Senator Mark Bishop

Westpac CEO Gail Kelly knowingly conceals fraud at the bank court documents and emails show

Westpac CEO Gail Kelly and Chairman Lindsay Maxsted are up to the neck in concealing fraud by staff at Westpac. I have the documents to prove it including internal bank emails and an email sent to me on Mrs Kelly’s behalf which is in effect an admission.  Both Gail Kelly and Lindsay Maxsted should be in jail for concealing a serious indictable offence.

The Westpac fraud is very similar in a lot of regards to the story this week on massive bank fraud by employees at the Commonwealth Bank which was on the  ABC’s Four Corners program this week called Banking Bad.

The Commonwealth Bank fraud has resulted in 1200 financial planning customers being compensated $50 Million for the fraud so far. In the Four Corners program a whistle-blower told the senate inquiry “I suspect a broader review is just going to uncover there are a lot more, like, you know, tens of thousands of clients who are probably entitled to compensation, and it’s never been looked at.” If you have superannuation which we all do it is a must watch or read the transcript. (Click here to watch or read) The Commonwealth Bank has used some very grubby tactics to conceal the fraud and harass people who complain as can be seen in a letter to Michael Fraser. The letter is from CBA executive John Geurts, is mostly broad and generalised, has very little specific detail and can be accurately described as nothing more than rambling dribble from a fool trying to intimidate. (Click here to read more)


Westpac made numerous multimillion dollar loans to Mario Girardo and were defrauded by him. At the time of Westpac making the loans Mario Girardo had no real assets, had three previous convictions for bank fraud and other frauds, was banned by ASIC from being a company director until 2007 and was awaiting trial for kidnap and extortion for which he was jailed for in 2011. Yet Westpac kept on lending him money.  The bank did eventually have him declared bankrupt as he was not paying his loan repayments but has refused to make a complaint to the police for fraud even though internal emails show they know that fraud has taken place.

In 2007 towards the end of Mario Girardo’s fraud spree Westpac put pressure on Patrick Hayes to do a joint deal with Mr Girardo to by a property. Mr Hayes did not know the background of Mr Girardo but the bank should have and highly likely did. The deal went bad as you would expect as Mr Girardo had no money and the bank instituted proceedings against both men. Mr Girardo was declared bankrupt and Mr Hayes is currently fighting in court as a self-represented litigant.

The documents and emails that I have relate to a 2006 fraudulent loan for $6.8 million from Westpac to Mr Mario Girardo which has nothing to do with Patrick Hayes. I wrote to Gail Kelly with the smoking gun evidence (Westpac’s own documents) and she had one of her staff respond and refused to take action. It is quite simple, if management have evidence of fraud against their company they have an obligation to report it to the police.

My email to Westpac CEO Gail Kelly

From: Shane Dowling 
Sent: Monday, 10 March 2014 12:11 PM
To: ‘’; ‘’
Subject: Westpac staff commit fraud – Involvement of Lindsay Maxsted

Dear Mrs Kelly

I am writing to you in relation to the fraud at Westpac that has been concealed by a number of Westpac employees. There is admission of the fraud in internal Westpac documents that are in my possession. The employees that have concealed the fraud include Chairman Lindsay Maxsted, John Murphy, Stuart Meager, Matt Sainsbury, and others.

If you look at attachment Westpac admit fraud it says:

“Please proceed against Girardo towards bankruptcy ASAP as it is obvious the bank has been subjected to some type of fraud in the original lend and loss will be significant.”

At the bottom of the attachment you will see a document from Allens Arthur Robinson lawyers explaining one element of how the fraud worked, which was getting an inflated property valuation so the purchaser could get an inflated and fraudulent loan.

Then if you look at attachment Westpac admit staff involvement in fraud where Westpac manager Greg McLachlan says in relation to the actions of Westpac employee Matt Sainsbury:

“whether there is a need for disciplinary action” and “It is concerning that the word of a non panel valuer and the purchaser have been given more credence then one of the Banks Panel Valuers especially given the very large difference between the two and it being an out of territory lending situation. The final two paragraphs of Shaynes email should also have been a clear warning supply of such accommodation was high and that some care in accepting the valuation provided was required.”

