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Mr Anthony Keon Director, Compliance Office of Liquor

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Mr Anthony Keon Director, Compliance Office of Liquor Our Ref: L298 Mr Anthony Keon Mr John Ralston Director, Compliance Partner Office of Liquor, Gaming and Racing Pigott Stinson Lawyers Level 6, 323 Castlereagh Street Level 3, 10 Barrack Street HAYMARKET NSW 2000 SYDNEY NSW 2000 Mr Tim Mitchell Ms Susan Doherty Solicitor Director Special Counsel Bay Legal Johnson Winter and Slattery Lawyers Suite 301B Level 25, 20 Bond Street 806-812 Anzac Parade SYDNEY NSW 2000 MAROUBRA JUNCTION NSW 2035 [email protected] [email protected] [email protected] [email protected] Dear Sir/Madam Complaint in relation to Manly-Warringah Rugby League Club Limited under Part 6A of the Registered Clubs Act 1976 INTRODUCTION 1. I refer to a letter of complaint (Complaint) made to the Independent Liquor and Gaming Authority (Authority) on 27 February 2014 by Mr Anthony Keon (Complainant), Director, Compliance and Enforcement Division, Office of Liquor, Gaming and Racing (OLGR) in his capacity as delegate of the Secretary (Secretary) of the (then) NSW Trade and Investment, now Justice NSW. 2. The Complaint concerns the registered club known as the "Manly-Warringah Rugby League Club", liquor licence number LIQC300228452, which is located at 563 Pittwater Road, Brookvale (the Club). 3. The Club has been in operation since 1957 as a social and sporting club assisting in the promotion, conduct and propagation of rugby league football in the Manly-Warringah district. 4. An extract of the Club's liquor licence accompanied the Complaint, from the licensing database now known as OneGov. It discloses that as of 27 August 2012 (being the last date of any significant change to the licence prior to the making of the Complaint) the Club has an unrestricted licence enabling it to potentially sell or supply liquor for consumption on the Premises, 24 hours a day. [The Authority notes that the Club's licence pre-dates the operation of the mandatory 6-hour daily closure period provided by section 11A of the Act.] Level 7, 10 Valentine Avenue, Parramatta NSW 2150 PO Box 8325, Parramatta Westfield NSW 2150 Tel +61 2 9995 0599 Fax +61 2 9842 8676 www.ilga.nsw.gov.au ABN 42 496 653 361 - 2 - 5. As a consequence of recent legislative changes with regard to the sale of packaged liquor in NSW, the Club may sell or supply liquor for consumption off the Premises from 5:00am to 10:00pm on Monday through Saturday and 10:00am to 10:00pm on a Sunday. 6. The licence also indicates that the Club has a gaming machine threshold (the maximum number of machines that may be kept on the Premises) of 200, and that the Club actually holds 200 gaming machine entitlements - that is, it is operating machines to the limit of its threshold. The licence notes that those machines may operate subject to a mandatory gaming machine shutdown period that is fixed between 3:00am and 9:00am on Monday through Friday and between 6:00am and 9:00am on Saturday, Sunday and public holidays. 7. Notwithstanding its potential 24-hour licensed trading hours, the Club's website indicates that the actual hours traded by the Club are from 9:30am to 1:00am on Mondays and Tuesdays; 9:30am to 2:00am on Wednesdays and Thursdays, 9:30am to 4:00am on Fridays and Saturdays and 9:30am to 11:00pm on Sundays. THE COMPLAINT 8. The Complaint is made under part 6A of the Registered Clubs Act 1976 (Act) in relation to the Club. While all complaints under Part 6A are made in relation to the Club itself, it also concerns two former members of the Club's Governing Body, Mr Robert Reilly and Mr Peter Spray (collectively referred to as the Former Officers). 9. The Complaint comprises a 7-page cover letter (Complaint Letter) agitating six grounds of Complaint (Grounds), all of which are statutory grounds provided by section 57F(3) of the Act that may potentially be relied upon in a Part 6A complaint. The Complainant specifies numerous particulars (Particulars) - usually allegations of fact made in support of each Ground. 10. The Complaint Letter is accompanied by a Brief of Evidence comprising approximately 1,300 pages of submissions, evidence, and other material upon which the Complainant relies (Brief of Evidence). 11. The Brief of Evidence material has been prepared by OLGR staff and consists mainly: a) statements of evidence from OLGR Inspectors b) records of interview between OLGR Inspectors and members of the Club's Governing Body c) correspondence between OLGR, the Club and the Respondents d) copies of Club Board meeting minutes, Club credit card statements and reward points histories, QANTAS Frequent Flyer reward points histories e) cheques presented to the Club f) other miscellaneous documents gathered during the course of the OLGR investigation. 12. The Complaint Letter states, by way of background, that Mr Robert Reilly was a member of the Club's Governing Body from 2007 and was the Chairman of the Club from 2008 until his resignation from the Governing Body on 26 June 2012. Mr Reilly resigned his membership of the Club on 20 August 2012. 