Senior detectives from the Kalgoorlie-based Gold Stealing Detection Unit were investigating two prospectors when they stumbled across an alleged million-dollar gold theft involving senior management at a West Australian mining company, the District Court has heard.
Five people are on trial over the alleged theft of 8,465 tonnes of gold-bearing ore from the Greenfields Mill – owned by FMR Investments — between December 2018 and January 2019.
Based on gold prices at the time, the gold ore had an estimated value of $1.17 million.
Former FMR Investments general manager Patrick Rhyan Keogh, 42, and former mill manager Christopher Robert Burns, 76, have both pleaded not guilty to stealing as a servant and various other charges as part of the trial.
On day seven of hearings, the court heard that the police investigation, dubbed Operation Storm, began in 2020 with an initial focus on Russell Wilson Holden, 51, and Simon Leslie Gash, 57, who are fighting various money laundering and fraud charges.
Mr Burns's interview with detectives at Busselton Police Station on January 5, 2021 – the same day a search warrant was executed at his Geographe home – was played to the court on Wednesday.
"You said you've been investigating friends of mine," Mr Burns said on the tape, which was one hour and 44 minutes long.
"Yes, that's right," Detective Senior Constable Andrew Kettle replied.
'Every dog has his day'
During the interview Mr Burns told detectives he had known Mr Gash and Mr Holden for more than 12 years and had socialised with them on a few occasions.
"I'd had a couple of beers in their yard in Kalgoorlie," Mr Burns said.
But texts revealed later in the police interview and played to the court highlighted the growing tension in their relationship.
"[Mr Keogh] is a self-centred c*** of a person … every dog has his day," Mr Burns said in a message to Mr Gash.
Asked by the interviewing detectives what he meant in the messages, Mr Burns said he tended to "call a spade a spade".
The prosecution alleges FMR Investments received $838,084 to cover its costs and that $2.5 million was transferred to Aqua Alluvial Pty Ltd, which later made payments of $587,291 each to Mr Keogh and Mr Burns, equivalent to a 25 per cent cut of the profits.
The court was shown Australian Securities and Investments Commission documents that named Mr Gash and Mr Holden as directors of Aqua Alluvial Pty Ltd.
The court heard Mr Burns collected cash payments "once or twice" from Mr Gash and Mr Holden at an industrial yard in West Kalgoorlie.
During his police interview, the detectives asked Mr Burns how much money he was making out of the deal.
"I'm not 100 per cent sure," he said.
"I was getting some cash … the plan was I would do a bit of work for them in the future and get some income, because I'm not on a pension."
The detectives then asked how the deal came about.
"[Patrick Keogh had] spoken to [FMR Investments founder and director] Peter [Bartlett] … I didn't see an issue," Mr Burns said.
The court was shown documents indicating that Mr Burns signed off on the gold in circuit calculations on behalf of Aqua Alluvial Pty Ltd.
He responded "I don't know" when the detectives asked if it was normal to sign off on behalf of a client.
$90,000 cash payment questioned
Mr Burns denied suggestions from the detectives he paid $90,000 to Ms Dombroski out of his share to "keep private" because "something shonky has gone on there".
The court heard Mr Burns handed Ms Dombroski the money in an envelope, telling her "don't ask questions."
"At the time I thought she deserved it for the work she'd put in," he said, adding he believed she should have been given a raise by FMR Investments.
"She's managed the site extremely diligently every time in my absence."
"Why give her $90,000 just for doing her job?" Detective Sergeant Chris King asked.
"Looking back it certainly wasn't to keep her gob shut," he said.
"She said, why are you being so generous? And I said it's because I think you deserved it for the last four or five years."
Mr Burns said Mr Keogh told him they had permission to process the ore.
"Paddy [Mr Keogh] was of the opinion that was fine," Mr Burns said.
"I didn't hear that [permission to profit from ore] from Peter [Bartlett]."
'Dodgy dealings' rejected
In earlier testimony, the court heard Mr Burns retired on January 8, 2019 — the day after the milling of the allegedly stolen ore was completed.
Mr Burns's separation paperwork was shown to the court, which showed he had resigned on November 9, 2018.
The last day worked was listed as January 8, 2019 and his termination became effective after his last rostered day off on January 14, 2019.
Mr Burns said he left the company on "reasonable terms" and that there was "no bad blood".
As mill manager, he was earning about $215,000 a year, plus bonuses.
Under cross-examination by Mr Burns's lawyer Tom Percy KC, Detective Senior Constable Kettle confirmed that Mr Burns had no prior criminal record and that he did not know him prior to the investigation.
Mr Percy has previously told the court his client suffered from "chemotherapy brain", which made him have trouble with recall, after being diagnosed with leukaemia in 2019.
Mr Percy has told the court there was no fraud or "dodgy dealings", and described the processing deal as "mutually beneficial" and a "win-win for everyone", including FMR Investments.
