Coast mum given six years’ jail for $2m Centrelink fraud

Judy Lorbek outside a Brisbane court at her last appearance.

Judy Lorbek outside a Brisbane court

A $2 million spending budget fell into a Sunshine Coast mum’s lap because a child support worker typed the date into the payment field on her computer.

Judy Lorbek phoned the Human Services Department last year to request an emergency $2900 child support payment.

The Child Support Agency staff member on the other end of the phone entered the date 02-02-2012 in the wrong field which resulted in $2,022,012 ending up in the 47-year-old’s bank account.

The cash-strapped mother of three paid off the mortgage on her Nambour home, booked in home renovations and took a contract out on a property in NSW.

Crown prosecutor Aimee Aisthorpe told Brisbane District Court on Friday that Lorbek then went on a spending spree – shouting her and her children on expensive holidays to the Gold Coast and Sydney.

She said Lorbek made 280 transactions as she lived a “profligate” lifestyle – spending money on travel, entertainment, beauty treatments, cinema trips, clothes and fashion accessories.

Lorbek had also gambled a chunk of the money away in Sydney and on the Gold and Sunshine coasts, losing $10,000 in one go at an RSL club.

She withdrew $130,000 through eftpos and $120,000 in cash in the month before authorities realised their mistake.

Lorbek withdrew the mistakenly transferred money immediately and had opened a trust account and eight other bank accounts.

Just more than $1.5 million has been recovered with $432,118 outstanding.

Ms Aisthorpe said the Commonwealth expected to recover between $350,000 and $400,000 selling Lorbek’s Nambour home.

Lorbek pleaded guilty to fraud when her case was transferred to this higher court.

The Crown has asked for her to serve two years of a six-year jail term.

Lorbek’s defence has asked for five years jail and to serve less than a third of the sentence.

Despite searching more than 300 cases, neither party were able to find comparable circumstances.

Defence barrister Michael McMillan said his client had always been “truly sorry” for stealing the money.

He said Lorbek did not oppose any confiscation of assets associated with her crime, including her Nambour home where she had raised her family since 2001.

Mr McMillan said a psychologist found his client was unlikely to reoffend in this way again.

He said Lorbek had received social security benefits since 1996 but only “plucked up courage” to complain about child support payments in 2009.

Judge Gary Long sentenced Lorbek to six years’ jail with a non-parole period of 18 months. She was ordered to pay the Commonwealth back $432,000.

Lorbek served 45 days in custody before she was released on bail.

Shock pre-nup court decision

pre-nup-non-bindingA FATHER of two from Balgowlah has been awarded up to $800,000 in damages after he successfully sued his lawyers for negligence claiming a pre-nup they created was useless in shielding his assets from a divorce.

In a Supreme Court decision handed down today, Daniel Schacht, won the case against his former lawyers Bruce Lockhart Thompson and Dennis Michael Staunton, trading as Staunton & Thompson Lawyers.

The pre-nup was drawn up by Andrew Corish, who worked for the firm in January 2002. Mr Corish was consulted a second time about the pre-nup in March 2004 after Mr Schacht and his wife Claudia Dieziger bought the Balgowlah home, the court heard.

The pre-nup was altered, to allow Mr Schacht to give his wife a 15 per cent interest in the property.

When Mr Schacht divorced Ms Dieziger five years later he found out the pre-nup was worthless.

The pre-nup was drafted to give Ms Dieziger a cash payment for each child she had. She had two children during the marriage.

As part of their divorce a Federal Magistrate found the pre-nup was “not binding” since it didn’t comply with the Family Law Act 1975.

Mr Schacht ended up having to pay his wife $496,000 more in a property settlement following his divorce than he had originally agreed to pay in the pre-nup.

He sued his former lawyers, Staunton & Thompson, claiming they should pay him damages for the loss and damage caused by the worthless pre-nup.

Together with interest and the legal costs from a Family Court divorce case, Mr Schacht claims he is owed $800,000.

Mr Schacht’s lawyer in the successful damages suit, James Riley, principal at Riley Gray-Spencer Lawyers said the decision was an important one for couples considering marriage.

“They need to go to a family law specialist and ensure that the specialist drafts an agreement in accordance with the Act,” Mr Riley said.

