The revelation raises questions for the AFL, Mr Fitzpatrick and Mr Demetriou about why the resources of the league - one of Victoria's most powerful organisations - were used to assist the private business affairs of Mr Fitzpatrick, who is in London for the Rio Tinto board meeting, and Mr Demetriou, who recently joined James Packer's Crown Resorts. Victorian government figures are understood to have been surprised to see AFL resources used in such a fashion. In response to questions from Fairfax Media, Mr Fitzpatrick said: "An email about a personal investment of mine shouldn't have gone out from an AFL email address. I wasn't aware that had happened until it was pointed out to me by you. It should have been sent from a private email address just to be completely clear that the issue we were dealing with had nothing at all to do with AFL matters." The email was written and sent by recently departed AFL government relations executive Phil Martin, who was previously chief of staff to former Labor deputy premier, John Thwaites. Mr Martin became involved after learning of Creswick Quartz's concern about not being able to get clarification from the government about issues affecting its proposed operations. He received a briefing from the company before approaching Mr Kotsiras' office.

Mr Demetriou told Fairfax Media that the email should not have been sent from an AFL address and that he was not aware at the time that Mr Martin had sent it. He said he had had no other interaction with the government regarding Creswick Quartz's affairs other than the meeting with Mr Kotsiras. Court records and other government files reveal Creswick Quartz's chief executive Chris Karamountzos has been the subject of strong judicial criticism and adverse findings from the state's mining warden over his past mining activities at Creswick. A lawyer, Mr Karamountzos is also a director of and shareholder in Creswick Quartz and associated businesses. In 2000, the Legal Professional Tribunal ruled that Mr Karamountzos had engaged in misconduct in a case involving a Creswick quartz mine site. Mr Karamountzos was described by a justice of the Victorian Supreme Court as a "most unconvincing and unreliable witness" in a 1996 case regarding the Creswick mine and use of funds deposited into his firm's trust account.

"The moneys received into the trust account were paid out for every imaginable purpose including, one might suspect, that of rewarding (beyond any commercially justifiable extent) the friends and associates of those promoting the Creswick scheme," the justice wrote. Mr Karamountzos was also strongly rebuked by Victoria's mining warden in 1995 for having "misled the department". The warden found that a company directed by Mr Karamountzos had failed to disclose to government the involvement of convicted criminals in its 1990s Creswick mining ventures and "should not under any circumstances be granted licences to explore or mine in Victoria". Mr Karamountzos said the misconduct findings against him as a lawyer involved "administrative matters" and he strongly disputed the findings of the warden's "discredited" investigation. He said he recently made the record of his past activities available to the Creswick Quartz board and said he had "never received any special treatment because of other people's involvement" in the company.

"I've done nothing wrong ever. I don't have a criminal record. I'm a barrister and solicitor of the Supreme Court. I've been in this business for 20 years," Mr Karamountzos said. Mr Fitzpatrick said of Mr Karamountzos: "Isolated criticism of him from 20 years ago, which is entirely disputed by Chris, is not at all relevant today. I've found him honest and committed over the seven years I have worked with him." Another Creswick Quartz board member is businesswoman Polly Mazaris, the former managing director of ASX-listed Transpacific Baxter Group. Mr Demetriou chaired the Baxter Group's board between 2002 and 2007. A government spokesman said discussions between departmental officials and Creswick Quartz about proposed activities and new permits had taken place. He said no new works approvals had been applied for. An AFL spokesman said Mr Fitzpatrick had recently informed fellow AFL Commission members of the email issue. He said Mr Fitzpatrick and Mr Demetriou had at all times met the league's disclosure requirements regarding their personal business interests.