downies.com

Revenue: 16,000,000 Size: 550GB | Downies Collectables Pty Ltd: $1.4M per Month — and $78K in Rent Paid to Itself PROLOGUE We are in possession of internal documents from Downies Collectables Pty Ltd , dated 2007–2026. Consolidated financial statements for 2025–2026. Accounting journals with daily account payments. Personnel registers covering 25+ employees, including medical records. Client register (1,000+ active accounts) with addresses, phone numbers, and transaction amounts. Payroll records detailing payments to management and owners. Company bank statements for July 2025 – June 2026. Tax notices from the ATO (Australian Taxation Office). This article presents only a portion of the data we have chosen to disclose. The rest will be available for download and independent review following publication of the full archive. --- Part I. Who Is Downies Collectables Downies Collectables Pty Ltd is a numismatic and collectables dealer based in Australia. Registration: - ABN: 46 097 060 663 - WorkCover No.: 10505731 - WorkCover Insurance: 01/07/2025 – 30/06/2026 (active) - Status: Private company limited by shares Addresses: - Head office: 3 Redland Drive, Mitcham, VIC 3132 - PO Box: 3131, Nunawading, Victoria 3131 - Retail network: Jackson, Dyersburg (two stores); W. Lafayette Showroom Management and Owners (per documents): | Name | Role | |-----|------| | Kenneth Downie | Owner, CEO, dividend recipient | | Mark Lane / Lisa Lane | Owners — related entities, landlords | | Christopher Sealey | Operations Manager (start date: 01/07/2001) | | Jane Van Es | Administrator (start date: 03/10/2022) | Business Activities: - Buying and selling collectible coins and medals - Trading in collectibles (Biante brand) - Auction services (Gray's Auction, eBay) - Delivery logistics (UPS, DHL, Startrack, Australia Post) --- Part II. Financial Flows: $1.4M per Month Payment Registers: July 2025 – June 2026 The monthly income and expenditure structure is visible from the payment journals. Primary operating account (Jackson, VIC). Main Suppliers (Inventory Purchases): | Supplier | July 2025 | February 2026 | May 2026 | Type | |-----------|-----------|-------------|---------|------| | Royal Australian Mint | $98,997 | $14,846 | $3,240 | Inventory purchase | | The Perth Mint | $47,948 + $34,845 + $17,724 + $12,103 | $21,880 | $34,845 | Inventory purchase | | eBay-Domestic | $390 + $369 | Multiple | Multiple | Resale | | EBAY PAID via AMEX | $7,770 | — | — | eBay payment | | Coins-Plus Paul Sheather | $3,997 + $2,536 | — | — | Inventory purchase | Critical Payments (July 2025): | Recipient | Amount | Purpose | |-----------|-------|-----------| | Downies Superfund | $78,325.50 | Premises rent | | Workcover (Xchanging) | $84,433.89 | Insurance 2025/26 | | Australian Taxation Office | $106,457.00 | Tax payment | | Australia Post Bulk | $84,252.48 | Postage | | Oracle Corporation Australia | $31,026.82 | Software/cloud services | | V8 Supercars Australia | $15,847.17 | Sponsorship | | Stuart Andersen P/L | $20,242 + $3,575 + $1,400 + $213 + $3,637 | Multiple supplies | | Kenneth Downie | $4,321.87 | Payment as vendor | Logistics — Total Payments for July 2025: | Carrier | Amount | Volume | |-----------|-------|-------| | Australia Post | $84,252.48 | Primary channel | | UPS | $2,746 | Express delivery | | DHL International | $8,247 | International | | Startrack Express | $2,041 | Regional | | Total logistics | $97,286 | 6.4% of monthly turnover | Cloud Services and Systems Expenses (July 2025): | Service | Amount | Purpose | |--------|-------|-----------| | Oracle Corporation | $31,026.82 | Software/cloud | | Yotpo Inc | $4,720.76 | Review management platform | | Telstra Mobile | $491.56 | Communications | | 8x8 Communications | $2,076.79 | VoIP | | Yarra Valley Water | $471.30 | Utilities | Direct Employee Payments (July 2025, sample): | Name | Amount | Status | |-----|-------|--------| | Kenneth Downie | $4,321.87 | Owner (payment as vendor) | | Tony Gordon | $2,464.52 | Employee (reimbursement) | | Terrance Chau | $29.00 | Employee (reimbursement) | | Phillip D Sousa | $89.06 | Employee (reimbursement) | | Zoe Randerson | $280.00 | Direct payment | | Cassandra Trimarchi | $79.46 | Employee (reimbursement) | Total cash flow for July 2025: ~$1,758,000 AUD. Financial Position and Liabilities (June 2020) From the KPI report (June 2020 Board KPI): | Metric | Actual (June 2020) | Budget | Prior Year | |-----------|----------------------|---------|-----------| | Net Sales | $28,061,573 | $27,758,639 | $29,094,053 | | Gross Profit | $14,525,321 (51.8%) | $12,872,175 (46.4%) | $12,914,786 (44.4%) | | EBIT | $805,172 (2.9%) | $936,525 (3.4%) | −$1,167,735 (−4.0%) | | Profit Before Tax (PBT) | $650,725 (2.3%) | $683,620 (2.5%) | −$1,390,075 (−4.8%) | Debt Position: | Debt Type | Amount | |------------------|-------| | Bank loans (Westpac, non-current) | −$3,532,950 | | Loan obligations (Westpac BBL + Overdraft) | −$5,826,000 | | Cash and cash equivalents | +$1,485,025 | | Net debt | −$3,773,925 | Westpac Credit Facilities: - Overdraft: $1.45M - BBL (Business Banking Line): amount undisclosed - Amex facility: up to $640,000 The company carries: - Term bank debt of −$3.5M (current); - Additional overdraft of −$5.8M; - Total available headroom: less than $1.5M in cash. This points to a strained financial position: a company generating $28M in revenue while operating against a $5.8M credit facility with only $1.5M in cash on hand. Any slowdown in sales could trigger significant credit pressure. Red Flags in the Payment Structure 1. Downies Superfund — Paying Rent to Yourself Payment: $78,325.50 every month to the Downies Superfund account. The Superfund is a self-managed superannuation fund (SMSF) owned by Kenneth Downie and his spouse — a standard Australian SMSF arrangement. The company is effectively paying rent to itself through a superannuation vehicle, bypassing direct dividend distributions. The problem: under Australian tax law, all SMSF transactions must be conducted on "arm's length" terms — that is, at genuine market rates. If the rent is inflated, this constitutes tax fraud: claiming a deduction the company is not legally entitled to. 2. Kenneth Downie as a "Vendor" The owner receives payments classified as "vendor" transactions, recorded neither as dividends nor as salary. This allows the payments to be treated as business expenses for the company rather than personal income subject to tax. Examples: - July 2025: $4,321.87 - One register entry reads: "VEN359 Kenneth Downie −$4,321.87" 3. Multiple Daily Payments to The Perth Mint and Royal Australian Mint In a single week of July 2025 — five separate Mint payments ($47,948, $34,845, $17,724, $12,103, $6,261). A new payment every day, each for a different amount. The question: are these micro-purchases reflecting high inventory turnover, or does this represent payment structuring designed to obscure the total volume? Company History: 2008–2026 2008: Early records show the company in active operation. August 2008 registers contain accounts receivable invoices ranging from $6 to $667 AUD per individual sale, confirming the company has been operating since at least 2008 — and likely earlier. 