Family law experts say pre-nups are fraught with danger for solicitors who draft them as the legislation demands lawyers meticulously follow a set of precise steps.

Supreme Court judge Peter Johnson found that the alterations to the pre-nup in 2004 had meant it was not binding.

He accepted the evidence given by Family Law expert Duncan Holmes who told the court that a “prudent” Family Law solicitor would have not just amended the pre-nup in 2004 but would have scrapped the 2002 version and started again.

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What to be aware of before entering a Pre-nup

PrenupAgainst all odds you have found each other, you are in love and know without a shadow of a doubt that you want to spend the rest of your lives together.

The proposal was perfect, the ring made all your friends “oooh and ahhh” and all you can think about is planning the big day –  until you are asked the other question … “Honey, will you sign my pre-nup?”

Today, about one in 10 Australian couples opt for a pre-nuptial agreement before saying “I do”.

Maybe that’s not surprising considering 30 per cent of all first marriages end in divorce according to the Australian Bureau of Statistics.

So what should you do and what you should know if your partner asks you to sign a pre-nup? What are your legal rights and what does it mean for your future?

In Australia a pre-nup is simply a binding financial agreement that sits under the Family Law Act.  It’s a legal contract that can be entered into by married couples, same-sex couples and those in de facto relationships.

It is an agreement between both parties that requires full disclosure of their financial position and assets at the time, and is designed to provide certainty to both parties before entering into marriage or a long-term relationship.

Paul Hunt from e.law Legal Services lists the top five things you should be aware of before entering into one.

1. There must not be any coercion or pressure from the asking party or their families. It is illegal to force any individual into a pre-nup under duress.  A pre-nup must be entered into willingly by both parties.

2. Each party must seek independent legal representation and advice. A pre-nup cannot be created for a couple by the same legal practitioner.

3. A pre-nup must be drafted by an Australian lawyer. Any agreements designed by legal professionals who are not registered practitioners in Australia will be inadmissible under the Australian Family Law Act.

4. A pre-nup must be fair and reasonable for both parties and both should feel as though they can specify certain clauses, such as future children, pre-nup validity after a certain number of years of marriage or being together and what each party contributes during the marriage or relationship.

5. If at any stage the process doesn’t feel right, don’t do it!

It’s going to be easier if both parties have communicated in-depth about what they feel is fair and reasonable.

A trip to the lawyer can be an expensive exercise. If the party being asked to sign the pre-nup is not in a financial position to pay for these negotiations, they have every right to ask the other party to cover their costs.

Honest discussions should take place about the emotional impact of signing an agreement like this. For many people, the idea of being asked to sign a pre-nup raises questions of loyalty and trust.

You have every reason to ask why, and deserve to be provided with a valid answer that eradicates all doubt.

Hunt adds: “Before seeing a lawyer both parties should agree on what they are and aren’t comfortable with, which ultimately will keep down the costs if both have agreed on what they think is fair as opposed to the lawyers arguing it out.”

This raises a valid issue … communication, which is the key to any long and happy relationship or marriage.

After all, if you can’t openly communicate before agreeing to a long-term commitment or marriage, then it isn’t really going to work.

Apart from the emotional and financial implications of setting them up, there are questions surrounding the validity of pre-nups.

Says  Hunt: “While a pre-nup is a binding agreement that is enforceable, it can be undone. While that can be a costly exercise, a pre-nup is really a planned process of dealing with financial issues and assets if there is a breakdown, in the hope of avoiding costly court battles in the future.”

Is a pre-nup just a necessity of modern life or a passion killer?

Does it undermine the romantic notion that love will conquer all or is it just a reality that is required in a life where there is so much uncertainty?

If we fail to plan, are we planning to fail?

Gay adoption laws pass Lower House

baby-handTasmania’s Lower House has passed laws making it easier for same sex couples to adopt.

The amendment to the Adoption Act allows gay men and women to adopt a child who is not a relative.

The change passed with the support of 18 members, including Liberal MP’s Peter Gutwein, Jeremy Rockliff, Matthew Groom and Adam Brooks.

The Greens Leader Nick McKim told Parliament it raises questions about why the Opposition did not allow a conscience vote on gay marriage last year.

“What we have here is a double standard which exposes the Liberal Party’s position on marriage equality as being driven by politics, not doing what is right,” he said.

