Tony Zappia knew of forgery claims
EXCLUSIVE by Josh Massoud | June 18, 2009 12:00am
FORMER Sharks boss Tony Zappia knew that would-be benefactor Clint Elford was under police investigation when he accepted $30,000 worth of cheques from the alleged fraudster.
The Daily Telegraph can reveal that Zappia received express advice from his lawyer, Pat Agostino, against dealing with Elford in January. Agostino informed Zappia that police were looking into claims of forgery against the 27-year-old, based on a complaint from another solicitor in September 2008.
But despite being warned, Zappia accepted and banked six cheques from Elford that were allegedly sent the following month. Elford was arrested on Tuesday and yesterday faced court on three counts of fraud, with police alleging he obtained a $520,000 life insurance payout by deception.
It's now alleged the $30,000 he donated to Cronulla was part of the illegitimate payout, received after Elford allegedly convinced an insurance company that he was dying from the rare terminal neurological disorder Shy Drager Syndrome.
Among the documents allegedly used to support his insurance claim - and representations made to Zappia - was a letter from a law firm based in Castle Hill.
Elford allegedly copied the firm's letterhead and forged the signature of one of its solicitors in written correspondence to Zappia, which informed the then Sharks boss he had been made executor of the Goulburn man's $13.8 million estate.
The Daily Telegraph has now learned Zappia passed the letter on to Agostino after meeting his lawyer about a separate matter in January.
It's believed Zappia was harbouring doubts about Elford's bona fides after he was made executor without meeting the 27-year-old.
Agostino promptly contacted the Castle Hill firm and was told the letter was a forgery. He was also told the matter had been reported to Castle Hill police on September 24, 2008.
In his next meeting with Zappia, Agostino relayed that information and his concerns.
But Zappia went ahead and accepted all six $5000 cheques Elford allegedly sent to him less than a month later.
Agostino declined to comment yesterday, citing solicitor-client privilege. Zappia did not return calls. But sources close to the ex-Sharks boss last night claimed the near-contemporaneous arrival of the cheques - which were real - countered Agostino's advice and convinced Zappia to maintain contact with Elford. Four cheques were banked into funds belonging to the Beyond Sharks Foundation, a company Zappia established to receive monies from Elford.
The remaining two - made out to Zappia and sent to his home address - were passed on in cash to Sharks coaching staff and spent on a team camp and equipment.
Kept in the dark about the arrangements, Cronulla's board this week hired a private investigator to pore over the receipts.
Findings are expected tomorrow and will be passed on to the NRL, which is poised to conduct its own salary cap investigation in step with police inquires about Elford's case.
