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Jake Lapham

Guy Sebastian's star power 'seduced' police in $1m fraud probe, court hears

It's alleged Titus Day embezzled money from former client Guy Sebastian.  (ABC News: Jake Lapham)

Police may have been "seduced" by Guy Sebastian's high profile as they investigated his former manager, who is accused of embezzling $1 million of the singer's money, a court has heard.

Titus Emmanuel Day is standing trial in the District Court accused of defrauding the pop star, who he managed for a decade.

In his opening address, Dominic Toomey SC told the court "there is an answer to every one" of the more than 60 charges Mr Day is facing.

"You may wonder whether the authorities or even police were wilfully blind … seduced by Mr Sebastian's high profile," Mr Toomey told the jury.

Guy Sebastian switched to Mr Day's new company in 2009 but a draft contract was never signed, the court heard. (AAP: Dan Himbrechts)

During his first day on the stand on Wednesday morning, Sebastian said he was introduced to Mr Day in 2007.

Sebastian signed a management contract with 22 Management, where Mr Day was employed, the court heard.

In 2009, Mr Day poached Sebastian for his own breakaway management company called 6 Degrees.

Sebastian said Mr Day described him as his "marquee client" during attempts to woo him.

The Australian Idol winner said he was "very proud" of what he'd achieved in his career at that point.

Sebastian told the jury Mr Day took over control of almost every aspect of his professional affairs, including the execution of contracts.

"Was it that case that you read through every document that was presented for you to sign," Crown prosecutor David Morters SC asked. 

"No," Sebastian replied.

"One of the benefits of my manager was he was a contract lawyer so I trusted ... he wouldn't do so unless it was ready to be signed."

Titus Day, a celebrity agent, disputes a civil claim made by Guy Sebastian in 2018. (ABC News: Jake Lapham)

The court heard a draft contract was drawn up when Sebastian switched to 6 Degrees, but according to Mr Morters, it was never formally executed or signed.

"That draft contract does not reflect the agreement that the parties reached when Sebastian commenced with 6 Degrees," Mr Morters said.

Mr Morters said 6 Degrees and Mr Day then took control of Sebastian's professional affairs, including performance rates, royalties and payments for ambassadorships.

The relationship continued until November 2017, when it ended in "hostile" fashion.

Mr Morters told the jury Sebastian then discovered "anomalies" in bank accounts.

"The Crown says payments were received by 6 Degrees on behalf of Sebastian for royalty payments that had never been remitted," Mr Morters said.

"He [Mr Day] was the person solely responsible for the management of funds."

Sebastian filed a civil claim in July 2018, which Titus Day disputes and has made cross-claims over.

The trial continues.

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