment from the union did so fraudulently. The branch was under the control of Kathy Jackson at the time.

The money in fact went into an Australian bank account. The owner of this account is a man by the name of Daniel Tsz Leung Chan.

Daniel, it turns out is Wai Quens brother, that seems an amazing coincidence to me, but it gets better.

Although I have as yet been unable to track down Daniel to ask him if he’d ever sold the white Mercedes to Jeff or Kathy, there is something else that I found interesting. This may be a coincidence, but it grabbed my attention.

There is a company registered to a Daniel Tsz Leung Chan in Australia, named First Eastern Pty Ltd. Someone with the exact same name is a coincidence enough, but First Eastern’s trading name is Hawthorn Motors.

Hmmm.

Unfortunately it seems Hawthorn Motors has disappeared, and I suspect like his sister, Daniel may have moved to Hong Kong. I will keep trying to find him though.

Anyway, the two things we know for certain are, the money didn’t go to Wai Quen, and it wasn’t for legal services in Hong Kong, as the documentation states.

Another thing that I thought I should mention is that Kathy has explained the $58,000 payment to her ex husband Jeff, from the HSU number 3 cheque account in April 2010. It seems that Jeff was still owed some entitlements from when he worked there.

April 2010 Statement

I guess that is fair enough…

But, hang on a sec. How many months since Jeff had worked there? 12 months actually

Oh, and wasn’t Jeff working at the number 1 branch?

Which union branch again Jeff?

It makes no sense whatsoever to me that Jeff would be paid any entitlements from the number 3 branch. That would be like working for Coles, and then getting your entitlements paid to you, a year after you finished from Target.

Finally, many readers have asked about the Hyundai that showed up on the bank statements. Although Jeff Jackson was driving around in a nice Hyundai SUV care of HSU members money, until the administrator was appointed, our investigation is yet to uncover a Hyundai that costs $77,000. Then again, we still haven’t found out where the extra approximately $5,000 on the cash cheque for Kathy’s Volvo ended up either.

Volvo Receipt and EFT Transfer

Volvo Cash Cheque

Hmmm.

Comments
  1. Eve says:

    HSU saga just gets worse and worser (Dumb and Dumber). What amazes me is how unions can get away with this sort of fraud. Appears to be little if any scrutiny or reporting requirements. The payments for IT consulting paid into a company owned by union official also telling. Who oversights unions? If FWA God help us.

  2. Simon says:

    I’ve been following your posts for a while now. This whole thing really smells. Keep up the good work!

  3. Rob Alan says:

    As others have noted, I ask myself.

    Just how widespread is this administration industry wrought? Just how many administration jobs in Australia are on paper obs only, set up to receive a tidy stream of extra quids?

  4. Tom O'Brien says:

    Hmmm. Indeed.

    Why on earth are the MSM ignoring this issue. If a lone scout such as yourself can do it, why not our so-called news elite.

    Surely the police will have to start taking this seriously, get a proper and comprehensive investigation underway.

    I must say I have never been a fan of the union movement, always impressed me as a unsavory bunch of self seekers (maybe why so many get on the political gravy chain).

    Talking of my feelings towards the union bunch, the other side of the coin is my local member the Hon Tony Abbott, yes, oh dear. Anyone who thinks unionists are a scary bunch: I present my local member, now, that’s what I really call scary!

    Keep up the excellent work…

    • thereal2bob says:

      It takes things just like this to open up a fellows eyes to the MSM. Once open you will never read anything the same ever again. What they say and what they don’t are true revelations about who drives them and about what they actually want. Unfortunately too many people are simply switched off. They sort of know something is up and that someone must be deceiving them and then they bring anger to the debate. Like the climate change ‘debate’. Deep down most people know that increasing the amount of a heat trapping gas in the atmosphere has to increase the amount of heat trapped by that atmosphere, its a homer simpson sort of ‘doh’ but when their chosen political party tells them that it’s a con they don’t wan’t to believe it (that they are being lied to) and hence the anger. The more people wake up the better and issues like this can only help more people switch on the light.

  5. Marilyn says:

    Eve, why pick on the unions. Look at Barclays bank and our very own AWB and then get back to us.

    • Eve says:

      Because this issue is about unions (some unions). Unions like banks (and AWB) are organisations and any organisation can be corrupted especially without proper audit arrangements or oversight. No need to get back to you, that is a ridiculous knee jerk defensive response. I am a union member and as such would like union officials to be accountable to their members who, for the most part, earn some of the lowest salaries as in the case with HSU. What is looking at Barclay’s bank or AWB got to do with this issue. They are pertinent and important issues in their own right. When wixxy writes about them I will comment similarly.

      • Eve says:

        Apologies did not mean to use the term ridiculous. Said in a fit of frustration. Just can’t stand it when ethical issues are obfuscated by personal allegiances to any particular sector. All sectors should be accountable in a democracy.

  6. savetherange says:

    Hmmm indeed. I’m hooked on the intrigue of it all. Does the Union still own the white merc and a very expensive Hyundai? I hope you are getting enough sleep PW?

  7. Frances Jones says:

    This must be making HSU members feel sick.

