The hairdryers of the city of Port Stephens, South Australia have been caught up in a scandal over a sales fraud scheme that was designed to raise $20,000 for a charity, and is being investigated by the police.
Key points:The company’s founder was jailed for four monthsThe company has been caught red-handed for running a hairstyling scam that raised more than $20KThe ABC has obtained documents revealing the hairdorists at Port Stephens are being investigatedThe ABC understands the company’s founders, Michael and Kristy, are facing charges in the NSW Supreme Court, but it is not clear what charges they will face.
Kristy has been charged with the fraud, which was a scheme to boost a charity called The Hairshop in South Australia.
The ABC first revealed in January that Michael and his wife, Kristy Williams, were caught up and arrested.
The scheme involved a scheme that saw the company set up an online advertising platform and sell a range of products to the public, such as hair stylists, hairdresses, hair accessories and a range to sell karaoke tickets.
They also sold a salon at the Port Stephens Mall in Adelaide.
The Williamses have pleaded not guilty to all charges, including conspiracy to commit fraud and breach of the Corporations Act.
Michael Williams was sentenced to four months in jail, while Kristy has pleaded guilty to conspiracy to do an indictable offence and one count of failing to declare $5,000 in income.
Kristys’ defence barrister, Stephen McArthur QC, said Michael Williams and Kristys were both extremely remorseful and have been devastated by the experience.
“The defendant has been very remorseful in his own words and has acknowledged the consequences of his actions,” he said.
“They’re extremely remorsefull.”
Mr McArthur said Michael and Kristen Williams would likely have to pay back the money to the charity.
“It’s very difficult to put into words what a financial blow it is,” he told ABC Radio Adelaide.
“We know that the foundation for the charity is a very small group of people that come together to give a lot of money.”
When you’re in the business, the more money you raise, the bigger the chances you have of winning a lottery.
“He said that Michael Williams was not the only person to have benefited from the scheme.”
He’s not alone,” he added.”
There’s also the other people that are in this company, like the rest of the people that were in the scheme.
“The trial continues.