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COVID fraud sentencing
Martin Kenneth Kells faced a representative charge of dishonestly using a document to get money he wasn‘t entitled to when he appeared for sentence on 11 September. Kells is a salary and wage earner but previously a director and trustee of multiple entities.
In April 2020 the government announced the Small Business Cashflow Scheme loan (SBCS) scheme as part of its COVID 19 response. It was implemented using a “high trust” model to help businesses access funds to support their business during the pandemic.
Eligibility included a minimum 30 percent decline in actual or predicted revenue between January and June 2020. The business also had to exist before 1 April 2020.
Kells made six SBCS applications in his name and that of his related companies and trust, in each case knowing his eligibility declarations were false. He received $70,800.
The money was paid either into his personal account or an account that he controlled. Kells has made no voluntary repayments, but his brother repaid one loan of $11,800.
Rather than using the taxpayer funded loans to support legitimate businesses the money was spent on groceries, school fees, credit card payments, alcohol or transferred to his ex-wife.
Kells application for a discharge without conviction was declined. In assessing the gravity of the offending, Judge Jelas accepted that anxiety and depression, the COVID-19 restrictions, and financial pressure arising from debt contributed to his decision to act dishonestly.
As to the consequences of conviction, Her Honour accepted that a conviction would affect Kells’ ability to travel but noted a conviction was not the only thing that might need to be disclosed to overseas authorities, citing his bankruptcy.
Judge Jelas concluded that the consequences of conviction were not disproportionate to the gravity of the offending.
Her Honour also ordered Kells to pay the remaining core debt of $59,000 by 18 September.
Last updated:
14 Sep 2026