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National
By Mazoe Ford

Former Eels boss suffered 'tremendous toll' after admitting to fraud

Solicitor John Sutton said Scott Seward (right) brought the club's debts to police.

Former Parramatta Eels chief executive Scott Seward has become a "shell of his former self" since fraud charges were laid against him in relation to the club's salary cap breach, a Sydney court has heard.

Seward has appeared before a sentencing hearing in the Downing Centre Local Court for his role in the scandal.

The 41-year-old pleaded guilty in May to dishonestly obtaining a financial advantage by deception.

Seward was chief executive of the Eels between September 2013 and June 2015, during which time the club was accused of systematically cheating the NRL salary cap by way of third-party payments.

An investigation revealed the club had hidden payments and issued inflated invoices from suppliers to raise cash that was then paid to players.

The NRL fined the Eels $750,000 and stripped them of 12 competition points in 2016.

Seward 'brought the matter to police'

At today's sentencing hearing, Seward's solicitor, John Sutton, told the court that when his client took over the club's top job, he inherited a considerable amounts of debt to pay and was put under great pressure to pay it.

He said his client's conscience "eventually got the better of him" so he resigned from the club, then alerted the NRL's integrity unit and police about the salary cap breach.

"He couldn't live with the fact that he's been engaged in this conduct and he brought the matter to police attention," Mr Sutton told the court.

"If he kept his mouth shut, if he had not brought it to the attention of authorities it would not have been known."

Mr Sutton said the former CEO never made any money from the hidden payments and inflated invoices.

"There was never at any stage any benefit to my client, [the money] all went to players or player managers," Mr Sutton said.

Court hears Seward suffered 'tremendous toll'

Mr Sutton added that the fallout has taken a "tremendous toll" on Mr Seward's mental health and has also cost him professionally.

He said a reference from a former colleague describes his client as a "happy-go-lucky man who was pushed to a shell of his former self".

"This has cost him everything ... he currently has casual work with a retailer and it is certainly nothing like in the field he was used to with the remuneration and rewards he was used to," Mr Sutton said.

Prosecutor Renata Sala told the court a prison sentence would normally be appropriate for a fraud matter such as this.

"He chose to keep his well-paying job, a prestigious role, and has received an indirect financial benefit," Ms Sala said.

"There is a need for a general deterrent [because] those in well-paying, high-powered positions of power should be aware that criminal behaviour is not acceptable to the community."

However, she added that Mr Seward's early guilty plea, the fact he was helping police with their investigation, and the fact that he alerted them to the salary cap breach in the first place should qualify him for a discounted sentence.

Deputy chief magistrate Christopher O'Brien will sentence Mr Seward next week.

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