Director of Public Prosecutions v Kerovec

Case

[2018] VCC 382

1 March 2018

No judgment structure available for this case.

IN THE COUNTY COURT OF VICTORIA

AT MELBOURNE

CRIMINAL DIVISION

Revised
Not Restricted
Suitable for Publication

Case No.CR-17-01990

DIRECTOR OF PUBLIC PROSECUTIONS
v
DANIEL KEROVEC

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JUDGE:

HIS HONOUR JUDGE COISH

WHERE HELD:

Melbourne

DATE OF HEARING:

22 February 2018

DATE OF SENTENCE:

1 March 2018

CASE MAY BE CITED AS:

DPP v Kerovec

MEDIUM NEUTRAL CITATION:

[2018] VCC 382

REASONS FOR SENTENCE
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Subject:  
Catchwords:    
Legislation Cited:    
Cases Cited:            
Sentence:                

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APPEARANCES:

Counsel Solicitors
For the DPP Mr H. Tighe OPP
For the Accused Mr D. Gibson Victoria Legal Aid

HIS HONOUR:

1       Daniel Slavko Kerovec, could you stand up, please.  You have pleaded guilty to one charge of trafficking in a drug of dependence, namely, MDMA, cocaine, ketamine and ethylene, aggregate large commercial quantity.  This offence carries the maximum penalty of life imprisonment and 5000 penalty units.

2       It is unnecessary for me to recount the facts of the matter in detail as they are on transcript and contained in Exhibit 1, the summary of prosecution opening for plea.  That opening was accepted by you through your counsel.  I proceed to sentence you on the basis of the facts as opened by the Prosecutor which I shall now briefly summarise. 

3       Between 1 November 2016 and 4 May 2017, you trafficked in the drugs of dependence, namely, MDMA, cocaine, ketamine and ethylene in a quantity that was not less than a large commercial quantity applicable to those drugs of dependence. 

4       Using your laptop computer you ordered drugs from overseas via websites on the dark web and you paid for the drugs with Bitcoin.  The drugs were posted to a post office box in Preston or a known vacant address through international post using false names.  You operated your own online shop using the same websites on the dark web.  You received payment for the drugs in Bitcoin.

5       The offending was detected on 1 May 2017.  The aggregate quantity of the four drugs of dependence was 1.064 kilograms.  In order to conduct the transactions, you took the following steps:  (1) you established a "Dream Market" and "AlphaBay" account and listing on the dark web; (2) you entered an online lease agreement with Australia Post; (3) you leased a second post office box; (4) you accessed these post office boxes; (5) you took possession of many drugs; (6) you ordered and delivered drugs.  Deliveries were effected by placing drugs in DVD case and sending the items through Australia Post.

6       In your record of interview you made full admissions and explained your modus operandi.  You estimated that you made about 250 sales for approximately $40,000 over a six month period preceding your arrest on or about 4 May 2017.  You used this money to place further orders for drugs.  You estimated the value of the drugs you had in storage was $47,000.  The details of the analysts' findings on these drugs and their valuation are contained in the prosecution's opening. 

7       I state to you that I have taken into account the following matters in mitigation of sentence.  You have pleaded guilty.  You are entitled to have that fact taken into account in your favour and I do so.  The community has, by your plea, been spared the time and cost of a trial.  Witnesses have been spared the ordeal of giving evidence upon your trial.  You pleaded guilty at an early stage.  You cooperated with authorities.  You made full admissions in your record of interview.

8 In these circumstances of your arrest and admissions the comments of the Court of Appeal in R v Doran [2005] VSCA 271 at paragraph 14 are very relevant. I accept that you are genuinely remorseful. I have been told something of your personal circumstances and these matters are set out in the written sentencing submissions tendered on your behalf and in the report of Dr Zimmerman.

9       You are 33 years of age, having been born on 15 April 1984.  You are a single man with no dependants.  You were living with your parents until your arrest and subsequent remand.  You were unemployed. You were educated to year 12 level.  You studied piano for one year.  You then worked in a number of manual jobs.  You used a range of substances, including illicit drugs, heavily from your late teens.

10      I accept Dr Zimmerman's opinion that you are suffering from schizophrenia and that your illness is in partial remission in the context of treatment with antipsychotic medication.  You also suffer from a severe movement disorder.

11      It is not submitted on your behalf that any of the well known principles enunciated in Verdins’ case apply.  I have, however, taken into account your psychiatric illness and the severe movement disorder as part of your personal circumstances.  I have also had regard to the difficulties you initially encountered whilst in custody.  Fortunately there has been improvement in your circumstances since you moved to the Marngoneet Correctional Centre.

12      I assess your prospects of rehabilitation as being good. 

13      Against these matters in mitigation, however, your actions were very serious indeed.  You trafficked in a large commercial quantity of drugs.  You trafficked in multiple substances.  You engaged in approximately 250 sales over a period of approximately four to six months.  You reinvested the proceeds of sales to facilitate the further importation of drugs.

14      The offending involved a degree of sophistication through your use of the dark web on the internet and the Bitcoin currency.  A further aggravating factor is that part of the offending occurred whilst you were undergoing a sentence of a community corrections order.  On 23 February 2016 at the Heidelberg Magistrates’ Court you were convicted and sentenced to a 12 month community corrections order in respect of the offences of attempted possession of ecstasy and attempted trafficking in ecstasy.  This is a very relevant prior conviction as it involved attempted possession and attempted trafficking in drugs of dependence.

15      The other prior matters involving a bomb hoax and fail to answer bail are of little, if any, relevance.  You have spent 301 days in custody.  The pre-sentence detention is agreed at 301 days.

16      As well as the matters to which I have referred, I must also take into account the need for general the specific deterrence.  Specific deterrence is less relevant as I assess your prospects of rehabilitation as being good.  General deterrence is of considerable importance in a case such as this.  Superior courts have consistently emphasised that this type of offending must be discouraged.  The maximum penalty of life imprisonment reflects the seriousness with which parliament views this offending.

17 I am called upon by the Sentencing Act and it is appropriate to manifest the community's denunciation of your conduct and, generally, to impose a just punishment. It is not in issue that the only appropriate disposition is a significant sentence of imprisonment.

18      Having regard to all relevant facts and appropriate sentencing principles, I sentence you as follows.  You are convicted and sentenced to seven years imprisonment.  The non-parole period is the minimum term that justice requires you to serve, having regard to all the relevant circumstances that exist.  For that reason it cannot be fixed automatically.  All relevant factors and sentencing principles are to be taken into account.  I have to consider when you should be eligible for mitigation of confinement and in turn rehabilitation under conditional supervision.  In all the circumstances, I direct that you serve a minimum term of five years’ imprisonment before coming eligible for parole. 

19 As prescribed by s.16, sub-s.(4) of the Sentencing Act, I declare that the period of time you have spent in custody is 301 days, which is to be reckoned as time already served under the sentence. I direct that such be noted in the records of the court. I further order pursuant to s.89D(i) that you be declared to be a serious drug offender.

20 I have made the disposal order, forfeiture order and pecuniary penalty orders sought by the Crown. Pursuant to s.6AAA of the Sentencing Act, I state that the sentence and non-parole period I would have imposed but for the plea of guilty is nine years with an non-parole period of six years.

21      Mr Tighe, Mr Gibson, anything in terms of the formalities?

22      MR TIGHE:  No, Your Honour.

23      MR GIBSON:  No, Your Honour.

24      HIS HONOUR:  Thanks a lot for your help.  The prisoner can be removed and I will just stand down.

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Cases Citing This Decision

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Cases Cited

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Statutory Material Cited

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R v Doran [2005] VSCA 271