Lawyer Sheppard given until April 21 to submit defence over misappropriation of K52m belonging to Western people

News that matter in Papua New Guinea

 Lawyer Greg Sheppard

Lawyer Sheppard to submit defence over misappropriation of K52m belonging to Western people

PORT MORESBY: Magistrate Danny Wakikura yesterday (April 7, 2022) found sufficient evidence against lawyer Greg Sheppard and gave him until April 21 to submit his defence.

Sheppard, 65, from Perth, is charged with two counts of each of obtaining by false pretences, conspiracy to defraud, misappropriation of property, money laundering and one count each of forgery, uttering and attempting to pervert the cause of justice.

The money, totaling K52 million, belongs to the people of Western and was to be used for funding implementation of projects and programmes.

Details of the court proceedings were published by The National:

Sheppard to submit defence

April 8, 2022The NationalMain Stories

Greg Sheppard

By SCHOLAR KASSAS
MAGISTRATE Danny Wakikura yesterday found sufficient evidence against lawyer Greg Sheppard and gave him until April 21 to submit his defence.
Sheppard, 65, from Perth, Australia, is charged with two counts each of obtaining by false pretences, conspiracy to defraud, misappropriation of property, money laundering and one count each of forgery, uttering and attempting to pervert the cause of justice.
Magistrate Wakikura said he was satisfied that there was enough evidence for all the nine charges against Sheppard.
“Whether there is credibility on the evidence or not, the strength of the evidence is a matter only to be tested in a proper trial,” he said.
“But what is here before me appears to be enough for me to consider to warrant committal to the National Court.
“I have considered all the charges and it appears that it is related to the same money that was transferred into Y&W trust account which is where the case is now.
“Before considering committal, you (Sheppard) have the right to make your response upon sufficiency of evidence. You also have the right to make a response if you wish to say anything.” He then adjourned the matter to April 21 and extended Sheppard’s bail.
According to court documents, on Feb 15, 2018, Sheppard allegedly was engaged by Ok Tedi Fly River Development Foundation Ltd (OTFRDFL) to take up a number of civil cases against the independent State of Papua New Guinea.
During the term of Sheppard’s engagement, OTFRDFL through Y&W lawyers successfully obtained a court order on Aug 3, based on its proceedings No.75 of 2018, appointing OTFRDFL directors to replace the State’s board of trustees (BOD) and become the sole Trustee to Western people’s dividend community mine continuation agreement trust funds (WPPD-CMCA-TF) held with ANZ Bank. After the directors became the trustees to WPPD-CMCA-TF, Sheppard actively assisted the directors, using the court and liaised with ANZ bank officers and changed the signatories of the WPPD-CMCA-TF held at ANZ Bank.
As soon as the signatories to WPPD-CMCA-TF were changed, two separate payments of K15 million and K37 million were paid out as legal fees on Aug 17, 2018 and Dec 23, 2019 respectively.
It is alleged that Sheppard, personally with some assistance from other lawyers from Y&W, communicated with bank officers and successfully facilitated the two transactions amounting to K52 million.
It is alleged that K52 million was transferred from WPPD-CMCA-TF held by ANZ bank into Y&W Lawyer trust account conducted with Bank South Pacific where Sheppard was the sole signatory.
It was further alleged that the total trust funds were fully expended whilst the money were transacted into Y&W Lawyer trust account.
The original trust instrument established pursuant to Section 15 of the Public Finances Management Act 1995, approved by then finance minister John Hickey on June 12, 2007, reiterated that the purpose of the WPPD-CMCA-TF was to fund the implementation of development projects and programmes to benefit the people of the CMCA regions of Western. The allegations attracted an investigation after a complaint was lodged with the Commissioner of Police on Aug 20, 2020. After several months of investigations, Sheppard was arrested and charged with two counts each of conspiracy to defraud and false pretences and while awaiting court results from the district court, Sheppard allegedly committed further offences while on bail.
So, he was arrested again on June 9, 2020 under the Money Laundering and Terrorist Financing Act and Misappropriations of Property.
While on bail, Sheppard allegedly breached bail conditions again when he allegedly induced BSP branch manageress in Kiunga, Western, to hand over documents, that is bank statements from the account styled Pape Accountant & Business Advisors. The bank statement was handed to Sheppard.
Under Section four and eight of the Whistle Blower Act, information can only be given to authorised persons but Sheppard was allegedly not and he had obtained the statement unlawfully.
Sheppard also filed a Supreme Court application last July 10, using the bank statement and the matter is before Waigani Supreme Court.
Sheppard’s conduct has been observed as attempting to pervert the course of justice and falsifying documents. While formal charges were pending before the courts, Sheppard has allegedly knowingly breached bail conditions and committed fresh offences. He allegedly interfered with State witnesses, namely Andy Pape who is an expert in the current case that is before a committal court in Waigani.