In March 2005 the defendant entered a Licensed Post Office (LPO) Agreement with Australia Post to operate Galston Licenced Post Office. Between 2008 and 2009 Australia Post started dealing directly with larger commercial customers in the Galston area which meant reduced revenue for the Galston LPO; a credit facility to which the defendant owed $34,000 demanded immediate repayment; and as a result of the global financial crisis, the defendant’s bank required that he commence paying capital as well as interest on his loan, almost doubling his monthly repayments. The defendant then no
longer had sufficient liquidity to operate his business.
In 2008, the defendant started using Australia Post funds which he held on trust for Australia Post to meet his monthly repayments and other business expenses. In total the defendant used about $129,960 of Australia Post money and created false entries in accounting records in order to hide his conduct. Due to anomalies in his accounting records, Australia Post conducted an audit of Galston LPO and discovered the fraud.
The defendant pleaded guilty to 1 count of dishonestly obtaining a gain from a Commonwealth entity pursuant to section 135.1(1) of the Criminal Code. The defendant made full admissions and repaid the money to Australia Post. He was sentenced to 12 months imprisonment to be released forthwith on condition that he be of good behaviour for 3 years.