News Falls Creek Resort in porn scandal

Hunter

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Herald Sun :

Quote :Falls Creek Resort in porn scandal

ONE of Victoria’s top ski resorts has been embroiled in a porn scandal amid claims of financial mismanagement and misuse of public money.

ONE of Victoria’s top ski resorts has been embroiled in a porn scandal amid claims of financial mismanagement and misuse of public money.

Falls Creek Resort management used taxpayers’ money to cover some of a $18,000 phone bill incurred by the resort’s former chief when his phone accessed X-rated websites.

The State Government says it is “deeply concerned” by the scandal at the publicly owned resort and has questioned why CEO David Herman remained in the top job for two years after the content of the data charges was revealed.

In 2011, Mr Herman was on a weekend boys’ trip to New Zealand when his phone was charged international roaming fees for visits to sites containing images and videos of “upskirt students”, “teen jailbait”, “teens under shower”, “high school girls”, “drunk teens are fun” and “sleeping teens”.

The Herald Sun can also reveal that:

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THE Department of Environment may intervene if Falls Creek cannot answer questions about its finances.

STAFF raised concerns about the amount of public money spent by management on lavish social engagements.

FALLS Creek refused Herald Sun Freedom of Information requests, including details of expenditures and gifts received by senior public servants.
alls Creek finance officers noticed unusual phone charges on Mr Herman’s bill and quickly raised the issue with the board.

Sources say workers who spoke out were targeted and told to keep quiet.

Last night Mr Herman said the Falls Creek resort management board had undertaken a thorough investigation into the matters raised.

“While on vacation I, like many other Telstra customers at that time, failed to disable the data roaming facility on my mobile phone and incurred excessive data charges,” said Mr Herman.

“Telstra subsequently reduced the invoice for these charges and I covered the remaining net cost.”

Mr Herman refused to say if it was him or someone else who accessed the sex sites.

Falls Creek launched an internal investigation into the bill and hired lawyers to fight Telstra.

The same year, several cases of excess international roaming charges had been made public amid soaring complaints to the telecoms ombudsman about international roaming charges.

Telstra eventually reduced the charges to $7900 and Mr Herman was ordered to pay $7000. Falls Creek paid $900, plus legal fees.

In a statement, the resort’s management board wrote: “The inquiry, conducted both internally and externally found the former executive, while on vacation had used their mobile phone for personal use resulting in excessive data charges.

“After negotiations with the carrier, it was confirmed the service provider could not verify the source or nature of the data downloaded, nor could it validate or reconcile data to the actual download session.”

Mr Herman kept his job and lived on the mountain in a government-owned house with his wife and two children until he resigned last December.

He is now CEO of Lort Smith Animal Hospital in North Melbourne.

Falls Creek is yet to table its 2013-2014 annual report. Earlier this year, the delay prompted Environment Minister Lisa Neville to issue a warning.

Acting Environment Minister Gavin Jennings said: “Falls Creek advised the Government on March 10 that they were unable to table their statutory accounts 2013-2014 due to errors that existed in the opening balances of certain fixed assets, and elsewhere.

“I have been advised by Falls Creek that they are working with the Auditor-General ... and the report will be complete at the end of August.”
 
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Snorkler

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Bit of a beat up really.

That said, he shouldn't have been using his work phone at all to look up that kind of content. Though he did pay for most of it, though wonder what the cost was to the RMB in legal fees and sundries to get Telstra to reduce the charges.
 

teckel

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Bit of a beat up really.
................. Though he did pay for most of it,
The article says he was ordered to pay it. In other words, he didn't do it voluntarily. And why did the resort pay for the legal fees? The whole bloody damned lot should have been given to him to pay. Even then, he should have been up front and offered to pay before it even became an issue.
 
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Karicta

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I'm talking about the specific sites alleged to have been accessed, not the data used (or cost of etc; which is open slather as far as I'm concerned)
 

DPS Driver

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Over the years I've learnt not to take media reports with too much credence. I worked in the industry at one point for a large Australian media company.

It may well be he was protecting one of his own children who went crazy on dad's phone. Who knows.

Papers need to sell papers. I also suggest caution. Telecommunication companies are certainly fallible.
 

currawong

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porn is the headline, but there are other aspects mentioned in the article
THE Department of Environment may intervene if Falls Creek cannot answer questions about its finances.

STAFF raised concerns about the amount of public money spent by management on lavish social engagements.

FALLS Creek refused Herald Sun Freedom of Information requests, including details of expenditures and gifts received by senior public servants.
alls Creek finance officers noticed unusual phone charges on Mr Herman’s bill and quickly raised the issue with the board.

Sources say workers who spoke out were targeted and told to keep quiet.
<snip>
Falls Creek is yet to table its 2013-2014 annual report. Earlier this year, the delay prompted Environment Minister Lisa Neville to issue a warning.
 

Richard

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It may well be he was protecting one of his own children who went crazy on dad's phone. Who knows.

