Director of Public Prosecutions v Mantach

[2016] VCC 1027

IN THE COUNTY COURT OF VICTORIA Revised
Not Restricted
Suitable for Publication

AT MELBOURNE
CRIMINAL JURISDICTION

CR 16-00215

DIRECTOR OF PUBLIC PROSECUTIONS

v

DAMIEN MANTACH

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JUDGE:	HER HONOUR JUDGE GAYNOR
WHERE HELD:	Melbourne
DATE OF HEARING:
DATE OF SENTENCE:	19 July 2016
CASE MAY BE CITED AS:	DPP v Mantach
MEDIUM NEUTRAL CITATION:	[2016] VCC 1027

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

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APPEARANCES:	Counsel	Solicitors
For the Director of Public Prosecutions	Mr S. Kenna
For the Accused	Mr G. Steward

HER HONOUR:

1Damien Adam Mantach, you have pleaded guilty before this court to 15 charges of obtaining financial advantage by deception contrary to s.82 of the Crimes Act 1958.

2The facts underlying your offending are as follows:  From 1997 you were employed in various roles associated with the Liberal Party of Australia beginning in Tasmania, where you rose to the role of State Director.

3In 2008, you relocated to Victoria, commencing in a consultant role with the Victorian division of the Liberal Party, then advancing to a deputy campaign director role and confirmed as State Director of the Victorian division of the Liberal Party in March 2011.

4You held that position through to March 2015.  Needless to say, this was a position of great authority and trust involving the administration of the party.

5In May 2010, along with your wife Jodie Mantach, you registered a business with ASIC in your wife's name.  This business traded as Campaign Mail Logistics.  Associated with the business was a Commonwealth Bank of Australia business transaction account no.06383410249563 in your wife's name, trading as Campaign Mail Logistics.

6You held and exercised control over other Commonwealth Bank of Australia accounts including a direct investment account no. 06716710865010.

7Between May 2010 and January 2015, through your role within the Liberal Party, you received a financial advantage by deception to the value of $1,558,913 through the creation, submission and subsequent payment of 53 false invoices.

8Your offending encompassed three streams of conduct:

20 false invoices totalling $643,413 from Campaign Mail Logistics to a printing and mailing company, Melbourne Mailing Pty Ltd;

28 false invoices totalling $659,300 from Campaign Mail Logistics to the Liberal Party of Australia Victorian division; and

5 false invoices totalling $256,200 from Park Street Online Solutions to the Liberal Party of Australia, Victorian division.

9In short compass, you began your offending by issuing Campaign Mail Logistics invoicing to Melbourne Mailing.  You then issued Campaign Mail Logistics invoices directly to the Liberal Party.  Park Street Online Solution invoices were then added in to access funds available for ID and social media development.

10You interchanged between these three streams of offending:

11Campaign Mail Logistics involved invoicing to Melbourne Mailing Pty Ltd.  The first stream of offending involved Melbourne Mailing Pty Ltd, a printing and direct mailing business which co-ordinates the printing of material and its subsequent mail distribution on behalf of its clients.  Victorian division of the Liberal Party was a primary client and particularly relied upon Melbourne Mailing during election periods.

12In early 2010, Melbourne Mailing Chief Executive Officer Felice Amato was told by you that the Liberal Party were looking for a print and mail supplier for the upcoming federal election and subject to performance, the following state election.

13Mr Amato was keen to build this commercial relationship, the Liberal Party had been a longstanding and important customer.  Melbourne Mailing was chosen as the supplier for the Liberal Party during the 2010 election.

14Mid 2010 was a busy period for Melbourne Mailing and the Liberal Party, and during this time, you met Mr Amato to give him instructions on the work required and to whom it would be invoiced.

15At this time you also arranged a meeting with Mr Amato at the Liberal Party offices where you requested he pay an additional levy upon invoices issued by Melbourne Mailing for specific work performed for the Liberal Party.

16Melbourne Mailing would then receive repayment of these invoices including the inflated levy.  You would then invoice Melbourne Mailing to retrieve that excess amount.

17Mr Amato believed you needed to arrange to pay a company that was performing services for the Liberal Party which it could not be seen paying for directly.  He did not suspect anything untoward given your senior role in the Liberal Party and assumed you had full authority to give these instructions.  Your proposal was agreed to.

18The entity through which you would go through the invoice and retrieve the excess funds was identified to Melbourne Mailing as Campaign Mail Logistics.  From this point on, you would liaise with Mr Amato who would provide an estimate of work to be performed and you would indicate which jobs were to be subject to the levy and by how much.  This levy was not to be reflected in the invoices issued by Melbourne Mailing.