Liberal MP Rene Hidding says the Opposition applied the same party room process to both bills.

“Precisely the same took place on this debate in the party room as took place on the previous, on the marriage one and to stand up here, to whinge and whine and to reflect on a previous vote on legislation that’s not before this house today just shows who’s really being political about this,” he said.

Gay rights activists have welcomed the bill, which will now go to the Upper House.

Cost of raising a child

Cost-of-Raising-a-ChildHOBART has been ranked as Australia’s fourth most affordable city in which to raise children.

The cost of raising a first child to the age of 18 in Hobart is just over a quarter of a million dollars, or $268,629, according to the only state-by-state breakdown of the cost of kids in Australia.

This was below the national average of $276,445.

Childcare is by far the biggest cost for parents.

Full-time working parents in Hobart will shell out $85,795 for childcare, even taking into account subsidies.

Food is the second-biggest expense.A healthy diet, including some takeaway food but no restaurant meals adds up to $57,956.

Housing costs are also a big item, costing $49,608 extra to move to a house with one more bedroom.

The research, by associate professor Paul Henman of the School of Social Work and Human Services at the University of Queensland, uses a “budget standards” approach.

Dr Henman’s work has been used by the Federal Government to set child support payments.

Rather than tracking what parents actually spend on their children, it measures the changing cost of providing a “modest but adequate” upbringing for a child representing “middle Australia”.

“There is no fixed or absolute cost of a child,” Dr Henman told the Sunday Tasmanian.

“Costs of children estimates using this approach measure what is needed to be spent to meet community standards, rather than what can be afforded.”

Generally, second and third children cost less, Dr Henman said.

“The cost of the first child is often greater than that for each subsequent child. This is due to economies of scale resulting from hand-me-downs and shared infrastructure.”

The survey does not include spending on private school fees, private health insurance, the lost income of parents from not working, or costs incurred after age 18, like university or paying for weddings.

Tasmanian mum Amanda Crane said $260,000 to raise a child was not a shock.

“I’m not surprised it’s more than a quarter of a million dollars I’d easily believe that. I would have actually expected the cost be even more,” the hospitality worker said yesterday.

Her partner, David Goodfellow, is a fly-in-fly-out shipmaster and said the cost of basic everyday items like clothing and food also kept costs up.

They agreed education will be the biggest cost in raising children with the increased reliance on technology.

“Whether you like it or not, your child needs to have access to a computer. And it doesn’t stop there, kids expect more and more to have gadgets like iPods and iPads too,” Ms Crane said.

“We would like to send them to private schools, and they will need to board, which is extra cost too.”

Dr Henman says in reality, parents are spending more on their kids because they can.

“The cost of raising a child increases with household income. Higher-income households have greater living standards, which children share.”

Even so, the basic costs add up.

In their first 18 years, raising a child in Hobart will cost $6739 in trips to the dentist and pharmaceutical drugs.

Toys, books and a one-week domestic holiday each year will cost $15,355.

Even personal-care items such as shampoo, toothbrushes and haircuts add up to $6447.

Having a child adds an extra $7404 to electricity and gas bills.

Petrol costs and having to upgrade to a bigger car can also add up to $3939.

Female binge drinking leading to court hangover

Heather-McKinnon

Heather McKinnon

A growing trend of alcohol abuse by Australian women is behind an increase in divorces and other family disputes before the courts, the head of Slater & Gordon’s family law practice has claimed.

Heather McKinnon told Lawyers Weekly that she has witnessed a shift in the drinking habits of women in Australia, which she believes is responsible for a growing number of child custody and divorce cases in the Family Court.

Research released in February by the National Drug and Alcohol Research Centre (NDARC) at the University of NSW revealed that women are drinking earlier and more are developing symptoms of alcohol abuse. The study found that the number of Australian women aged 20 to 29 with symptoms of alcohol abuse has increased by 27,000 in 10 years, and males and females now typically have their first drink at the same age (just over 14), compared to female baby boomers who had their first drink at 17.

McKinnon said a rise in binge drinking by young women is particularly worrying, as it often continues into marriages and motherhood and “rears its head regularly in the family court”.

“More women go from high school binge drinking and then enter relationships and start having kids but have normalised a high level of alcohol abuse,” she said, adding that she currently has four cases on the go that involve mothers who are alcohol dependent.

