SYDNEY, NSW, Australia - Two Irish nationals are among three business partners facing criminal proceedings in Australia after being accused of siphoning more than $180,000 in charitable funds meant for the Sydney Children's Hospital Foundation.

Patrick Kelleher, and his wife Lisa Kelleher, both originally from Ireland, along with their business partner James Keogh, are being prosecuted by NSW Fair Trading officers following an investigation into their company, Ace Competitions Ltd.

According to reports from Sydney's The Daily Telegraph, criminal proceedings have been lodged under the Community Gaming Act, with authorities alleging the trio misappropriated funds raised through online raffles that offered luxury vehicles, high-end holidays, and cash prizes.

Mr Keogh faces three charges of converting money raised through gaming activities to his own use, relating to a total of $120,000. Patrick Kelleher faces one charge concerning $50,000, while Ms Kelleher faces a charge relating to $17,500.

NSW Fair Trading representatives have stated that if found guilty in the Local Court, the maximum penalty for each charge is imprisonment for two years or a fine of 100 penalty units.

The investigation revealed that the company, which also operated under the name Ace Premium on social media, advertised itself as a "proud sponsor of the Sydney Children's Hospital Foundation" while running giveaways that included exotic cars, Louis Vuitton products, and cash prizes.

NSW Fair Trading Commissioner, Natasha Mann, confirmed the source of the prosecution to The Daily Telegraph.

"It is alleged that over $180,000 of funds raised for the Sydney Children's Hospitals Foundation have been converted for personal use," Commissioner Mann said. "No further comment will be made while the proceedings are before the Court."

Fair Trading Minister Anoulack Chanthivong did not hold back in his condemnation of the allegations, describing the actions as "despicable."

"The NSW Government strongly condemns any attempts to manipulate and deceive consumers by targeting vulnerable members of our community," Mr Chanthivong told The Daily Telegraph. "This prosecution shows that NSW Fair Trading takes its consumer protection role seriously and will take enforcement action when needed."

A representative for the Sydney Children's Hospital Foundation said the organisation "welcomed" the investigation but declined to comment further while the matter is before the courts.