19Later in the offending period, you relayed your instructions to Melbourne Mailing via Liberal Party staff member Andrew Camenzuli.  When Mr Camenzuli questioned the levy with him, you told him, "Don't be concerned about that.  I'll take care of that" and he believed there was nothing untoward.

20Melbourne Mailing performed the required printing and distribution and sent an invoice to the entity nominated by you which was either the Liberal Party or specific members of Parliament, either state or federal.  The inflated invoice did not itemise the added levy.

21The invoice was directed to the Victorian Liberal Party, the payment would be received from them.  If it was directed to a state member of Parliament, it would be forwarded to Parliamentary services for payment by them or if the invoice was received by a federal member of Parliament, it would be forwarded to the Department of Finance and be paid by them.

22Melbourne Mailing ultimately received payment of the invoices through either the Victorian Liberal Party, Parliamentary services or the Department of Finance.

23Melbourne Mailing held the excess funds.  You would then send a false invoice to Mr Amato to retrieve the excess gathered funds and you manufactured these false invoices using a letterhead of your business Campaign Mail Logistics for payment to the associated Commonwealth Bank account of Campaign Mail Logistics over which you had control.  Melbourne Mailing would then make a payment to that account via electronic transfers.

24Between June 2010 and January 2015, you received payments totalling $643,413 for 20 Campaign Mail Logistics invoices issued to Melbourne Mailing and part of this consisted of ten separate invoices paid as a lump sum on
29 January 2015.

25Campaign Mail Logistics invoicing to the Victorian Liberal Party.  This second stream of offending involved the creation of false Campaign Mail Logistics invoices which you billed to yourself as State Director of the Victorian Liberal Party for services that were not performed.

26These invoices were then paid by electronic fund transfer to the Campaign Mail Logistics Commonwealth Bank account.

27Between June 2011 and August 2014, you received payments totalling $659,300 for 28 Campaign Mail Logistics invoices issued to the Victorian Liberal Party.

28Park Street Online Solutions invoice into the Victorian Liberal Party.  The third stream of offending involved you generating false invoices from a fictitious entity you created called Park Street Online Solutions billed to yourself as State Director for the Victorian Liberal Party for services that were not performed.

29The bank account details for payment outlined in these invoices was a Commonwealth Bank direct investment account held by you and your wife, but over which you had control, into which funds were transferred via electronic transfer, you printing and authorising the invoices and submitting them for payment.

30Between June 2013 and October 2014, you received payments totalling $256,200 for five Park Street Online Solution invoices issued to the Victorian Liberal Party.

31After your departure from the Liberal Party, inquiries were undertaken as a result of apparent election overspending and suspect invoices were identified.  The Liberal Party engaged the services of PBE Advisory, a forensic investigations firm.

32Following this investigation, you received a telephone call from Paul Shannon, the financial controller of the Victorian Liberal Party on
17 August 2015 requesting that you attend a meeting with him and PBE Advisory forensic investigator Peter Morris to discuss invoices that had been received by the party.

33That meeting took place on 17 August 2015 which you attended with your legal representative Tony Hargraves.  At this meeting, you informed that PBE Advisory had established you had misappropriated about $800,000 and you agreed to attend an interview with PBE Advisory in the next day.

34At that interview, you provided investigators with all invoices, bank records and a USB stick upon which transactions were recorded, culminating in the sum of $1,558,913 being ascertained as the amount misappropriated by you.

35In other words, you fully disclosed your illegal activity, provided copies of the false invoices and bank statements and extended your full co-operation.

36PBE Advisory's analysis of your bank transactions between June 2010 and August 2015 identified expenditure including the following:

Share purchase of $506,641;

Motor vehicle outlay of $81,859;

Home loan repayments of $45,000; and

$611,031 invested in Gusto Café.

37You have made restitution so far of $535,085.65.  You hope to make further repayments on finalisation of the property settlement accompanying divorce proceedings now undertaken by your wife.

38This matter was reported to police Fraud and Extortion Squad and again, you extended your full co-operation, voluntarily attending an interview on
18 November 2015 where you made full admissions in respect of the 53 false invoices.

39Following your interview, you appeared at the Melbourne Magistrates' Court and were remanded in custody to appear at committal mention on
17 February 2016.  You made no application for bail on that occasion and have remained in custody ever since.

40The Office of Public Prosecutions were advised on
9 December 2015 that you intended to plead guilty and on 17 February 2016, were formally committed for trial and a plea date set down.  You again being remanded in custody and again, not making a bail application on that occasion.

