A West Australian mining executive accused of gold theft has told the District Court he was "uncomfortable" transporting Doré bullion on the back seat of his car for his former boss, and said to the jury he tried to keep the revenue off the company's books.
Patrick Rhyan Keogh, 42, the former general manager of gold miner FMR Investments, is one of five people on trial over the alleged theft of 8,465 tonnes of gold-bearing ore from the Greenfields Mill near Coolgardie.
The gold the ore produced in December 2018 and January 2019, and which was sold to the Perth Mint, was worth $1.17 million, based on metal prices at the time.
Mr Keogh, who has pleaded not guilty to stealing as a servant and various other charges, took the stand on the 10th day of the trial and told the 14-member jury "it was my dirt".
He has maintained that FMR Investments founder, well-known WA mining entrepreneur Peter Bartlett, gave him permission to profit from the ore, referred to as the "clean-up pile", during a conversation sometime in late 2012 or early 2013.
"I knew it had value … that it was going to be worth something," Mr Keogh said.
"I said, 'Peter, with everything I've done for you recently, can I have that waste pile?'
"He told me I was being a bit cheeky but agreed to give it to me."
Gold ore a 'reward'
The court has heard the waste was a "reward" for Mr Keogh transporting up to 120 kilograms of unstamped gold bars on the back seat of his car from Mr Bartlett's house in Perth to the processing plant at Coolgardie.
The gold run allegedly occurred around the same time Mr Bartlett was due to face an upcoming trial on tax evasion charges to the tune of $50 million, which he was not convicted of alongside his late business partner Ron Sayers.
Mr Keogh told the court he had made a few trips from the mill ferrying Doré bars to Mr Bartlett's house.
"Maybe one kilogram a trip … all up, maybe 3-5kg, something like that," he said, adding that he did not know the origins of the 120kg of Doré gold he took back to the Greenfields Mill.
"I was uncomfortable … I didn't really like the idea," he said of transporting the gold in a private car.
He told the court he did not stop once.
"All the gold would usually be shipped by Brink's … they are armed guards," he said.
A financial statement tabled in court showed FMR Investments reported gold sales of $3.38 million in December 2012.
Mr Keogh told the court the company did not have an operating mine at the time and the gold sales represented "the Doré bullion I had taken to Greenfields Mill".
Emails from January 23, 2013 were shown to the court in which Mr Keogh instructed FMR Investments accountant Anna Mills (nee Tarasova) to remove the revenue from the company's books.
"I didn't know where the gold had come from and I didn't want it on the books," Mr Keogh told the court.
"I was responsible for signing off on reports … I would have been held accountable."
Mr Keogh has admitted that $590,411 was sent to his private business account on March 13, 2019 from Aqua Alluvial Pty Ltd, which is controlled by two of the co-accused, Simon Leslie Gash, 57, and his business partner, Russell Wilson Holden, 51.
He told the court he wanted the funds transferred to his private account for tax purposes and that he subsequently transferred the money to a mortgage offset account.
He told the court that he was under no financial difficulties at the time.
Mr Keogh told the court the decision to process the ore evolved in mid-2018 when he had a conversation with the then-mill manager and co-accused, Christopher Robert Burns, 76.
"Burnsy approached me and told me we had a potential way to treat the mineralised waste pile," he said of the 50/50 arrangement they reached with Aqua Alluvial Pty Ltd.
"He had my proxy … he was capable of reaching a joint venture agreement and making the commercial arrangements."
'Tell the truth'
After he became aware of the police investigation, Mr Keogh told the court he went to a meeting at Mr Bartlett's Busselton home, where FMR Investments director Bob Colville was present, and they discussed the draft police statement of Mr Bartlett.
Mr Keogh said he left the meeting believing the prosecution would go no further.
At a subsequent meeting, Mr Keogh told the court he was "angry and emotional" when he spoke to Mr Bartlett at his home.
"I asked him to tell the truth," he said.
"Peter said, 'There's nothing I can do, Paddy … they're still after me for tax evasion and I can't risk perjuring myself.'"
Mr Keogh also spoke with Mr Bartlett's wife, Julie, at a later meeting.
"I told her she needed to get Peter to tell the truth," he said.
"I apologised that Detective [Sergeant Chris] King [of the Gold Stealing Detection Unit] and the police were back in their lives.
"It looked like things were getting turned up again, and everyone's lives were a shambles in 2013 and 2014 [during the tax evasion trials]."
The court has also heard Mr Bartlett and Mr Keogh's father, Aidan Keogh, had been "great friends" over 40 years, and that the pair met with Mr Keogh at a Busselton cafe.
"[Aidan Keogh] just said, 'Pete, if you feel you've been wronged, we'll pay the money back,'" Mr Keogh told the court.
"I said, 'Don't give it to him' … because it was mine."
'You're a bit cheeky, but you can have it'
Under cross-examination by state prosecutor Paul Usher, Mr Keogh denied he had heard the clean-up pile referred to as the "superannuation pile".
Mr Keogh also testified there was no formal contract between the co-accused.
Asked for specifics around when and where he asked for permission to take the ore, he told the court he had been particularly specific.
"While we were driving past the waste pile ... I asked Peter if I could have that pile over there," Mr Keogh said.
"I pointed at the mineral waste stockpile.
"[Mr Bartlett] said, 'No worries mate ... you're being a bit f***ing cheeky, but you can have it'."
Mr Usher challenged that version of events multiple times, saying the conversation never took place.
"It definitely happened," Mr Keogh told the court.
Mr Usher questioned Mr Keogh over why he failed to advise the board of FMR Investments of his plans and why he did not mention the waste pile to Mr Bartlett again.
"You didn't want him to know, did you?" Mr Usher said.
"No," Mr Keogh replied.
"You knew it wasn't yours to take," Mr Usher said.
"No," Mr Keogh said.
Mr Keogh's defence lawyer Seamus Rafferty also asked him why he did not mention to Mr Bartlett that the stockpile was going to be milled.
"Peter [Bartlett] had given the pile to me … I didn't have to ask him twice," Mr Keogh said.
"What had you believed you could do with it?" Mr Rafferty asked.
"Whatever I wanted," Mr Keogh replied.
'Ambushed' by detectives
Mr Keogh told the court that after he became aware of the police investigation, he met with Mr Bartlett on four separate occasions, including three times at his Busselton house.
"I said I've been called by the GSDU (Gold Stealing Detection Unit) … what the hell is going on?" Mr Keogh told the court.
"I thought Peter [Bartlett] and I had a better relationship than that.
"Peter [Bartlett] said the board let the gold squad ambush me … they'd known about this [investigation] for two weeks."
Mr Keogh denied he had apologised for stealing the ore.
"I did [apologise] … I said I'm sorry for letting these pricks (referring to police) back into your life, mate," he said.
The defence wrapped up its case following Mr Keogh's testimony, with none of the four co-accused choosing to testify.
The trial, before Judge Christopher Stevenson, continues, with closing arguments expected to begin on Wednesday morning.
