Richard J. Pratt (born Ryszard Przecicki, 10 December 1934 – 28 April 2009)^[1][2] was a prominent Australian businessman, chairman of the privately owned company Visy Industries, and a leading figure of Melbourne society. In the year before his death Pratt was Australia's fourth richest person, with a personal fortune was valued at A$5.48 billion dollars.^[3] Pratt was appointed an Officer, of the Order of Australia, however he returned his awards in February 2008 after he was fined $36 million for price fixing.^[4][5]

[edit] Early life

Pratt was born in the city of Gdańsk of ethnic Polish Jewish parents on 10 December 1934.^[1] His family emigrated in 1938 and settled in Shepparton, Victoria, changing their surname from Przecicki to Pratt. Pratt was educated at Grahamvale Primary School, Shepparton High School and University High School and enrolled in a Bachelor of Commerce degree at the University of Melbourne in 1953.^[6] He also played Australian rules football for Carlton in the Victorian Football League's under-19s competition. He was awarded the Morrish Medal in 1953 for being deemed the "best and fairest" U-19 player that year.^[7] Pratt never continued his footballing career to senior VFL level, however, instead focusing on other interests.

Pratt combined study with acting and working as salesman for the family business, Visy Board. After touring London and New York with a production of Ray Lawler's Summer of the Seventeenth Doll, he returned to Melbourne and Visy. Following the death of his father Leon in February 1969 Pratt took over his father's business, which at that time had several hundred employees and an annual turnover of AU$5 million.^[8]

[edit] Business career

Under Pratt’s direction, Visy expanded from two factories in Melbourne to more than 55 plants across Australia, U.S., New Zealand, and Papua New Guinea. From cardboard boxes and packaging, Visy moved into waste paper recycling. Later in the 1990s Pratt expanded his operations considerably into the New York waste paper business.

In 1993 the National Crime Authority (NCA) raided Pratt's offices in connection with an investigation into businessman John Elliott's foreign exchange dealings and his spoiling domestic stake in BHP while his Elders IXL was insolvent.^{[9][dead link]} The following year, however, the NCA paid costs and returned documents seized.

Also in the 1990s Visy was ordered by the ACCC to pay a half million dollar fine for illegal anti-competitive behaviour.^[10]

On 16 May 2007, he was awarded the Woodrow Wilson Medal for Corporate Citizenship.^[11] This is given to is executives who,

...by their examples and their business practices, have shown a deep concern for the common good beyond the bottom line. They are at the forefront of the idea that private firms should be good citizens in their own neighborhoods and in the world at large^[11]

[edit] Public career

As well as his business interests, Pratt was known for his involvement in public service, having held posts including: foundation chancellor of Swinburne University of Technology, president of the Victorian Arts Centre Trust, and Chairman of the Board of Management of the Mental Health Research Institute of Victoria.

Through the Pratt Foundation, the Pratt family are among Australia's leading philanthropists donating up to $10 million AUD a year. Pratt was named Environmental Visionary of the Year in 1998 by the Keep Australia Beautiful Campaign. Pratt received the AO, Officer of the Order of Australia, in 1985 and the AC, Companion of the Order of Australia in 1998, Australia's highest honour. His wife, Jeanne, is also an AC recipient.

On 8 February 2007, he was appointed president of the Carlton Football Club. On 20 June 2008 the Carlton Football Club announced that Richard Pratt would stand aside from the club until the charges of giving false and misleading evidence to an Australian Competition and Consumer Commission hearing are resolved.^[12]

Pratt also donated considerable funds to both major political parties (for example $300,000 AUD in Financial Year 2003-4),^[13] as well as to former Australian Prime Minister John Howard's Liberal government.^[14] In 1996 an investigation by The Australian newspaper documented from internal company documents that Pratt maintained a multi-million-dollar network of advisors.^{[9][dead link]} This included $8333.33 a month fee to Bob Hawke for consultation on "Asian and government matters", $27,220.03 for travel to the US for Gough Whitlam as business adviser on overseas markets and other sums for former state premiers Nick Greiner and Rupert Hamer.^{[9][dead link]}