  8. Lachlan Ridge says:

    I bet he’s sleeping better than Action Jackson and Kathy

  9. dafid1 says:

    More remarkable investigating Peter. it is a long time since I have seen anything like the work you have put into uncovering what is now becoming a scandal of gigantic proportions. This country will be in your debt when the truth is completely revealed, the guilty prosecuted AND the innocent exonerated of disgusting evil charges

  10. Lachlan Ridge says:

    Wait til they start on the CEPU (the posties union), where NSW Secretary Jim
    Metcher employs his son Nathan as an organiser. Not that I’m suggesting that there’s nepotism, cronyism and a lack of oversight in that union now. Heaven forfear such a thing! Not from the outfit that negotiated a one percent per annum payrise for people on $21 an hour. Who could think such a thing?

    Unions. It’s like watching two bald men fight over a comb.

  11. nevso says:

    The opposite to a “dumby spit” is a “I told you so…”
    Peter, when the dust settles, you will be entitled to crow.
    Like Dafid1, I find it disturbing that the MSM is not following the trail through Jacksonville, although its more of a SNAFU than conspiracy. The junior wannabees, working in Journalism, lack the gravitas and perseverance of traditional reporters.

    • thereal2bob says:

      I doubt that it is a SNAFU. If it was why then the silence on this issue, why aren’t they still baying for Thompsons blood? Same with Slipper. It would be a strange coincidence indeed if not one single churnalist noticed this and in the end that’s just too hard to believe.

    • Maggie says:

      The reason why the MSM don’t want to run with this story is that the libs have leant so heavily on Craig Thomson to run the labour party out of town. They are all hoping that the story will be kept under cover until there is an election and then it won’t matter as the MSM will have their man on the throne and Rupert, Gina, kerry and James will have free reign to do whatever they like.
      How funny it was how they dropped it like a hot potato when they found that there was a terrible stench coming from the HSU and FWA!!!

  12. dee says:

    You are indeed the best (and probably the only) investigative journalist in Australia!

  13. I love each and every one of your posts regarding Kathy Jackson and the HSU. Keep up the good work Wixxy.

  14. ann odyne says:

    I do not understand why all paying members have not filled the Trades Hall with a protest meeting, and ditto as above: ‘I love each and every one of your posts regarding Kathy Jackson and the HSU. Keep up the good work Wixxy’

  15. Lachlan Ridge says:

    All the long suffering union members in Australia who have had to put up with two generations of factional hackery can join this chant:

    WHADDA WE WANT?

    A WALKLEY FOR WIXXY!!

    WHEN DO WE WANT IT?

    NOW!!

  16. Sue says:

    Hmmmmmmmm!

    FWAaaaaaaaaaaaaa?

    Wixxy
    how about emailing a copy to the FWA boss, I love a reply from him

  17. Bella says:

    What’s the latest on Michael Lawler’s long leave?
    Wonder if he caught up with any of his Liberal mates this past weekend. They were all in Melbourne for that big Lib shindig. Anyone see Lawler and Kathy Jackson having lattes with the rAbbott, the painful Pyne or perhaps Peter Reith?.

  18. chantal says:

    Brilliant work Peter. Once you thread all these stories together , all individually point to some very suspicious accounting, governance and compliance issues, a strong picture emerges of lack of accountability .Kathy is apparently on the “defensive” because someone has finally bought her to account via primary evidence , which is very hard to dispute , and all it required was a measure of investigation , not rocket science. To the naked eye , there is prima facie case of fraudulent invoicing.

    Her slanderous affidavits and failed attempts to wreck the court proceedings , are just another attempt to delay the inevitable .To quote Kathy Jackson herself , “the antiseptic of public scrutiny” is always the best remedy.Keep up the great work.

  19. The bull says:

    Restitution to hsu members of ripped off funds should be a priority of the administrator. No entitlements should be paid to sacked executives until all investigations are completed. Then if necessary appropriate deductions can be made.

  20. Sue says:

    Wixxy
    how about this for hmmmmmm moment

    Ms O’Neill said the FWA first became aware of the matter when anonymous information was left at a FWA counter.
    http://bigpondnews.com/articles/National/2012/07/03/Dont_tell_police_about_HSU_FWA_767804.html

  21. Marilyn says:

    An anonymous tip? Good grief.

    And for the stupid woman to claim the AEC got things wrong when we know Nassios got everything else wrong shows she is delusional.

  22. Ann ODyne says:

    July 26 ‘HSU Nat Sec Kathy Jackson has dropped her appeal to the Federal Court over the appointment of an administrator to run the union’s troubled East branch.

    The respondent to Ms Jackson’s actions, HSU acting national president Chris Brown, told The Australian he had been informed yesterday of her decision, and welcomed it as a means of ending a legal challenge which was further draining members’ funds after a bitter factional war.

    The move came only a day after Ms Jackson was granted an expedited hearing in the Federal Court in Sydney to challenge the decision last month by Justice Geoffrey Flick to appoint former judge Michael Moore as administrator, sack the elected leadership, divide the union into separate Victorian and NSW/ACT branches, and move to fresh elections.

    At that hearing on Tuesday, Mr Brown’s lawyers informed the court that the national union would be seeking costs from Ms Jackson, who was paying her own legal fees after lawyers acting for her pro bono moved to other matters’

    ‘other matters’ is so funny when uttered by crims cops or courts

  23. ann odyne says:

    Kate McClymont, SMH, 1st August re HSU Nat Prez paying his own wife $400,000 p.a. for removing staples from Union Archival material. She said it was filthy work and worth more, but I would do it for half that pay, and smile.
    http://www.smh.com.au/opinion/political-news/the-partys-over-hsus-mr-millions-quits-and-cancels-drinks-20120801-23etv.html

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