QLD Should We Report Past Treasurer to Police for Fraud?

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Jill Press

Member
21 January 2017
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We are a volunteer community group and have discovered our past treasurer has used funds from one of our bank accounts to pay bills for his business. This has been via 7 internet transfers totalling over $10,500. The past treasurer has admitted doing it. He has been declared bankrupt but indicated he would like to work out a payment plan with us.

At this stage, we have not reported it to the Police as I am worried he will get arrested and charged and they have two small children. Can it be reported to the Police without him being charged and if he was charged and it went to court as he has been declared bankrupt, would our Club have to pay court costs?
 

Rod

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27 May 2014
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What is the point of reporting it to police and not having him charged?

You do not pay court costs unless you take him to court

Did the offending take place after he was declared a bankrupt?
 

Tim W

Lawyer
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28 April 2014
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We are a volunteer community group and have discovered our past treasurer has used funds from one of our bank accounts to pay bills for his business. This has been via 7 internet transfers totalling over $10,500.
Regrettable, but better that you know.
The past treasurer has admitted doing it.
Admitted it to whom?
Verbally, or in correspondence? Are there witnesses?
He has been declared bankrupt but indicated he would like to work out a payment plan with us.
You will need to speak with his Trustee In Bankruptcy.
In a bankruptcy there is a priority order of who gets paid.
He has no real choices about how that operates.
As (at best) an unsecured creditor, there are (probably) other people/ entities who have a right to get to get paid before you do.
And no, he doesn't get to choose.

In other words, if he has the capacity to pay you back, even in instalments, then there are probably other people ahead of you with more right than you to the money that he would supposedly use to pay you.
At this stage, we have not reported it to the Police as I am worried he will get arrested and charged and they have two small children.
Glib as it sounds, that's not your problem.
Further, it would be inconsistent with your group's leaders' duties
for that to be a factor in their decision about what to do.
Can it be reported to the Police without him being charged and if he was charged and it went to court as he has been declared bankrupt, would our Club have to pay court costs?
Probably not.
The police will decide for themselves whether or not to prosecute. You don't really get to influence that.
In any event, you have a duty to report a suspected offence - and it can be a separate offence to conceal it.
And a separate offence again to obstruct the police once they begin an investigation.
Further, if you are a charity, or an incorporated association then you have obligations to those regulators as well.

And no, there are no circumstances where a victim of crime would have to pay the costs of a prosecution.
If however you take civil action against him ("sue him"), and you are not successful, then you could well face a costs order.
But that's pointless, and if he is bankrupt, pretty much impossible anyway.
In any event, your lawyer would not let you start a civil proceeding unless it was possible at law, and had reasonable prospects of success.

I strongly recommend getting formal legal advice at the earliest opportunity.
 

Jill Press

Member
21 January 2017
3
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1
Hi Tim - thank you very much for posting your response. He admitted the theft to me after I questioned him and I have that in writing. But I will take your suggestion and contact a lawyer.