41The prosecution, at the outset of these plea proceedings, conceded that your co-operation had saved the Victorian Police Fraud and Extortion Squad months of investigation and brief preparation.

42I have received a victim impact statement essentially from the Victorian Liberal Party, outlining the financial impact of your crime which also obviously carried with an emotional concern and trauma surrounding what was seen to be a betrayal on your part.

43The maximum penalty for obtaining a financial advantage by deception is ten years' imprisonment.  Charges 2, 3, 12, 14 and 15 are continuing criminal enterprise offences under the Sentencing Act 1991 and consequently, the maximum penalty for each of these is 20 years' imprisonment.

44I now turn to your personal circumstances.  You are 42 years of age and have no prior convictions.  You are the only child of your parents and were born in Launceston, Tasmania.

45You described to psychologist Dr Matthew Bath, whose reports dated 4 and 12 May 2016 which were tendered on the plea, that you had a pleasant and positive upbringing marred only by ongoing physical and mental problems suffered by your mother.

46You completed Year 12 at Launceston Grammar, passing your HSC and achieving very good results.  As a teenager, you worked part time for your father who was a property valuer and for McDonald's and you continued working part time for three years after leaving school, then completed a Bachelor of Arts, majoring in Communications at Deakin University, working part time at the Commonwealth Bank, during that time, to support yourself.

47You returned to Launceston to work for 12 months as a media advisor for a state Liberal member of Parliament, a job you obtained partly through your parents strong connections with the Liberal Party.

48You then worked for three years for Senator Joyce Newman, undertaking campaign work which you enjoyed and decided on as your future career.

49You then worked in Canberra and Melbourne for several years after
Senator Newman retired, focusing on campaign and election duties and training Liberal Party staff.

50In 2005, you were offered a State Director's role in Tasmania which position you held for seven years.  You were then offered a job as deputy campaign manager for the Victorian Liberal Party and you did this for three years, eventually being promoted to the State Director's role which you undertook for the next three years.

51You resigned from this position several months before the offending was discovered for personal reasons.  However you did tell Dr Bath that you believed it was only a matter of time before your offending came to light.

52You met your wife in 1995 at Deakin University and the two of you married nine years later.  You have two children aged six and ten.  The marriage ended on your revelation of your offending and divorce proceedings are underway.

53The marriage however had difficulties for some years, apparently running into trouble when you became the Tasmania State Director in 2005.

54Your wife and eldest daughter, then aged three, moved to Tasmania with you but your wife missed her family and was unhappy there, moving back to Victoria, you told Dr Bath, without consulting you and taking her daughter with her.

55You became depressed and lonely, began drinking to excess and gambling.  Your wife's move caused financial pressures upon you involving rent on two properties whilst at the same time, tenants in an investment property refused to pay a large some of rent that was owed.  You commuted to Victoria when possible but the relationship suffered.

56You resigned your position in 2008 and moved to Ocean Grove to live with your wife.  However the marital problems persisted, you believing your long work hours had badly affected your relationship.  Your wife seemed distant and you felt you were a failure as a husband and father and that there was nothing you could do to make your wife happy.

57You had decided to leave politics at this stage but were then offered the deputy campaign director position which you felt you could not refuse.

58It seems your gambling, alcohol use and depression for which you received psychological assistance in Tasmania, did resolve once you returned to Victoria.

59However you told Dr Bath that your depression returned when you took up the role of State Director.  You said you found the position combative and nasty, but felt you had no option but to stay, as politics was all you knew.

60You struggled with the long hours of work, the continuing deterioration in your marital relationship and the distancing from your daughters due to your work commitments.

61You told Dr Bath you initially began your offending to pay off significant debts incurred whilst in Tasmania.  You told him the debts made you feel, "Inadequate and pressured."  However you admitted that your offending continued well after the debt was repaid.

62Dr Bath stated,

"Mr Mantach discussed deep feelings of inadequacy and failure throughout the period of offending.  He told me he was under intense pressure with his work for the Liberal Party and his marriage was continuing to deteriorate which continued to further issues with himself."

63Dr Bath continued,

"Mr Mantach admitted that he coped with issues poorly and felt that providing his family with a sense of financial stability albeit fraudulently was a manner of, 'Relieving stress and tension.  It made me feel better about myself.'"

64Much of the money went into a café owned by your wife who was totally ignorant of your offending.

65Following revelations of your offending, as I have said, your marriage collapsed.  For a while you experienced suicidal ideation, fantasising about killing yourself, but felt you could not do this to your daughters.

