Melbourne transport company guilty of TAC premium fraud

02 Sep 2011

MEDIA RELEASE: 2 September 2011

A Melbourne-based transport company was today found guilty of defrauding the Transport Accident Commission (TAC) of over $140,000.

The Melbourne Magistrates Court heard that the company, Palmtrans Pty Ltd which trades as Keilor Transport, committed the fraud over a decade.

The company was charged with nine counts of obtaining a financial advantage by deception and today pleaded guilty to all counts.

The company had falsely registered 74 vehicles (prime movers, forklifts, utility vehicles and personal vehicles) at a false non-metropolitan address in Ebden to obtain the benefit of a lower registration premium.

However, an audit of the company found that the vehicles were garaged at the company depot in Laverton North.

As a result, Keilor Transport obtained the total sum of $145,802 by deception from the TAC between 2002 and 2011.

Magistrate Jennifer Goldsbrough today convicted Keilor Transport and imposed a two-year good behaviour bond.

In addition, Keilor Transport has been ordered to pay $60,000 to the court fund which will be directed towards "support in the community for the reduction of road trauma in the State of Victoria".

The court also ordered the company to pay $750 in legal costs to the TAC, to be paid within 30 days.

The Magistrate indicated that general deterrence was very important in this case and said the company had engaged in highly aggravated offending over a period of nine years which denied victims of road trauma the funding they needed.

Company directors presented the TAC with a cheque for $145,802 before court commenced today.

A TAC spokesperson said the organisation took fraud very seriously and where there was evidence of misconduct, the TAC would exercise its strong legislative powers to investigate and prosecute.

For further information please contact: Sarah Henderson on 5225 6464 or 0429 294 262.