It is clear fraud had taken place and that Westpac had been defrauded. The fact that there has never been a complaint to the police for the fraud itself shows a cover-up by Westpac staff.

Matt Sainsbury’s conduct, which at best is disgraceful and at worst criminal, says there should have been a complaint to the police for fraud. Once again the fact there has been no complaint to the police shows a clear cover-up.

A highly likely hypothesis is that Mario Girardo bribed Matt Sainsbury and/or others at Westpac to get the $6.8 million loan and paid $5million for the unit and Mr Girardo pocketed the $1.8million balance. The original loan grew with further loans to $7.8 before Westpac sold the unit for $3.5 million and Westpac lost $4million and I am told Westpac lost another $11 million plus on other loans to Mr Girardo. It must be noted that Mr Girardo was on remand for extortion which was in the media at the time Westpac made a number of loans to him. He was also banned by ASIC from being a company director when some of the loans were approved by Westpac. Neither the ASIC banning or criminal charges facing Mr Girardo seemed to bother Westpac staff and they continued to loan him money.

What I find extremely disturbing is the two letters in relation to the same failing of Westpac to make a complaint to the police. One letter is written on behalf of the Westpac Chairman Lindsay Maxted (see attachment: Lindsay Maxted cover-up letter) which clearly implicates him in the cover-up. The other letter is written by Gary Johnston is December 2011. (See Attachment: Gary Johnston Westpac cover-up letterThe main relevant difference of the two letters is one line in Mr Johnston’s letter which says:

“The Queensland police also advised that there is no need for Westpac to lodge a complaint of its own at this stage, although it was open to Westpac to do so if it chose to

This line raises a few issues:

  1. It is not believable a police officer would say “there is no need for Westpac to lodge a complaint” given it was a $4million fraud. Can Mr Johnston name the police officer who gave that advice?
  2. If the police officer did say “it was open to Westpac to do so if it chose to” in relation to making a complaint then why did Westpac not make a complaint. Who at Westpac decided not to complain to the police in relation to the $4 million lost by Westpac from fraud by Girardo. Have Westpac sacked them? If not why not? It is so obvious a cover-up by Westpac staff.
  3. Westpac have a large legal team and external lawyers who were already looking at the issue and they would have known that they needed to make a formal complaint to the police given it was a $4 million fraud and as there was at the very least evidence that suggested that Matt Sainsbury was part of the fraud as the attachments show. Whether he was knowingly part of the fraud is something the police should have investigated.
  4. Why did Lindsay Maxsted leave the line out of his letter. Quite simply Mr Maxted would have known the line is a lie as it stands out a mile and that Westpac had an obligation to make a complaint of fraud to the police.

The above issues are currently part of a court proceedings involving Patrick Hayes. I am a journalist and investigate crime and to me the fact that the court proceedings are taking place is further evidence of the cover-up of the fraud. It is my understanding that counsel representing Westpac have already been caught deliberately misleading the court in evidence to try and cover-up the fraud.

Can you please advise what action you intend on taking and when you intend taking it. Do you intend calling the police and making a formal complaint and standing down Westpac staff until the matter is fully investigated?

I make a very serious allegation against Lindsay Maxsted in this email which is supported by the attached documents. Will you raise this allegation with the Westpac Board?

I look forward to your reply


Shane Dowling
Kangaroo Court of Australia

Gail Kelly’s letter (Click here for a PDF version which is better quality than below)

Gail Kelly Letter JPG

I have been told senior Qld Police are disgusted that Westpac will not make a formal complaint in relation to the fraud because Westpac’s own staff are involved. So what Paul Green says in the letter above on behalf of Gail Kelly is a lie and he fails to answer most of the questions that I asked. With a $4 million fraud you have no option but to make a complaint to the police as failure to do so is a criminal offence in itself. It is believed Westpac sacked at least two staff over the matter but even then failed to make a complaint to the police.

Other people have written to Gail Kelly before regarding fraud at Westpac and she palmed them off. This time I wrote to her with the banks own documents showing fraud at Westpac and she has also failed to take action and responded with lies to me. Gail Kelly and Lindsay Maxsted are the biggest fraudsters at Westpac and should be doing jail time. They are in effect ripping of millions of Australian’s who are customers and shareholders. The above would only be the tip of the Iceberg at Westpac.