This does have a high probability - especially with the ease and ubiquitous use of 'Internet Sharing' on a modern smartphone. i.e turning it into an access point while traveling.
 

Snorkler

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Over the years I've learnt not to take media reports with too much credence. I worked in the industry at one point for a large Australian media company.

It may well be he was protecting one of his own children who went crazy on dad's phone. Who knows.

Papers need to sell papers. I also suggest caution. Telecommunication companies are certainly fallible.

Giving his work phone to someone else to use, just as bad behaviour.
This does have a high probability - especially with the ease and ubiquitous use of 'Internet Sharing' on a modern smartphone. i.e turning it into an access point while traveling.

Just as bad, giving access to your work account to others is a no no as well.
 

Richard

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sure,

but guilt by tabloid fortunately does not cut it in our courts.

There is a whole bunch of stuff missing or glossed over here. Why is this incident in the papers anyway - someone has an axe to grind. I had a standoff with a service company some years back over a ridiculous $10K fee myself. Did not make the papers.
 

DPS Driver

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Giving his work phone to someone else to use, just as bad behaviour.


Just as bad, giving access to your work account to others is a no no as well.
Who says he gave access to the phone.

I don't know the man, so am not defending him. I'm merely suggesting possible scenarios. Unless you know differently and have all the facts then I don't believe it's fair to attack any individuals position.
 
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DPS Driver

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Taking your kids to a bucks weekend in New Zealand. Classy.
Really. How do you know it wasn't a weekend away with some other families and one of the friends was getting married, so they had a few drinks for him.
Again speculation on what events took place and possibly more of an indictment on your own moral compass. Not all bucks are sex fueled orgies.
Hey it may have been but you don't know. Sounds like a family man who took his kids away with him. Why can't that be a positive.
 

sixty_eight

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sure,

but guilt by tabloid fortunately does not cut it in our courts.

There is a whole bunch of stuff missing or glossed over here. Why is this incident in the papers anyway - someone has an axe to grind. I had a standoff with a service company some years back over a ridiculous $10K fee myself. Did not make the papers.
You obviously didn't visit a site with “teens under shower”. Oops, have I just made this site contain “teens under shower”?
 

Seth

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Really. How do you know it wasn't a weekend away with some other families and one of the friends was getting married, so they had a few drinks for him.
Again speculation on what events took place and possibly more of an indictment on your own moral compass. Not all bucks are sex fueled orgies.
Hey it may have been but you don't know. Sounds like a family man who took his kids away with him. Why can't that be a positive.

have you read the first post and the quote from the article. check back in when you have.

more than aware that not all bucks weekends are sex fuelled orgies.

you are forgetting one key point in your hysteria. it was a work phone. that's all there is too it.
 

DPS Driver

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have you read the first post and the quote from the article. check back in when you have.

more than aware that not all bucks weekends are sex fuelled orgies.

you are forgetting one key point in your hysteria. it was a work phone. that's all there is too it.
I disagree. How do you know he was the person that accessed the content. It could easily have been someone he was not aware of using it. A drunk mate playing a joke on him or just being an idiot. As an employer & manager of people I've heard some crackers and some things people will do or have had done to them are mind boggling.

I have had work phones and generally kept my private phone as well, it's a total pain in the arse carrying two phones around with you. A lot of people with work phones only have the one phone and they are allowed to make personal calls on them. You don't know the conditions of his contract with his employer regarding his phone.

Seth, you may be on the money but it's a long bow you are drawing. Both our arguments are plausible. Hence innocent until proven guilty.

Sorry for going on about this but I have seen very good (innocent) people judged by the media, for the sake of financial gain, in selling a few papers. It's a pet hate. It's so easy to come out and slander someone with tenuous intel or misrepresentation of the facts. They're experts at insinuation.
 

Seth

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It's not a long bow at all. It's his phone, he is responsible for what happens to it. If he doesn't lock up his wifi then he is a fool. I would say it's a longer bow to say he is the victim here and that it wasn't him who accessed the stuff.

Don't know the conditions of his work phone?!?! find one work place that would sanction the use of a company device to watch that. ONE! The device is irrelevant, he couldn't watch it in his office so why should he expect to be able to watch it on a work phone in any location?
 
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DPS Driver

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Oh please, did I say any workplace would sanction the use of a company phone for that content. I said you do not know if he was allowed private use of the phone, ie for private calls or searching content under the terms of his work agreement. Bus timetables or whatever. Of course he or anyone wouldn't have access for that type of content.

I said, it is possible that he wasn't the one who accessed it, regardless of his responsibility.

Look at it this way, you're out at a pub, you go to the bar or toilet and leave your phone on the table with your mates, a mate grabs you phone searches low life content like this and thinks it's funny. You are unaware. Your wife grabs your phone when you get home and you are in it big time. Yeh! sure you're responsible. Are you going to defend your innocence? Of course you are.