66You experienced and continue to experience, according to Dr Bath, feelings of intense self-loathing and shame.  He described you as expressing guilt and shame for your offending.

67During your record of interview with police on 18 November 2015, you stated that you were, "Under substantial duress and it was a way of clearing out the debt quickly just to relieve the pressure."

68You continued stating, "It was never actually about greed.  It was not about that for me.  I had a number of personal issues that I was not dealing with properly and when I took money, it basically relieved money on my personal life.  It was an anaesthetic.  I didn't need the funds for the obvious thought of material ratification."

69Since being remanded in custody, you have been held at Marngoneet Prison.  In that time, you have essentially taken up full time occupation there as an education prison support worker, teaching other prisoners to read and write letters and you teach politics.  You are also particularly involved in a new program there called "Changing Tracks" which is a 12 week course run by Box Hill TAFE in the gaol providing specialised assistance to prisoners to help them integrate into the community.  You assist in educating inmates on work related skills such as resume writing and presentation.

70Dr Bath expressed a guarded optimism as to your rehabilitative prospects, stating

"Mr Mantach's emotional vulnerabilities and the dysfunctional features of his personality adjustment need to be addressed in a comprehensive and sustained manner."

71Dr Bath says you remained overwhelmed, ashamed and continue to battle with suicidal thoughts.  He said you also continue to experience depressive moods.

72He described you however as,

"An intelligent man who values pro-social connections, has a stable employment record and is afforded positive support from his parents and daughters.  Furthermore, Mr Mantach has displayed a positive disposition towards psychological treatment (I note that you attended upon Dr Bath for treatment prior to your incarceration) and has previously engaged well with such intervention."

73Your counsel conceded that the offences represented a serious breach of trust, involving the misappropriation of a significant amount of money and involved many transactions taking place over a lengthy period of time.

74It was conceded the considerations of general deterrence are paramount in my sentencing exercise and that the only option to this court is a term of immediate imprisonment to be served by you.

75However your counsel submitted and I accept, that there are a number of mitigating factors to be taken into account in your case.

76I accept that your plea of guilty which was made at the earliest opportunity was a genuine reflection of the remorse you feel over your offending.

77Your co-operation with investigators was in my view exceptional and as I have said, was recognised by the Crown as having saved Victoria Police months of investigation and preparation.

78Unfortunately, it is the experience of these courts that generally those who have committed large scale systemic frauds are often reluctant to admit it or if they do, will do so only on a piecemeal basis, rarely volunteering to the full extent of their dishonesty.

79Police often have to return time and again to the protagonist with further evidence of dishonesty which is obtained by time consuming and costly investigation.

80Your admissions from the first exceeded the extent of your dishonesty as it was then known.  Your readiness to confess the whole and provide investigators with the necessary material and documentation was quite singular.  Your actions in my view in that respect, are deserving of particular mitigatory weight.

81Further, your reaction to your offending also inclines me to more readily accept Dr Bath's opinion, that essentially, your offending was motivated by psychological factors rather than need or greed.

82You have no prior convictions.

83I also accept your counsel's submissions, that because you occupied an office of some prominence, you have attracted a large amount of humiliating publicity in the media.  It is clear from the authorities that this is a matter that should be taken into account.

84As His Honour Mr Justice Callahan stated in Ryan v R [2001] 8 CA 21,

"The crime of a person occupying an office of some prominence will often attract much greater vilification, adverse publicity, public humiliation and personal social and family stress than a crime by a person not so circumstanced.  When these consequences are attracted, they should not be ignored by the sentencing court.  Character is not, as has been observed, a one-dimensional feature of any person."

85I accept this is a mitigatory matter I must take into account in sentencing you.

86A raft of references from family, friends and former work colleagues, some of them quite eminent people were tendered by your counsel on the plea.

87In general, they all spoke of your dedication, leadership, hardworking professional respect nature.  They noted your otherwise exemplary character, generally expressing surprise at what was overall described as uncharacteristic behaviour making up your offending.  I note you continue to enjoy the support of your parents.

88At the end of the day however, Mr Mantach, this was protracted, deceitful, deliberate and planned offending.  It involved a great breach of trust inherent in your responsible position which also allowed you to camouflage your conduct.

89As has been conceded, principles of general deterrence, denunciation and just punishment are paramount in this exercise before me.

90In sentencing you, I do of course take into account the mitigatory factors I have outlined, but it is clear that only a term of imprisonment to be immediately served can properly reflect the gravity of your offending.