McKinnon said there were “a lot of home truths” in comments made by her English counterpart, Amanda McAlister, who told the Daily Mail this week that the number of divorces blamed on women’s drinking habits has risen by 70 per cent in five years.

“One of the biggest things we’ve seen [in Australia] over the past five years is the number of women who are alcohol dependent,” ­said McKinnon.

“Traditionally, the only time you saw mums lose kids because of alcohol was really serious cases where the child welfare authority intervened … but now it is increasingly common in the family court for dad’s to apply for children to live with them because mum is alcohol dependent.”

Domestic violence shelter offered for pets

safe-beds-for-petsTasmania’s RSPCA has started looking after the pets of families affected by domestic violence.

The animal welfare body has adopted a program allowing organisations which help domestic violence victims to arrange temporary accommodation.

They will arrange shelter for up to two weeks or longer.

The RSPCA’s Lorraine Hamilton says it is common for pets to be abused when they are left behind in a violent home.

She says the service will offer some peace of mind to owners.

“We know of cases where animals have been used almost as a pawn in the middle, if you like, where one partner might threaten to harm the animal really just to get at the other partner,” she said.

“They certainly can’t fend for themselves so we need to offer that help to them.”

The state’s three shelters have adopted the New South Wales program called Safe Beds for Pets.

Dirty Tricks in the Business of Winning Family Law Battles

10-dirty-divorce-tricksAs the sun went down on a remote property in NSW, a private investigator peered through the window of a storage shed and spied his target. Exposed in the afternoon light was about $400,000 of farm machinery – assets the home owner swore he had sold, before gambling away the profits. Click. The private investigator’s client had an interest in those assets. She was the home owner’s wife.

In the game of stealth to which the couple’s relationship had descended, each was now plotting to maximise their outcome from the property dispute. He was squirrelling away goods, and she was having him shadowed. Extraordinarily, in family law circles their tactics are viewed as run of the mill.

Private investigators, secret tapes, the hacking of social media pages and the manipulation of children – nothing is above litigants in the highly charged atmosphere of divorce and custody proceedings in the Family Court.

”It brings out the worst in people,” says family lawyer Deborah Searle. ”Very occasionally it brings out the best in people, but not often.”

Searle has been in the game for 25 years, which is longer than most lawyers can handle family law before the emotional disrepair of their clients starts to suffocate them.

They deal extensively with litigants who are bitter and spent, and only briefly with those who have resolved their differences amicably.

Most of the time when couples employ dirty tactics, it is met with eye rolling among family lawyers, who have nothing to gain and stand to be penalised if their clients are caught breaking the law.

”Mostly they hide money and assets,” Searle says. ”And they think they’re the first to think of it. We all have a laugh about that one.” The women hide it in their sister’s account. ”The men think they’re a lot cleverer than that. They hide it in property in someone else’s name and think we’ll never find it. It comes out.”

One case recalled by family law solicitor Max Meyer involved a wealthy man with an offshore bank account in Fiji who claimed the account belonged to his mate. The pretence backfired when, after the case had concluded, the friend claimed he was entitled to keep the money because it had been sworn to him under oath. The man then had to return to court and confess to perjury so he could at least retain a portion of the money, even if it had to be shared with his wife.

The women hide it in their sister’s account. ”The men think they’re a lot cleverer than that. They hide it in property in someone else’s name and think we’ll never find it. It comes out.”

”Sometimes after separation people will go out and buy a new car, because the minute they buy it, it loses half its value, so their wealth is spent in a more enjoyable way [than spousal maintenance],” Meyer says. ”It’s petty, of course it is. But we only see the worst examples. People who work things out for themselves, we don’t see.”

Private investigators are common. Searle has engaged them on her clients’ behalf when she is looking for something specific. She arranged the private investigator who knew exactly where to find the farm machinery. But often clients engage them on a speculative basis. ”Drink-driving with the kids in the car, the boyfriend she claims she doesn’t have … they’re hoping something useful turns up,” Searle says.

Private investigator Guy Oakley has worked on ”many, many, many” such cases, and although he often turns up misconduct on the part of his surveillance subject, often the indictment is on his client. He helped one woman retain primary care of her child by confirming that her ex-partner was out taking heroin while the child was staying with him. But on another occasion, Oakley was able to demonstrate to his client that his wife was not having an affair with the son of a Fijian tribal chief, but merely looking for a holiday from their unhappy marriage.

