Skip to navigationSkip to contentSkip to footerHelp using this website - Accessibility statement
Advertisement

Los Vida Mexican restaurants linked to Plutus tax scandal

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

The directors of a Mexican restaurant chain linked to the alleged ringleaders of the Plutus Payroll fraud made almost $1.3 million in questionable transactions before winding up the company and leaving workers underpaid, according to preliminary investigations.

The Los Vida Mexican restaurants and bars, run by Mark Dopson across five locations in Sydney and Melbourne, used a payroll provider headed by a straw director connected to the Plutus fraud, which has allegedly defrauded the commonwealth of $165 million in tax.

Two weeks after Australian Federal Police arrested the alleged conspirators behind the fraud, including Adam Cranston, the son of deputy commissioner of taxation Michael Cranston, the Los Vida companies all went into voluntary administration.

Los Vida's plush Crows Nest restaurant played host to Adam Cranston's functions but he was always the last to leave, an ex-manager says. 

Administrator Mackay Goodwin's June 22 creditor's report, obtained by The Australian Financial Review, said Los Vida closed its doors owing $600,000 to the tax office but warned that figure was expected to increase once activity statements for the past two years were lodged.

While the administrators' preliminary investigations found no evidence the directors had acted dishonestly or fraudulently, it identified $1,274,289 in payments, particularly from Los Vida's Crows Nest location, which "potentially constitute unreasonable director related transactions".

Advertisement

"Our investigations into these transactions are ongoing and the matter will be further investigated should the Los Vida Crows Nest be placed into liquidation at the forthcoming meetings of creditors."

It said the Los Vida chains may have been trading while insolvent from at least March 2015 and the amount owing employees was undetermined.

Los Vida hosted Cranston functions

Los Vida was established by Mr Dopson, a former director of Ruby L'otel in Rozelle and Sumo Salad. Mr Ulysses Svoronos was a co-director with Mr Dopson in the Crows Nest restaurant

But the chain also had links to Adam Cranston's investment company Synep, which named the Mexican restaurant as an investment and "subsidiary".

Former manager at Los Vida's Crows Nest, Daniel Lucas, told The Australian Financial Review Synep often held office functions at the restaurant, including with Mr Cranston and co-accused Jay Onley.

Advertisement

"The only reason I remember Cranston is he was the last one to leave," he said. "My manager said he's worth millions."

Management also introduced Mr Onley to him as one of Los Vida's investors, Mr Lucas said.

Despite the functions only catering for about 30 people, Mr Lucas said management closed down the restaurant to host them and one Synep function in late 2016 included the madam of an escort agency.

Mr Lucas, who claims he is owed more than $6000 in pay, said Los Vida mostly hired visa workers who did not speak English and never paid them any superannuation.

Los vida received $1.9m from Plutus entity

Workers allegedly received pay from payroll company SAI Solutions but with constantly changing business numbers for the relevant Los Vida chain.

Advertisement

Some workers even had the wrong tax file number listed in their group certificates, Mr Lucas said.

SAI Solutions used to be run by director Vicki Hooites-Meursing, who is named in AFP documents as a "straw director" involved in the Plutus fraud but who has not been charged.

The AFP have alleged that the Plutus syndicate used smaller companies run by straw directors to make it more difficult to track underpayment of pay as you go tax.

While Los Vida was a primary depositor into SAI Solutions, the restaurant also received money from another alleged Plutus entity named Uneek Consulting Services.

ATO documents lodged in court say Uneek paid Los Vida Level 6, a related company owned by Mr Dopson, almost $1.9 million between April 2015 and February 2017.

Mackay Goodwin's report says its investigations are ongoing but warned creditors they may encounter difficulties recovering any "unreasonable transactions", including legal costs and a valid defence from the directors.

Mr Lucas complained that "the people that miss out are the most vulnerable, the poorest".

"They know we don't have the resources to fight back."

Mr Dopson and Mr Svoronos, who have not been charged with any offence, did not return requests for comment.

David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Tax & super

Fetching latest articles

Most Viewed In Policy