91I therefore sentence you as follows:

Charge 1, you are sentenced to 6 months imprisonment;

Charge 2, you are sentenced to 8 months imprisonment;

Charge 3, you are sentenced to 8 months imprisonment;

Charge 4, you are sentenced to 9 months imprisonment;

Charge 5, you are sentenced to 15 months imprisonment;

Charge 6, you are sentenced to 20 months imprisonment;

Charge 7, you are sentenced to 4 months imprisonment;

Charge 8, you are sentenced to 3 months imprisonment;

Charge 9, you are sentenced to 9 months imprisonment;

Charge 10, you are sentenced to 8 months imprisonment;

Charge 11, you are sentenced to 8 months imprisonment;

Charge 12, you are sentenced to 10 months imprisonment;

Charge 13, you are sentenced to 12 months imprisonment;

Charge 14, you are sentenced to 10 months imprisonment; and

Charge 15, you are sentenced to 12 months imprisonment.

92The base sentence will be the sentence imposed on Charge 6, which is 20 months.

93One month of the sentences imposed on Charges 1, 7 and 8, 2 months of the sentence imposed on Charge 11, 3 months of the sentences imposed on 2, 3, 4, 9, 10, 12 and 14, 4 months of the sentences imposed on Charges 13 and 15 and 6 months of the sentence imposed on Charge 5 will be served cumulatively to the sentence imposed on Charge 6 and to each other.

94This gives a total effective sentence of 5 years.  I direct that you serve a minimum term of 2 years and eight months before becoming eligible for parole.

95What is the PST please?

96MR KENNA:  Your Honour, on my calculation it is 244 days.

97HER HONOUR:  I direct that - does that include today?

98MR KENNA:  No.

99HER HONOUR:  I direct that 245 days of this sentence have already been served by way of pre-sentence detention.

100MR KENNA:  Your Honour, I said - it was 244.  If it is today, it is 245.

101HER HONOUR:  What did I say?

102MR KENNA:  You said 245.

103HER HONOUR:  That is what I am doing.  Thank you.  I am including today.  Thank you.

104Pursuant to s.6AAA, I declare that if you had not pleaded guilty, I would have ordered you to serve a term of imprisonment of 7 years with a minimum term of 4 years and six months.  Thank you.  Is there anything else?

105I have got copies of the sentence, although not the last bit, of the sentencing remarks for counsel and there is some extra copies if press need them as well.  All right.  Thank you very much.

106(Short adjournment.)

107HER HONOUR:  What have I neglected to do?

108MR STEWARD:  Nothing ‑ ‑ ‑

109MR KENNA:  Your Honour, no, you have not neglected anything.  Your Honour, I think I needed to mention that the Crown does seek a s.464ZF(2) order.  Simply because ‑ ‑ ‑

110HER HONOUR:  On what basis?

111MR KENNA:  An indictable offence has been proven and under the relevant Act, because a person these days where you are convicted of an indictable offence, the prosecution may seek a s.464 order.

112HER HONOUR:  Yes, all right.  I do not really - have you got anything to say, Mr Steward?

113MR STEWARD:  Yes, Your Honour.  My submission, it is unnecessary overkill.

114HER HONOUR:  I am inclined to agree given the nature of the offending and so forth.  Yes.  I am not going to grant it.

115MR KENNA:  Yes.

116HER HONOUR:  Can I just make - my ever astute associate has said that for Charge 15, I said it was 15 months.  Sorry, it should be 12 months.  Sorry about that.  Is everything nice and clear?

117MR STEWARD:  I could not possibly quibble or understand it at this stage, but that is more reflection on me.

118HER HONOUR:  Just while we are quietly here, so that is with the cumulation, you have got 1 month of the sentences on 1, 7, and 8 which is 3 months.  I am sure this is right.  Two months of the sentence on Charge 11 which is 5.  Then 3 months of the sentences on 2, 3, 4, 9, 10, 12 and 14.  So that is 7.  So that is 21.  Four months of the sentences on 13 and - which is 8.  Six months of the sentence on Charge 5.  So that is 6 and 8 and 14 and 21 is 35 and 35 and 2 is 37.  Three is 40.  Add that to 20 months.  That is 60 months and that adds up to 5 years.

119MR STEWARD:  Your Honour pleases.

120HER HONOUR:  Did you follow that, Mr Steward?  Did that make sense to you?

121MR STEWARD:  Yes, Your Honour, I tried to.

122HER HONOUR:  Thank you very much.  Anything else that I needed to do?

123MR STEWARD:  No, Your Honour.   Thank you.

124HER HONOUR:  All right then.  Thank you very much.

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