”I was able to go back and say, ‘You’re just so paranoid it’s driving her out the door’,” Oakley said. ”A year later their marriage was back together and it was fantastic.”

Such upbraiding advice is a luxury the Family Court does not have. The couples that come to the Family Court and play out the miserable remnants of their relationships have exhausted all other options, and seek the clean certainty of the law. They are destined to be disappointed.

”Family law is different to other areas of the law in that it attempts to effectively legislate what are really personal relationships, and people really struggle to accept the boundaries that the law imposes,” family lawyer Paul Doolan says.

”There’s a lot of bad behaviour in personal relationships that just continues when the relationship breaks down. While they’re not common, we do see a lot of instances of people hacking email accounts, of opening mail, of recording personal conversations, recording telephone calls, hiring private investigators and of attaching GPS trackers to cars.”

The evidence collected under such circumstances is often deemed inadmissable, but even in circumstances where it is accepted it is viewed dimly by judges. Federal Magistrate John Coker said in a judgment published in January that a woman’s secret recording of her ex-partner disparaging her reflected more poorly upon her. ”It would seem, clearly, to be an evidence-gathering exercise and one that, in my view at least … gives rise to serious concerns as to the behaviours of the party who records such evidence,” he said.

The low regard in which judges hold such evidence was most spectacularly illustrated in a case in which the female litigant – dubbed Ms Langmeil by the court – tendered a DVD that she said contained proof ”beyond doubt” that her ex-partner had molested their children. In a jurisdiction bedevilled by the self-destructive impulses of its litigants, Langmeil’s application was a classic own goal, which saw the court strip her of the primary care of the children. She had installed secret cameras in the matrimonial home and recorded 100 minutes of footage of herself with the children.

…we do see a lot of instances of people hacking email accounts, of opening mail, of recording personal conversations, recording telephone calls, hiring private investigators and of attaching GPS trackers to cars.”

Justice Graham Bell concluded, as a result of that and other evidence, that Langmeil’s ”unjustified, bizarre and delusional” allegations against the children’s father was destroying their relationship with him. ”I did not see anything untoward in the conduct of the children save that I thought the mother exhibited a total lack of control and discipline over the children … These DVDs in my opinion have strengthened the case of the father enormously.” One of the family consultants engaged for the trial said Langmeil’s actions amounted to child abuse.

Since the couple’s 2008 split she has tipped the arsenal of weapons available to family litigants at her hapless ex-husband – false accusations of sex abuse, the coaching of child witnesses and secretly taped conversations. The Family Court has delivered 14 judgments in relation to her applications, and she is now required to get permission before she can make another. Earlier this month, the full bench of the Family Court denied her such permission.

Langmeil exemplifies the inability of some family litigants to accept the court’s decision, but she is also an extreme demonstration of how children are manipulated to further their parents’ ends.

Family lawyers refer to the ”Disneyland dad” who has all the money and all the fun with the children on the weekends, while his ex-wife does the weekday drudgery. Aside from the personal kicks, some parents woo the children in this way to enhance their image before the judges. It also improves their chances of being awarded ”shared care”, which means at least 128 nights with the children. From that point on, the number of nights that the children spend with that parent reduces the amount of child support that they have to pay and may strengthen their hand in making a claim on the family home.

”The percentage of time spent caring for the kids will also impact on a property settlement, so a cynical approach would maximise the percentage of time in the orders sought to get the advantage and suddenly losing interest in having the kids thereafter,” Searle says.

”The child support would be altered to reflect the reality but the property orders have already been made and would not change.”

Other parents try to disrupt their children’s relationship with their ex-partner to achieve primary care responsibility. Meyer has been involved in cases where the mother shadows the father’s family excursions, sitting two rows behind them at the football, for example. In one case, the mother rang her daughter and asked if she could come along to a dinner that her ex-husband had organised with the children and his new partner, placing the child in the awkward position of having to turn her down.

”If they behave so badly that the children are alienated from the father, the court is faced with a terrible dilemma,” Meyer says. ”Sometimes the only thing the judge can do is say, ‘Well, the damage is done. I can’t send this child to their father because they’ve been so poisoned by their mother. They’re not going to see him at all’. That’s when your personal morality is outraged, but the interests of the child are the primary consideration and the court has to focus on that.”