Patrick Hayes  (self-represented) is back in the Supreme Court in Brisbane on Monday the 12th May 2014 in the matter Westpac Banking Corporation v Knight Property Investment NO.3 PTY LTD & another – Justice Peter Lyons – Court 20 – Floor 6 – 9.30 am. If you have time show up and support Mr Hayes. He is apparently up against 16 lawyers and barristers. Westpac are spending millions to have someone with no money declared bankrupt yet will not make a complaint to the police about a multimillion dollar fraud.

What to do: It is in everyone’s interest to have an honest banking system. The senate are currently investigating the Commonwealth Bank fraud and the chairman is senator Mark Bishop. Email Mr Bishop, the htreasure Mr Hockey and ASIC Chairman Greg Medcraft and Mrs Kelly and your local member demanding action by Westpac as per the draft below. I have just sent an email which is in the comment section below.


Dear Mr Bishop and Mrs Kelly

I request that you take summary action in relation to the fraud at Westpac bank etc. And copy the title of this post and first two paragraphs and put a link back. That makes it very difficult for them not to act.

The main reason Gail Kelly and other banks conceal fraud is not the fear of the cost of compensation although that is a concern. It is because they know a lot of their staff and their competitors commit fraud. So if they take action against their own staff for fraud it will send a signal to all staff to stop the fraud which will mean reduced sales and profit for the bank. And when profit is in the billions something as small as a 5% or 10% reduction can be a huge amount. Gail Kelly and others are happy to profit from fraud unless they are forced to stop it.

Admin: I was back in court on Thursday regarding the Kerry Stokes defamation proceedings. Stokes wants me to take down the post I published in February until the main hearings at least and Justice Hall has reserved his judgement. I haven’t been silenced but will hold fire at this point and say no more.

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23 replies »

  1. Years back a mate put together a medium sized townhouse development on the lower North Shore and went to Westpac for finance. The bank manager introduced him to a builder, the builder he needed to use if he wanted the finance. The builder was utterly incompetent, unscrupulous and failed to complete the construction, leaving my mate suing him and going back to Westpac for money to complete. Here’s the thing. My mate was pretty much broke at this point, but Westpac gave him the extended finance, conditionally, asking him to sign a letter acknowledging that Westpac had not introduced him to the builder. Ultimately, my mate won his case against the builder (not the least because he didn’t even hold a builders licence at the time he was introduced by Westpac nor at the time of signing the building contract) and completed the project. Westpac made a lot of extra interest from the deal. It was obscene and it nearly killed the man.

    • You all may find this video interesting. it is a real life case in WA re bank fraud and court fraud all combined. when the page fist opens it asks for a donation. just click it off and scroll to the top of the page. there you will find the most interesting video.

      • Shane, Who is the worst? 1) Pollies, 2) Bank Senior Employees. ???? Both Lie, Thieve, and cheat at some level of their career. The brown (from the dirt, blood, sweat, and tears) collared worker is left with the mess and bills to clean up.

  2. Almost unbelievable Shane but doctored property valuations have been going on for years and Gail Kelly is as dodgy as they come with a questionable record at St George Bank before jumping ship to Westpac. Good luck. Warren Olsen

  3. Dodgy property valuation is all that stands between the Australian Banking system and collapse. They know it. American Banks are surviving purely on fraud and drug money laundering these days.

    • absolutely paul. notice how property has corrected itself everywhere in the world except australia? banks and politicians all know that australia would be finished if property prices fell, that’s why they allow so many foreign buyers to keep prices up as well as importing so many immigrants to keep pressure on housing demand. plus of course perpetuating the whole lie by overvaluing and continued lending. but what goes up will ultimately come down – when everyone least expects it.

  4. The acting head of dispute resolution returns the letter on Kellys behalf. I only have to notice that and alarm bells are ringing of a cover-up. Keep the pressure up and they’ll run out of schemes to keep the issues covered up. The Vanguard goes Full Time, good to see and heres a donation.

  5. The most interesting thing here is how the fraud was dealt with at the lower levels and then covered up higher up. A young bankie is induced to use a non-panel valuer (how? what are panels for?) which,surprise surprise produces an inflated estimate, against which the bank lends. Why? What was the credit dept doing? were the more senor people waiving it through? Why were they acquiescing in the scheme?This sequence of events is described after the event as the junior fellow’s “1st and 2nd key learning experiences” What? To step away from the panel for no valid reason is a “learning experience?”The real crime is that management has squandered shareholders funds and no-one senior is held accountable. How often must this go on?

