New South Wales Fair Trading, a consumer protection agency, confirmed it had taken the action, warning that Patrick "Paudie" Kelleher and his wife Lisa, along with another man, could face up to two years in prison if convicted.
The trio, who describe themselves as "digital creators", had run a company offering online raffle tickets for "life-changing" cash and luxury prizes.
The watchdog stated: "NSW Fair Trading has commenced criminal proceedings against three individuals from Ace Competitions Ltd, alleging over $180,000 [€100,000] in charitable funds raised for the Sydney Children’s Hospitals Foundation was converted for personal use.
"It is alleged that the directors of Ace Competitions Ltd, Patrick Kelleher and James Keogh, as well as manager Lisa Kelleher, misappropriated charitable funds raised by selling online raffles offering prizes that were primarily exotic, luxury or high-performance vehicles."
NSW Fair Trading said Mr Keogh is facing three charges of converting to his own use, money raised by means of a gaming activity relating to the sum of $120,000 (€72,000), Mr Kelleher is facing one charge relating to the sum of $50,000 (€30,000), and Ms Kelleher is facing one charge relating to $17,500 (€10,500).
If found guilty, they could face a maximum of two years in jail and/or a fine of up to $20,000 (€12,000). They will appear in Parramatta Local Court next month.
A local newspaper said the Kellehers and Mr Keogh now call Sydney’s eastern suburbs home. Patrick Kelleher is originally from Co. Kerry, while Lisa is from Co. Wicklow, and the couple have four children.
Ace Competitions, which rebranded as Ace Premium on social media in late 2023, advertised a series of luxury holidays in Momi Bay, Fiji, $10,000 cash, vintage, high-end, and performance cars, as well as fashions from Louis Vuitton, as raffle prizes.
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The companies had thousands of followers on social media and claimed to be a "proud sponsor of the Sydney Children’s Hospitals Foundation" while offering "life-changing giveaways".
A video posted by Mr Kelleher on the Ace Competitions Instagram account in June 2023 shows him speaking from the children’s hospital, wearing an orange high-vis vest and holding a medical mask.
"For us, and everyone at Sydney Children’s Hospital, this is what it’s all about, giving back, making a change however big or small, and I appreciate your support guys," he said. "We will be back, we’ve got major stuff coming."
In December 2022, the same page posted a picture of Mr Kelleher handing over a cheque to the children’s hospital for $60,572. The caption read: "Our last tick on the list before we close out the year. Thanks to each and every one for all your continued support since we have started. It’s amazing to be a part of a wonderful foundation and to be able to raise these much needed funds."
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In November 2023, the Instagram page said: "Although we have relaunched, our values and ambitions remain the same. We continue to work closely with our sponsored partners at Sydney Children’s Hospital and have made commitments that we will be working hard to meet with help from all of you."
The most recent post shared by Ace Premium was a photograph of a Perth man holding a winning cheque for $100,000, posted in August 2024. Extra.ie has contacted Ace Premium and the directors but has yet to receive a reply.
Fair Trading Minister Anoulack Chanthivong said the allegations against the trio were "despicable".
"The NSW Government strongly condemns any attempts to manipulate and deceive consumers by targeting vulnerable members of our community," he said. "We encourage people to donate to reputable charities and be cautious when dealing with unfamiliar entities."
A Sydney Children’s Hospitals Foundation representative said it welcomed the Fair Trading investigation, but it would not comment further during criminal proceedings.
* This article was originally published on Extra.ie.
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