Parents of disabled want more flexibility to hysterectomy ban

Australian Human Rights CommissionParents of women with severe disabilities are being forced to take their daughters overseas for hysterectomies after their requests for the procedure were denied in Australia, a leading endocrinologist has told an inquiry into involuntary sterilisation.

John Carter, the father of a 31-year-old daughter with a moderately severe intellectual disability, said laws on sterilisation can place an unfair burden on people with disability and their families.

”We are aware of instances where parents have taken their daughters to Thailand or New Zealand to have a hysterectomy because their request to have a hysterectomy performed in Australia was rejected by the Guardianship Tribunal,” he wrote in his submission to the Senate inquiry into involuntary or coerced sterilisation of people with disabilities in Australia.

”For a country that is allegedly as caring and compassionate as Australia, to have citizens undertaking such trips strongly suggests that the current situation is far from ideal and we believe that significantly greater flexibility needs to be demonstrated in our legal system and by bodies such as the Guardianship Tribunal when deliberating on applications.”

Dr Carter and his family appeared at the inquiry’s public hearings in Sydney on Wednesday.

The inquiry also heard a submission from the mother of a woman with a severe intellectual disability who argued that her daughter has the same rights as her sisters. ”As such, the notion of sterilisation for her is as irksome, and unwarranted, as it would be for her siblings,” she wrote in her submission.

A mother of a 16-year-old said her daughter had the mental age of a three-year-old and was unable to make an informed decision about her fertility. ”As a mother of a disabled person I make the decisions that she cannot,” she wrote. ”Therefore this decision should include the input of the one person who cares for her every need in life. It’s not about me, but about enabling me to provide the best support possible for my scared and overwhelmed daughter.”

The Australian Human Rights Commission recommends that sterilisation of children without their consent be criminalised along with the taking of a disabled child overseas with the intention of having them sterilised. The United Nations considers involuntary sterilisation a form of torture and an act of violence against children.

The hearings continue with the inquiry due to report on June 19.

Declaration made where the relationship occurred from “time to time” over a long period

holding-handsThe Supreme Court of South Australia has made a declaration that a relationship existed between the plaintiff and a deceased person (referred to as K) entitling the plaintiff to make a claim for provision out of K’s estate in circumstances where they were in a sexual relationship “from time to time” over a lengthy period.

The plaintiff and K lived together in a sexual relationship from time to time over a period of about 38 years. Prior to meeting K, the plaintiff had two relationships with women, and had a child from each relationship. The plaintiff married three further times during the period he knew K. According to the plaintiff, he maintained a relationship with K throughout each marriage.

The plaintiff sought a declaration pursuant to the Family Relationships Act 1975 (FRA) that he and K were, on a given date, domestic partners and, if such a declaration was granted, an order for provision out of the estate of K.

During the proceedings, the parties reached a compromise and sought a declaration that the plaintiff and K were in a relationship from 1 February 1992 until 1 December 1996.

Despite the declaration sought by the parties, the court made it clear that it had to be satisfied that the plaintiff was entitled to the declaration sought and, if made, that he was entitled to the provision out of the estate contemplated by the parties. Accordingly, it was not a matter of simply making consent orders as the court had to be independently satisfied that the plaintiff came within the provisions of each statute.

Despite finding that the required relationship for a declaration did not exist at the date of K’s death or at an earlier time, the court considered whether it was in the interests of justice that a declaration be made. The court referred to the nature of the relationship between the plaintiff and K over the period and noted that there were significant periods during which it could be said that they lived together in a close personal relationship, namely during the periods they lived together (February 1973 to April 1974, August 1985 to January 1987 and January 1989 to March 1990).

The court found there was a mutual friendship, including a sexual relationship, which manifested itself often from 1973 to 2011. The court also noted that the plaintiff looked after K when he was unwell.

Another factor which counted “very much” in the plaintiff’s favour was that the defendants, in anticipation of a declaration being made, settled the plaintiff’s claim.

In all the circumstances, the court found it was in the interests of justice to make a declaration that there existed between the plaintiff and K the required relationship entitling the plaintiff to make a claim out of K’s estate.

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