[edit] Personal life

Richard Pratt was married to Jeanne Pratt (née Lasker) for nearly 50 years. After the success of Visy Industries, They enjoyed a lavish lifestyle, with a private jet and a range of apartments, including a penthouse at the Sherry-Netherland Hotel in New York City^[15]; their main home was the historic mansion Raheen, in the Melbourne suburb of Kew^{[9][dead link]}, the former residence of Roman Catholic Archbishop Daniel Mannix^[15]. The Pratts had three grown children, Anthony, Heloise and Fiona.

Another daughter, Paula, was born in 1997 to his long-term mistress, Sydney socialite Shari-Lea Hitchcock.^[16] In 2000 this affair became the subject of widespread media attention owing to a court case involving Ms Hitchcock and a nanny hired to look after her daughter. At the time, Mr Pratt was accused of trying to pay hush money to the nanny who had launched legal action against Ms Hitchcock.^[17]

Richard Pratt died at his Kew residence after a well-publicised battle with prostate cancer, on 28 April 2009 ^[2], the day after all charges against him had been dropped due to his ill-health.

[edit] Philanthropy

He donated $10 million every year through the Pratt Foundation to refugees, artists and others. [2]

[edit] Conviction for price fixing

In December 2005 the ACCC commenced a civil penalty proceeding against Visy companies, Pratt and others for alleged involvement in a cartel in the packaging industry.^[9][18]

On 10 October 2007, Richard Pratt was formally accused of price fixing, cheating customers and companies out of approximately AUD $700 million in the nation's biggest ever cartel case.^[19] The ACCC alleged "very serious contraventions" of the law and that these had been "carefully and deliberately concealed" by Visy senior executives.^[20] The ACCC counsel further stated:

"There can be no suggestion that Visy acted in ignorance of its obligations under the act,"^[21]

and further added that the deliberate use of pre-paid mobile phones that could not be traced and the holding of meetings in private homes, motel rooms and suburban parks

"...provides a strong indication that Visy was fully aware that the conduct was illegal".^[21]

After more than a year of denials Pratt subsequently admitted his guilt, acknowledging he and his company VISY, and "rival" company Amcor deliberately broke the law.^[22] Pratt was aggrieved by the criminal prosecution and its effect on his reputation, stating:

"I feel very angry -- Visy is seen as Richard Pratt's company -- there is a certain amount of character assassination for me personally because I am a tall poppy in the community; it's a big scalp (for the ACCC). My reputation is something I have been building for 50 years and so I am worried that the general public will now see me as a rich person who has made his money doing something that is wrong in the eyes of the law."^[22]

On 2 November 2007, Pratt and the Visy group received a A$36 million fine, representing both the largest fine in Australian history and an estimated 0.75% of the Pratt fortune.^[10][23][24] Federal Court judge Justice Heerey said Mr Pratt and his senior executives were knowingly concerned in the cartel, which involved price fixing and market sharing.^[23]

"This is the worst cartel to come before the courts in 30-plus years, Justice Heerey said.

Additionally customers of Visy have initiated claims against Visy and Amcor, including a $120 million suit by Cadbury Schweppes against Amcor.^[10]

[edit] Criminal prosecution for impropriety

On 19 June 2008, Pratt was charged with lying about his knowledge of a price-fixing scandal.^[25] Mr Pratt had been facing four separate charges under Section 5 of the Act, the penalty for each charge ranges from a fine of $2200 to 12 months' jail.^{[citation needed]}

On 27 April 2009, this criminal prosecution of Pratt for charges of impropriety (lying to the ACCC during its successful investigation into the Visy/Amcor price fixing scandal) were abandoned on account of his poor health and impending death. However, Commonwealth Prosecutor Mark Dean SC told the Federal Court the CDPP believed the prosecution would have succeeded.^[26] Pratt died the following day.

[edit] References

[edit] External links

• "Some Inspirational People" Profiled by Laurence MacDonald Muir.