Almost $1 million of NSW government money meant for Sydney WorldPride was spent on gold bullion after it fraudulently ended up in the wrong bank account.
Sydney brothel owners and cousins Simon Menzies and Mansus Knight were charged over their roles in the scam, which resulted in government agency Destination NSW losing $942,700 that was earmarked for WorldPride celebrations.
The news was first reported by The Daily Telegraph newspaper.
The money was deposited in Knight’s bank account in July 2021 as the government began to pay vendors ahead of the event.
The money was for the company Sydney WorldPride Limited. However, a person purporting to be an employee of the company contacted Destination NSW and was able to change the banking details.
Upon receiving the money, Knight transferred the cash to Menzies, the operator of a Kings Cross brothel.
Menzies then used the cash to purchase gold bullion across 13 transactions.
When the scam was uncovered, the cousins told police they won the money through gambling.
The pair told police it was Menzies' idea to use the money to buy gold because it was a “good investment”, the Telegraph reported.
There was no evidence that the duo were involved in the manipulation of the bank account details. They were instead charged with dealing with the proceeds of crime.
Knight pleaded guilty to three offences and avoided jail time but Menzies wasn’t so lucky.
Menzies pleaded not guilty to 14 offences, and during the trial more evidence emerged of other scams he was involved in. He was found guilty of each of the offences and sentenced to four years in jail.
Eliot Hastie is a senior news producer at Channel Ten, reporting on a range of general stories, specialising in foreign affairs and LGBTQ+ stories. He’s also a reporter for Gay Sydney News, where he covers LGBTQIA+ culture, politics and nightlife. He previously helped to build and launch ausbiz, Australia's only live streaming finance news channel, where he was also an executive producer and host. He has previously worked as a finance and business journalist for publications including Fintech Business, Real Estate Business and other Momentum Media titles. Eliot holds a journalism degree from the University of Westminster and brings experience in both broadcast and digital reporting. Contact Eliot: [email protected]
