Masterchef iron ore magnate accused of fraud

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Awesome. From the IBT:

Aaron Thomas, a former contestant on MasterChef Australia, has been slapped with a lawsuit by the very own company he founded. Mining firm Oakmont Resources alleged the former CEO embezzled $7.57 million from company money to fund his lavish lifestyle.

Oakmont Resources said an internal investigation discovered Mr Thomas had spent $US30,000 on a luxury jet charter, $US171,000 on a Tiffany & Co engagement ring for his Brazilian fiancée and $US53,000 on an Australian holiday. Other expenses charged to the company include over $US91,000 spent in Las Vegas, a holiday in Greece and a $US27,317 payment to a New York family law firm “in respect to what appears to be a custody matter” for his Brazilian fiancée.

“Thomas used the company bank accounts as a personal piggy bank, withdrawing substantial sums of money and transferring them to his personal accounts and to family and friends,” the lawsuit said, noting those were just “a few examples of a widespread pattern of misappropriation uncovered by the forensic accountants.”

Mr Thomas, when confronted with evidence of financial mismanagement, said he was entitled to the compensation he claimed. The lawsuit alleged the former CEO produced a “service contract” which “lacks a company seal, counter-signature of any other director, and does not exist in the company records.”

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.