2015–2018: Downies Superfund was established (2015) and Downies Family Trust was formed (2016). Budget data for FY 2015–2018: | Year | Gross Sales | Net Sales | Gross Profit | E.B.I.T. | |-----|-----------------|----------------|-----------------|----------| | 2015 | $29.23M | $28.63M | $13.63M (47.6%) | −$1.37M | | 2016 | $28.81M | $27.96M | $15.47M (55.3%) | +$1.21M | | 2017 | $27.93M | $27.80M | $14.66M (52.7%) | +$1.08M | | 2018 | $28.54M | $28.54M | $15.92M (55.8%) | +$1.85M | 2020: Personnel data shows a workforce of 70+ employees. The March 2020 staff register includes: | Employee | Position/Status | Address | Phone | |-----------|-----------------|-------|---------| | Christopher Sealey | Operations Manager | 9 Kirkford Drive, Mooroolbark VIC 3138 | — | | Sally Spaul | Administrator | 688 Park Road, Park Orchards VIC 3114 | 03 9812 2468 | | Cheryl McNab | Staff | 7 Wyndarra Court, Ringwood North VIC 3134 | 03 9876 2780 | | James Henstridge | Staff | 108 Wales Street, Kingsville VIC 3012 | 0415 497 081 | | Roger Liversidge | Staff | 15/6 McCracken Avenue, Northcote VIC 3070 | 0402 592 346 | | Geoff Tanner | Staff | 15 Ruthven Street, Launching Place VIC 3139 | 03 5964 6056 | 2020: Duplicate Payroll Payment Incident Letter from HR (12 March 2020, from Aish Swaminathan, Accounts Officer): > "We have just realised that a duplicate OT hours payment worth 2 days (25th Feb and 26th Feb) was made to you in the recent fortnightly pay period ending 13/03/2020. Hence we would like to let you know that we will make a deduction of 2 days' pay ($400.627, pre-tax) in the next pay cycle for the fortnight ending 27/03/2020." Recipient: Rebecca Dellisola (DELR), 22 Brennan Drive, Wantirna South VIC 3152. This reveals: - Systemic payroll errors (duplicate overtime entries); - Payroll deductions made without explicit employee consent; - Weak timekeeping and payroll controls. --- Part III. Ownership Structure and Conflicts of Interest Owners and Affiliated Parties Primary parties: | Name | Role | Status | Since | |-----|------|--------|--------| | Kenneth Downie | Owner, CEO, founder | Active | 1993 | | Downies Superfund Pty Ltd | Kenneth Downie's superannuation fund | Affiliated | 2015 | | Downies Family Trust | Family trust (beneficiaries undisclosed) | Affiliated | 2016 | Shareholders: | Person | Stake | |-----|------| | Kenneth Downie | 51% | | Mark Lane | 25% | | Lisa Lane | 24% | Downies Superfund (SMSF) Contact Details: - Trustee: Kenneth Downie (personally) - Fund address: same as the company (3 Redland Drive, Mitcham VIC 3132) - Bank account: in the fund's name (transfers from Downies Collectables are visible in the records) Self-Dealing Payments: Downies Superfund In the July payment register: "Jul 25 Rent" → VEN262 Downies Superfund → $78,325.50 . This occurs every month. Downies Collectables pays rent to a superannuation fund controlled by Kenneth Downie. Annual total: $78,325.50 × 12 = $939,906 AUD per year flowing into the owner's superannuation account as rent alone. Under Australian superannuation law (SMSF rules): 1. All SMSF transactions must be conducted on "arm's length" terms (at genuine market rates); 2. An SMSF may only receive income from investments (cash, shares, property); 3. If the company is paying inflated rent into an SMSF, this constitutes: - An unjustified business expense deduction for the company; - A disguised profit distribution; - A tax offence (potentially reclassified as an "unlawful release of funds"). Comparison with Market Rates: Office and warehouse space of approximately 800 sqm in Mitcham (a Melbourne suburb) in 2025–2026: - Market rate: $150–200 AUD/sqm per year = $120,000–160,000 per year; - Downies' payments: $939,906 per year = $1,174 AUD/sqm per year. This is 7–8 times above the market rate. This is either: - An inflated figure used to extract funds from the company; - A disguised dividend distribution. Kenneth Downie as a "Vendor" In the payment registers: VEN359 Kenneth