Guy Sebastian’s former manager has been granted conditional bail over charges in NSW of fraud totalling more than $1.15 million.

Celebrity manager Titus Day was nabbed at his New South Wales home on Wednesday night as police stepped up their investigation into the alleged fraud.

Police handcuffed the 47-year-old at his Bondi home and took him into custody at Waverley Police Station where he was charged with 61 counts of dishonestly obtaining financial advantage by deception, and now faces a maximum penalty of 10 years’ imprisonment.

Day – who has no previous criminal history – will next face court on July 21.

Sebastian on Thursday morning said in a statement that the charges against Day were a “sad vindication” of his position amid a years-long dispute with the former manager.

He and Day ended their business relationship in late 2017.

“All my income was controlled via Titus into a trust account and after noticing some disparities in payments, I requested important financial information that I was rightfully entitled to, and upon doing so our relationship began deteriorating,” Sebastian said.

“Over these last years, my integrity and reputation have been questioned, and many untruths have been publicly stated.”

Police say last month they received a report of an alleged fraud committed against the 38-year-old Sebastian and later noticed inconsistencies in bank account records and financial documents.

“On Wednesday 3 June 2020, officers from South Sydney Police Area Command received a report of an alleged fraud committed against a 38-year-old man,” NSW Police said in a statement on Wednesday night.

“Further inquiries revealed a number of frauds allegedly committed between December 2013 and April 2020.”

The relationship between Sebastian and Mr Day has further soured since they ended their 12-year business relationship in 2017.

Guy Sebastian was the first Aussie to represent Australia in the Eurovision contest in 2015. Photo: Getty

They are currently suing each other in the Federal Court, where each man has claimed he is owed hundreds of thousands of dollars by the other.

Detective Acting Inspector Guy Magee on Thursday said investigations had uncovered a handful of other alleged Day fraud victims.

“He had lawful access to the money, it’s a case of he simply failed to forward the amounts at the appropriate times,” Insp Magee told reporters.

“It’s based on trust and a breach of trust.”

Mr Day is accused of failing to tell the inaugural Australian Idol winner about money owed to him, the ABC reported. The singer approached detectives in early June, prompting police to open a fraud investigation.

Lawyers for Mr Sebastian argued royalties from the sale of his work disappeared and sought $200,000 from his former manager.

Mr Day, who runs Six Degrees Management with his wife, claimed he is owed $800,000 in unpaid fees.

The arrest of Mr Day follows years of discord between the men, following the dissolution of their working relationship in November 2017, after almost 12 years together.