Kelvyn Kit Wing Chong and his business Success Australia were convicted of two offences under the Planning and Development Act in Mandurah Magistrates Court.
According to Supreme Court transcripts, the City of Mandurah planning manager attended the premises on January 24, 2012 accompanied by two detectives.
Despite previous warnings that beds were not allowed under planning approvals, there were still double beds at the premises.
‘A female receptionist was in one of the double bedrooms,’ the court transcript stated. ‘A female was in bed in one of the other double bedrooms.
‘An additional double bed was seen in one of the other massage rooms.
‘The rooms also showed signs of occupation, including bedding, personal hygiene matters, toiletries, suitcases and clothing on the floor.’
Mr Chong and Success Australia appealed the convictions on the basis the magistrate refused a third trial adjournment and Mr Chong was convicted in his absence. But the appeal was dismissed in the Supreme Court on December 18.
Mr Chong and his business also appealed the sentence as being manifestly excessive.
Justice James Edelman found the financial penalty imposed on Mr Chong was excessive for a first offence, ‘which effectively consisted of a failure to ensure that his instructions to the licensee to remove beds were followed’.
Justice Edelman also found Mr Chong had limited income and assets.
The fine to Success Australia was upheld, but Mr Chong was re-sentenced to a penalty of $5000.