Guy Sebastian's manager found not guilty of four counts jury returns partial verdict
Titus Emanuel Day stood trial in the NSW District Court where he battled allegations he embezzled more than $600,000 in royalties and performance fees from the Australian Idol winner between 2013 and 2020.
Since his arrest more than five years ago, Day has denied the allegations and he pleaded not guilty to 34 counts of embezzlement as a clerk or servant.
He also pleaded not guilty to one count of attempting to dishonestly obtain financial advantage by deception.
On Tuesday, the jury returned verdicts finding Day not guilty of four counts of embezzlement.
Those four counts related to allegations that he embezzled over $113,000 worth of Mr Sebastian's performance fees relating to a Big Bash game, a wedding, a corporate gig for Harvey Norman and an ambassadorship with Dreamworld.
The jury on Tuesday rejected the Crown prosecution's version of events relating to those counts.
They have been told to continue to deliberate on the remaining 31 counts.
Mr Day stood trial accused of embezzling over $620,000 in performance fees and royalties by failing to remit the money to Mr Sebastian.
Mr Day maintained that some accounting errors were the result of family difficulties at the time which resulted in his attention being elsewhere, and a mistaken belief that some of the money that came into his company's account for Mr Sebastian related to another client.
He also held a view that the former Australian Idol winner owed him unpaid commissions, his barrister Thomas Woods told the court during the trial.
Mr Woods also told the court that performance fees from the Swift tour were used to purchase shares on Mr Sebastian's behalf.
'It is not implausible that my client made a wrong assumption in relation to these counts in the indictment … That he made a mistake is not fanciful or far fetched,' Mr Woods told the jury.
During his closing address to the jury, Crown prosecutor Brett Hatfield SC said Mr Day had fabricated invoices to demand payment from Mr Sebastian.
Mr Day denied having fabricated the documents and his barrister Thomas Woods argued the allegation could not be proven and was 'fanciful'.
Mr Sebastian first worked with Day while he was with his former talent agency, 22 Management.
Mr Sebastian agreed to follow him as a marquee client when Day created his own agency, 6 Degrees Management, in 2009.
The court heard that Mr Sebastian was Day's long-time client and friend, however they had a bitter falling out in 2017 after Mr Sebastian raised questions over financial records.
Mr Sebastian during his evidence told the court he was happy with Mr Day's management when he first moved into his stable.
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