NSW: Kidnap charge after alleged argument over $100k fraud

AAP General News (Australia)
02-14-2008
NSW: Kidnap charge after alleged argument over $100k fraud

By Simon Kirby, Police Reporter

SYDNEY, Feb 14 AAP - The owner of a Sydney brothel ordered the gunpoint kidnapping
of his business partner following the alleged embezzlement of $100,000, a court has been
told.

Graeme Edwards, 42, of Sydney, was granted bail today in Sydney's Central Local Court
on a charge of aggravated kidnap.

Police allege that on Tuesday, Edwards confronted his business partner of ten years,
Ian Chandler, 47, about stealing money and clients from his $1,000-an-hour high-class
escort agency, Boardroom.

Mr Chandler had told police the dispute ended with him being forced into a taxi in
the company of two gun-toting standover men.

Edwards' barrister, Phillip Boulten SC told the court the kidnap allegation was a cover
story to deflect from Mr Chandler's fraudulent activity, for which there was "absolute
evidence".

Police documents tendered to the court state that during Tuesday's meeting at an office
on Shelley Street, Darling Harbour, Edwards forced Mr Chandler to hand over $4,000 cash
and mobile phones.

Edwards then allegedly called in three men, two of whom were armed, to forcibly escort
Mr Chandler home to seize further cash, a jet ski, a car and a stash of handguns and rifles.

The two armed men then took Mr Chandler outside the office and hailed a Silver Service
taxi, police told the court.

Mr Chandler told police there was a scuffle and he managed to escape from the taxi
when it stopped briefly in Bathurst Street in the city.

Police said the taxi then drove away with the two armed men on board.

Mr Boulten said his client completely denied Mr Chandler's version of events.

The meeting was to discuss the sale of the escort agency and those present were interested
parties, not "heavies", he said.

But Edwards did confront Mr Chandler about his "duplicity and dishonesty", Mr Boulten said.

"(Mr Chandler) was caught red-handed defrauding the business," he told the court.

"There's absolute proof that he was moving clients, stealing money and setting up arrangements
to undermine the company.

"In the midst of this there is an allegation he was kidnapped."

Mr Boulten said the security footage failed to show that Mr Chandler was forced to
go anywhere against his will.

He also questioned why the kidnappers would hail a taxi, suggesting the failure of
a driver to come forward had undermined the police case.

Mr Boulten told the court Mr Chandler had since contacted his client to issue death
threats against him.

Police Prosecutor Phil Weatherall, in opposing Edwards' bail application, said there
were fears the brothel owner could interfere with potential witnesses, as he had gun licences
and access to firearms.

Sgt Weatherall said the prosecution case was strong, as police had found Mr Chandler's
mobile in Edwards' possession.

There also was security footage showing Mr Chandler in the company of two men leaving
the office building, and his jumper was torn, indicating a struggle had taken place, he
said.

Magistrate Allan Moore granted bail on the basis there was not a strong case against
Edwards and that it hinged on one man's word against another.

"It may well be a case where the crown will struggle unless further material is forthcoming,"

Mr Moore said.

Edwards' girlfriend was required to post $10,000 surety and under strict bail conditions,
he must surrender any firearms within 24 hours and report daily to police.

The matter was adjourned to March 27 at the same court.

Police later renewed their appeal for the taxi driver - described only as an Asian
man - to contact them on 1800 333 000.

AAP sk/was/it/bwl

KEYWORD: EDWARDS NIGHTLEAD

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