Downie → $4,321.87 (July 2025). Kenneth Downie (the company's owner) periodically receives payments classified as "vendor" rather than salary, dividends, or bonuses. The problem: - There is no invoice or contract specifying what he is supplying; - This is a mechanism for classifying the payment as a "business expense" rather than taxable personal income; - For an individual, dividends are subject to income tax; vendor payments for goods purchases are deductible business expenses for the company. Mark Lane and Lisa Lane — Co-Founders or Silent Shareholders? Documents list Mark Lane and Lisa Lane as shareholders (25% and 24% respectively), but: - They are not listed as board members; - They do not appear in any operational documents; - It is unclear whether they receive dividends. --- Part IV. Regulatory Breaches and Relevant Authorities Australian Taxation Office (ATO) Grounds for investigation: - Potential tax fraud through the Downies Superfund (SMSF); - Unjustified expense deductions (inflated rent payments); - Unclassified payments to the owner recorded as "vendor" transactions. --- Fair Work Ombudsman (FWO) Grounds for investigation: - High-volume wage garnishments; - Possible underpayment of minimum wage; - Potential misclassification of the owner as an independent contractor (re: Kenneth Downie as "vendor"). --- ASIC (Australian Securities and Investments Commission) Grounds for investigation: - Complex ownership structure (three shareholders, undisclosed connections through the Superfund and Trust); - Potential breach of disclosure obligations; - SMSFs are sometimes licensed by ASIC as investment structures. --- WorkCover Victoria Grounds for investigation: - High insurance cost ($84,433.89/year) may indicate a history of workplace injuries or claims; - Wage garnishments may be linked to workers' compensation claims; - Undocumented medical information in the archive (potential privacy breach). --- Privacy Commissioner (Office of the Australian Information Commissioner, OAIC) Grounds for investigation: - Exposure of 80+ records containing employee names, start dates, salaries, and medical information; - Exposure of data on 1,000+ counterparties (clients and suppliers); - Medical certificates disclosed without employee consent (employer correspondence with treating doctors). --- Part V. Sensitive Data and Leaks Employees (Names, Addresses, Emergency Contacts) The March 2020 personnel registers contain detailed records for 70+ employees: Examples from the register: | Code | First Name | Surname | Address | Postcode | Home Phone | Mobile | Email | Emergency Contact | |-----|-----|---------|-------|-----------------|-----------------|----------|-------|-----------| | SPAS | Sally | Spaul | 688 Park Road, Park Orchards | 3114 | 03 9812 2468 | 0412 384 709 | sally.spaul@hotmail.com | Graham Spaul (husband) | | MCNC | Cheryl | McNab | 7 Wyndarra Court, Ringwood North | 3134 | 03 9876 2780 | 0432 624 940 | — | William McNab (husband) | | HENJ | James | Henstridge | 108 Wales Street, Kingsville | 3012 | — | 0415 497 081 | james@henstridge.net.au | Fritha Aylward (partner) | | TANG | Geoff | Tanner | 15 Ruthven Street, Launching Place | 3139 | 03 5964 6056 | 0477 623 777 | ozpoolie@yahoo.com.au | Margaret Lomdahl (sister) | | GORT | Tony | Gordon | 93 Kalinda Road, Ringwood | 3134 | — | — | — | Max Gordon (brother) | | ALAM | Alana | McNab | 7 Wyndarra Court, Ringwood | 3134 | — | 0420 747 156 | alanamcnab1@gmail.com | Cheryl McNab (mother) | | SEAH | Harrison | Sealey | 9 Kirkford Drive, Mooroolbark | 3138 | — | 0499 780 390 | ksealey@jhnservices.com.au | Kristy Sealey (mother) | | BUCJ | Jane | Buckles | 5/169 Canterbury Road, Heathmont | 3135 | — | 0449 636 207 | janebuckles88@gmail.com | David Buckles (husband) | | DELR | Rebecca | Dellisola | 22 Brennan Drive, Wantirna South | 3152 | — | 0433 420 224 | freddell@bigpond.com | Fred Dellisola (husband) | | LEVR | Rona | Levi Taunuu | 49 Pembroke Road, Mooroolbark | 3138 | — | 0401 919 032 | leka levi02taunuu@hotmail.com | Ashley White (partner) | Emergency Contact Data: The "Emergency Contact Procedure" document shows the company maintains a separate register flagging employees with the notation "Medical condition exists." This includes: - Names of individuals with chronic conditions; - Consent status for disclosure to managers or first responders; - Treating doctor contact details. Vendors and Debtors (Clients): Register with Banking Information The "Vendor Errors" file contains a full register of 150+ suppliers and clients with direct access to banking details: Examples from the register: | Code | Name | Amount (AUD) | Payment Status | BSB | Account No. | Account Name | |-----|-----|-----------|-----------------|-----|-------------|-----------| | 62694 | Ha Ha Holdings Pty Ltd | 129.55 | XQ | — | — | Eric Schuenemann | | 62836 | Hall, Carli | 105.48 | DD | 633000 | 154260012 | Name: Carli Hall | | 66001 | Hammet, Derrick | 129.64 | DD | 064701 | 142958 | D & L Hammet | | 66004 | Hickman, Phillip | 8,853.70 | XQ | — | — | Phillip Hickman | | 66106 | Jones, D | 14,991.96 | DD | 807009 | 205560 | Name: David Jones | | 69977 | Groutsch, Mary | 10,220.37 | DD | 063210 | 10020475 | Mary C Groutsch | | 69989 | Coutts, Robert | 14,678.40 | DD | 633000 | 152523890 | Robert Coutts | | 66002 | Glenn Fielding, Marie | 112,019.03 | DD | 733165 | 503800 | M Scodella & GW Fielding | Medical Information Several personnel documents reference medical certificates and employer correspondence with treating physicians — for example, HR letters describing an employee's job duties and requesting a medical assessment of their capacity to work. This material includes: - Patient names (employees) - Diagnoses and work restrictions (injuries, incapacity to work) - Treating doctor contact details --- Part VI. Operational Markers Supplier Structure Payments flow to the following recipients: - Royal Australian Mint + The Perth Mint: primary sources of numismatic inventory - eBay (Domestic & International): resale channel - Gray's Auction: auction partner - UPS/DHL/Startrack: logistics - Print and packaging: EZ Printing, RA Printing, Paramount Paper Merchants Marketing and Sponsorship - V8 Supercars Australia: $15,847.17 AUD (motor racing series sponsorship) - SEN 1116 (Melbourne radio): advertising (a 2025 Partnership Proposal is visible in the contracts) - Yotpo Inc: $4,720.76 AUD (review management platform) --- Who This Is Addressed To 1. Federal financial regulators: - Australian Taxation Office (ATO) — SMSF tax audits, expense deductions - Department of Home Affairs — if funds are entering the country through unclear channels 2. Employment and labour regulators: - Fair Work Ombudsman — employee classification, minimum wage compliance, wage garnishments - WorkCover Victoria — insurance, injury history, compensation claims 3. Corporate governance and investment regulators: - ASIC (Australian Securities and Investments Commission) — ownership structure, disclosure obligations - APRA (Australian Prudential Regulation Authority) — if Downies operates any licensed financial services 4. Data protection and privacy authorities: - OAIC (Office of the Australian Information Commissioner) — Privacy Act 1988 breaches 5. Law enforcement: - AFP (Australian Federal Police) — if there are indications of money laundering - Victoria Police — local investigations - FBI (if there are connections to US persons or companies — eBay, Oracle, UPS, DHL)