  6. Below is the email that I sent. It was sent to the treasure Joe Hockey, senator Bishop who is chairman of the inquiry into the fraud at the Commonwealth Bank, ASIC Chairman Greg Medcraft, Westpac Ceo Gail Kelly and her PA Mr Pok, and Paul Green (and his PA) who sent me the letter on behalf of Mrs Kelly

    From: Shane Dowling []
    Sent: Sunday, 11 May 2014 11:13 AM
    To: ‘’; ‘’; ‘’; ‘’; ‘’
    Cc: ‘’; ‘’
    Subject: Westpac CEO Gail Kelly knowingly conceals fraud at the bank court documents and emails show

    Dear Mr Hockey, Senator Bishop and Mr Medcraft

    I am writing to you in relation to the fraud at Westpac which the CEO Gail Kelly and the Chairman Lindsay Maxsted are clearly covering-up. I have published a post with the documented evidence on my website. The title of the post is “Westpac CEO Gail Kelly knowingly conceals fraud at the bank court documents and emails show”. And it starts off:

    Westpac CEO Gail Kelly and Chairman Lindsay Maxsted are up to the neck in concealing fraud by staff at Westpac. I have the documents to prove it including internal bank emails and an email sent to me on Mrs Kelly’s behalf which is in effect an admission. Both Gail Kelly and Lindsay Maxsted should be in jail for concealing a serious indictable offence.

    The Westpac fraud is very similar in a lot of regards to the story this week on massive bank fraud by employees at the Commonwealth Bank which was on the ABC’s Four Corners program this week called Banking Bad.

    Can you please advise what action you will take and when you will take it.


    Shane Dowling
    Kangaroo Court of Australia
    Ph 0411 238 704

    If you have superannuation which we all do (which is mostly controlled by the banks) or any investment in the banks you should send an email as well as per the above to try and make sure something is done.

  7. This looks to be a total disgrace by Kelly and Maxted.I hope the whole evidence comes out eventually but as these Ceo’s are overpaid and somewhat protected by the institutions , I doubt if anything will come from it. I hope I am wrong so Shane keep the pressure on >

  8. covering up fraud at a bank just to keep the lending cycle going and to hold their high profit margins are only part of the equation. i think it is much more than that. if i were to defraud a bank (as an employee or otherwise) i’m sure they would prosecute me to the full extent of the law. and rightfully so. but i believe it is just mates covering for each other – i’m sure all of them have some juicy dirt on all the others and thus all of them have to keep quiet to protect themselves.

  9. Shane I am thankful for your work in bringing this to the fore. If a blue collar worker wanted to borrow to purchase a home he/she is put through the wringer. If a loan is approved, then by some misfortune the couple fall behind, the banks come down with an iron fist. But let one of their own rip off the system and the curtains come down. I have never trusted the banks, but like us all am stuck with the problem.

  10. After my experience with the Commonwealth Bank , and other banks and financial institutions in Australia, I wouldn’t be surprised at a revolt arising in the not too distant future, as the realities of what they are doing to the people of this country come more to light. As the truth always eventually does.

  11. The worst bank that I have ever dealt with, placed a negative comment on their Face Book, giving personal data, which would have not mattered, only if they didn’t forward the comment to all my Face Book contacts. Privacy what privacy, complained to the government agency handling our privacy, they turned it around and told us that we were at fault, go figure !

  12. Westpac bank provided finance for my business. At the time when the interest was going up, we requested for them to fix the rate. They did not fix the rate and our business went belly up. They admitted that they don’t know why the rate was not fixed, when requested but, the financial ombudsman refused to deal with the matter through us because, our business was with the receivers !

  13. I am currently involved in $2.5 million fraud committed by ANZ Bank employee – I know of another $7 million fraud involving the same employee – ANZ Bank allowed the fraud to occur by not acting in 2011 when they were advised of said fraud – some two years later and nearly 10 million loss – the ANZ Bank prefer to spend $100,000 ‘s in Supreme Court than stop the fraud !!!

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