13. The Complaint letter also states, by way of background, that Mr Peter Spray had been employed at the Club since 1994. [The Authority notes that Mr Spray refers in his submissions to 25 October 1993 as being the date that he commenced employment at the Club. The Authority accepts Mr Spray's date for the purposes of this decision.] - 3 - 14. The Complainant states that Mr Spray held the position of General Manager, later re-titled Chief Executive Officer (CEO) and Club Secretary from 29 July 2004 until his resignation from the Club on 17 January 2013. [The Authority notes that Mr Spray refers in his submissions to 4 February 2013 as the date of his resignation. The Authority accepts Mr Spray's date for the purposes of this decision.] GROUNDS OF COMPLAINT 15. The full text of the six Grounds of the Complaint specified in the Complaint Letter are set out below, along with references to the evidence or other material relied upon by the Complainant in support of each Ground. Ground 1 16. This Ground alleges as follows: Section 57F(3)(a) - The club has failed to meet the requirements of s.10 of the Act. Between June 2009 and March 2012 the Club failed to meet the requirements of section 10(1)(i) of the Act when it made available to Messrs Reilly and Spray benefits and advantages which were not offered equally to every full member of the Club. Particular 1.1 - Benefits and Advantages to Mr Robert Reilly Particular 1.1.1 17. Particular 1.1.1 of the Complaint concerns the alleged payment to Mr Reilly of cash advantages exceeding $400.00 each and states as follows: (a) On 98 separate occasions between June 2009 and March 2012, the Club deposited cash exceeding $400.00, by electronic funds transfer, to the personal account of Mr Reilly (b) On receipt of the funds, Mr Reilly transferred them on the same day to another account - usually "Brycorp Investments Pty Limited" [the Authority notes that this Particular appears to contain a mistaken reference to Brycorp Investigation Services Pty Limited which is the name disclosed on the ASIC Searches provided by the Complainant] but on occasions the funds were also transferred to Brike Investigations (Aust) Pty Limited (c) For each electronic funds transfer, Mr Reilly provided the Club with a cheque for the amount advanced to him, usually drawn by Brycorp Investigation Services Pty Limited, but on occasions by Brike Investigations (Aust) Pty Limited or himself personally. [The Authority notes, on the basis of the ASIC Searches provided by the Complainant, that Mr Robert William Reilly is recorded as the sole director and secretary of Brycorp Investigation Services Pty Limited, a company for which a strike-off action, initiated by ASIC, is currently in progress. The Authority also notes that Mr Reilly is listed as a former director of Brike Investigations (Aust) Pty Limited, a company that was deregistered on 22 January 2006. Mr Reilly's directorship of that company ceased on 10 October 2002.] (d) The Club retained these cheques, usually for up to about three days, but on occasions longer periods, before depositing them into the Club's account (e) The total of the funds advanced by the Club in these 98 transactions was $448,600.00. Each transaction was approved by Mr Spray, the Club Secretary, and recorded in the Club's "Cash Disbursements Journal" (Journal) (f) The Journal was then presented at the following monthly meeting of the Club's Governing Body for retrospective approval. - 4 - 18. In support of Particular 1.1.1, the Complainant relies upon the evidence or material listed in Schedule 1 to the Complaint Letter, comprising a statement of OLGR Inspector Karen McCluskey dated 3 October 2013 and the following annexures to that statement: KM042-KM076 Board meeting minutes for the Club dated between 16 December 2008 and 25 October 2012, including the attachment entitled "Cash Disbursements Journal" KM077-KM176 List of transactions for the Club dated between 23 June 2009 and 1 March 2012 KM278-KM312 Account summary and transaction list for Mr Robert William Reilly dated between 28 September 2009 and 15 February 2012, and Brike Investigations (Aust) Pty Limited dated between 19 April 2010 and 2 March 2012 KM177-KM277 Bundle of cheques dated between June 2009 and March 2012 KM406 Record of interview between OLGR Inspectors and Mr Robert Reilly dated 22 August 2013 (Reilly Interview) at pages 15-17 KM401 Record of interview between OLGR Inspectors and Mr Peter Spray dated 8 August 2013 (Spray Interview) at pages 22-24 KM397 Record of interview between OLGR Inspectors and Mr Peter Bryant dated 10 July 2013 (Bryant Interview) at pages 22-25 KM398 Record of interview between OLGR Inspectors and Mr Brian Smith dated 13 July 2013 (B Smith Interview) at pages 19-23 KM394 Record of interview between OLGR Inspectors and Mr Peter Peters dated 3 July 2013 (Peters Interview) at pages 25-32 KM405 Record of interview between OLGR Inspectors and Mr Max Delmege dated 21 August 2013 (Delmege Interview) at pages 18-21 KM396 Record of interview between OLGR Inspectors and Mr Damian Smith dated 9 July 2013 (D Smith Interview) at pages 23-29 KM399 Record of interview between OLGR Inspectors and Mr David Costello dated 30 July 2013 (Costello Interview) at pages 9-14.
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