AGAIN, we don't know the full facts of the situation, so speculation can be damaging.

My point wasn't is he a low life or not, it was don't believe everything you read.
 

Ian D

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Sorry for going on about this but I have seen very good (innocent) people judged by the media, for the sake of financial gain, in selling a few papers. It's a pet hate. It's so easy to come out and slander someone with tenuous intel or misrepresentation of the facts. They're experts at insinuation.

:eek: are you saying that you can have an opinion other than what is presented in the media (or by politicians) ? Wow, stay well clear of the Q&A thread then, you will not be welcome there!!
 
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Seth

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Oh please, did I say any workplace would sanction the use of a company phone for that content. I said you do not know if he was allowed private use of the phone, ie for private calls or searching content under the terms of his work agreement. Bus timetables or whatever. Of course he or anyone wouldn't have access for that type of content.

I said, it is possible that he wasn't the one who accessed it, regardless of his responsibility.

Look at it this way, you're out at a pub, you go to the bar or toilet and leave your phone on the table with your mates, a mate grabs you phone searches low life content like this and thinks it's funny. You are unaware. Your wife grabs your phone when you get home and you are in it big time. Yeh! sure you're responsible. Are you going to defend your innocence? Of course you are.

AGAIN, we don't know the full facts of the situation, so speculation can be damaging.

My point wasn't is he a low life or not, it was don't believe everything you read.

Unaware or not it is his phone, his responsibility.

nothing more annoying than someone thinking they are covered in teflon.
 
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DPS Driver

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:eek: are you saying that you can have an opinion other than what is presented in the media (or by politicians) ? Wow, stay well clear of the Q&A thread then, you will not be welcome there!!
Balance Dark Lord balance.

Shall we start a Q&A thread on Q&A. That might be fun:D
 

Snorkler

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It doesn't matter which way you skin the cat, it makes him look bad.

It boils down to whether there was control of the phone or not. Either view has a serious flaw to it. I don't know if I'd be all that willing to put the hands of my company into someone who can't control the access to a sensitive item like a phone.

At $210K p/a, he should have been made to pony up the money himself and the board shouldn't have proffered any services of taxpayer money to help him out.
 

Snorkler

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Must feel some empathy for him though, he's potentially done damage to his career over something so stupid. That's unless talent scouts don't do google searches.

Imagine having to dodge that bullet in an interview..... So, tell us more about the FCRMB porn incident.
 

Annabuzzy

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Can I get this straight. A guy accessed porn sites (maybe) on his work phone. He paid the vast amount of the bill. Falls stumped up $900.

Is the $900 a significant enough expense to justify this stuff? Definitely has a whiff of score settling.
 

Snorkler

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Can I get this straight. A guy accessed porn sites (maybe) on his work phone. He paid the vast amount of the bill. Falls stumped up $900.

Is the $900 a significant enough expense to justify this stuff? Definitely has a whiff of score settling.

Not quite correct. The bill was for about twice that much, FCRMB had negotiated with Telstra over the bill to have it reduced. There probably was a big back and forth at first, maybe prior to FCRMB actually finding out what the charges were for.

Call me a prick, but I would have made him sort the bill out himself and then reimburse the company for costs. Paying someone $210K is about paying them so they don't do this type of act.
 
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coolair

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Just pull a Craig Thompson, someone stole it, but it was returned , worked for him.
 

snowduck

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Herald Sun :


STAFF raised concerns about the amount of public money spent by management on lavish social engagements.

FALLS Creek refused Herald Sun Freedom of Information requests, including details of expenditures and gifts received by senior public servants.

Resort entrance fee. Covering more than ski patrol and snowclearing the carparks ...
 

Towie97

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In 2011, Mr Herman was on a weekend boys’ trip to New Zealand
Given the salaciousness of the story, I wish they hadn't been so loose with the description of the trip's nature.
Clearly this has been poorly dealt with on all sides, but many readers probably don't see the clear sensationalism.
____
T97
 

Towie97

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unable to table their statutory accounts 2013-2014 due to errors that existed in the opening balances of certain fixed assets
Er, wouldn't the last year's closing balance suffice??

Also, I can't imagine the lift co are too happy about this story breaking, give most punters wouldn't realise they aren't one and the same!
____
T97
 

currawong

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Er, wouldn't the last year's closing balance suffice??

____
T97
apparently it's related to the change in accountants. Something that had previously been signed off by auditors some years ago is being questioned by new accountants. totally unrelated to the phone thing or any other bad behaviour
 

currawong

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Also, I can't imagine the lift co are too happy about this story breaking, give most punters wouldn't realise they aren't one and the same!
____
T97
From this morning's marketing email from the lift co
Make-up Snow. -

-

June was like a bad boyfriend. He was nice to us at first, made us feel so special on the long weekend together, and then he gave us nothing. Left us hanging. Went off to New Zealand with his brothers on a boy’s trip (they go too hard too early most years and usually end up broke and disappointed).
 
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