A KEITH man who falsely labelled and exported US$4m worth of seed to international markets risked the integrity and reputation of Australia’s export market, a court has heard.
Tim Cadzow, 52, was jailed for at least 22 months after being found guilty of 31 Federal offences involving the illegal export of nearly 600 tonnes of lucerne.
The court heard between June 2012 and January 2016, Cadzow was engaged on behalf of lucerne growers to market and manage 16 separate consignments of lucerne seed – which is regulated by Australian export laws – to international markets.
Cadzow, who operated a business marketing lucerne seed internationally, affixed fake export labels to all of the 25kg bags which made up the consignments.
Judge Michael Durrant said Cadzow falsified the type of seed and its certification, which was required for export to Organisation for Economic Co-operation and Development (OECD) member countries.
The system required a blue OECD label to be affixed to each bag with information including the contents of the bag.
“Blank blue labels had been obtained by you from the licensed supplier of the OECD labels which were similar to the OECD labels,” Judge Durrant said.
“Further you had designed a logo to be printed onto your labels which resembled the OECD label.
“You admitted … the colour you used and the logo you designed were intended to leverage off the quality associated with OECD labels.”
An investigation was launched after bags from the consignment were photographed in a Saudi Arabian market place.
It was revealed Cadzow procured a Strathalbyn business to prepare the lucerne for export, despite the company not having the appropriate registration.
Cadzow engaged the company to unbag, treat, re-bag and label the seed for export, while a batch destined for Chile was unbagged, treated and rebagged at the defendant’s unregistered Keith warehouse.
Judge Durrant said while Cadzow knew seed for export had to be packed at registered establishments and for sampling by authorised department officers, he did not believe the business needed to be registered.
In sentencing, Judge Durrant said a bio-security notice outlining the requirements had been sent to Cadzow’s former workplace in 2005 and 2010, but he was not satisfied the defendant saw either notice.
Judge Durrant considered a letter Cadzow had written to the department in May 2011 requesting information about whether prescribed goods were required to be prepared at registered establishments, but did not receive a response.
However, he told Cadzow it was “reckless” to proceed without confirmation.
Judge Durrant rejected a submission Cadzow was motivated by helping customers get a better than market price for the lucerne due to a “modest” commission between $60,000 to $100,000.
He labelled the offending as sophisticated and said the defendant “only stopped when you were caught”.
Cadzow’s strong community involvement, including as president of the Keith and District Basketball Association and holding executive positions at the Keith War Memorial Centre, the Keith Football Club and the Keith Table Tennis Club, was considered in sentencing.
But Judge Durrant said the nature, length, significant sum of money and exposing clients to risk contrary to the national interest reduced the personal mitigating factors.
“You risked the integrity of the Australian export market for lucerne,” he said.
“Specifically, the damage to the reputation of the region around Keith, which produces a significant amount of lucerne for export, could have been significant.
“You risked the nation’s reputation and the efforts of the government and all of those engaged in exporting to ensure reliable labelling and content.
“Others must be deterred from offending in a manner which puts in jeopardy the national interest.”
Cadzow was sentenced to four years and eight months imprisonment for all counts, with a 22 month non parole period.
