Director of Public Prosecutions v Sapountzis

[2025] VCC 1287

IN THE COUNTY COURT OF VICTORIA

AT MELBOURNE

CRIMINAL DIVISION

Revised
Not Restricted
Suitable for Publication

Case No. CR-23-01786

DIRECTOR OF PUBLIC PROSECUTIONS

v

JOHN SAPOUNTZIS

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JUDGE:	HER HONOUR JUDGE BLAIR
WHERE HELD:	Melbourne
DATE OF HEARING:	4 September 2025
DATE OF SENTENCE:	4 September 2025
CASE MAY BE CITED AS:	DPP v Sapountzis
MEDIUM NEUTRAL CITATION:	[2025] VCC 1287

REASONS FOR SENTENCE
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Subject:CRIMINAL LAW – Sentence

Catchwords:              Payment of secret commissions – possess property suspected of being proceeds of crime – good character – plea of guilty – remorse – delay – mental health – excellent prospects for rehabilitation  

Legislation Cited:      Sentencing Act 1991 (Vic); Criminal Procedure Act 2009 (Vic)

Cases Cited:DPP v Cameron Bacon [2019] VCC 220; Nhat Luong Tran v The Queen [2014] VSCA 85

Sentence:                  Community Correction Order for a period of 16 months

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APPEARANCES:	Counsel	Solicitors
For the DPP	Mr Peter Pickering	Office of Public Prosecutions
For the Accused	Dr Mark Gumbleton	New Chapter Legal

HER HONOUR:

1John Sapountzis on 22 August 2025 I granted your application for a sentence indication. Pursuant to section 207 of the Criminal Procedure Act I indicated that if you pleaded guilty to a rolled-up charge of payment of secret commissions and a summary related offence of possess property suspected of being proceeds of crime, I would impose a Community Correction Order.[1]

[1] Criminal Procedure Act 2009 (Vic).

2Through your counsel you accepted this indication. You were arraigned in short form on 26 August 2025, and you entered pleas of guilty in relation to these same charges. Your matter has been listed for plea today on 4 September 2025.

3You have no prior history.

Circumstances of offending

4The agreed factual basis of your offending was detailed in the Summary of Prosecution Opening for Plea dated 26 August 2025. This document was tendered on your plea hearing. What follows is a summary. On 1 March 2014, you commenced employment at National Paper Industries (NPI) as operations manager. NPI is a medium sized business which specialises in the manufacture of paper products, cardboard products and paper re-winding. It is in Broadford, the same place as JLN Paper (JLN), is a subsidiary of NPI. 

5Visy Paper (Visy) is the major client and supplier of raw materials for NPI/JLN. 

6Your role as operations manager involved the day-to-day operations of NPI/JLN and included the ordering of and payment for the raw materials from Visy. You had authority to authorise all purchases and payments made by NPI/JLN, particularly with Visy. 

7On 4 May 2014, your co-accused Cassandra Long commenced employment as an accounts manager at Visy paper, Essendon Fields. 

8As part of your role as operations manager, you were instructed by the directors of the NPI, being Leon Shapiro and Neil Burgin, to make payments to Visy. 

9Mr Shapiro and Mr Bergin had been informed by Visy that it was necessary to make additional “entertainment” payments, to retain the paper rewinding business contracts with Visy. The payments were to be paid into a Visy “entertainment” account by NPI/JLN and were considered by the directors as the cost of retaining the Visy business. 

10The directors authorised you to make these entertainment payments to Visy on behalf of NPI/JLN. Between 28 November 2016 and 23 October 2019, you authorised 36 payments in varying amounts totalling $467,500 for the “entertainment expenses”. 

11You made the payments into an account in the name of U-Evolve Pty Ltd, a company controlled by Ms Long. She issued the invoices to NPI, which listed the money being payable for “consulting services”. You in your capacity as General Manager of NPI directed the in-house accountants to make the payments to the U-Evolve account. The directors of NPI were aware that the payments were being made to U- Evolve, believing them to be payments for purported “entertainment expenses” to maintain NPI’s business relationship with Visy. 

12You then authorised the payment by NPI of the invoices to the bank accounts described on the various U-Evolve invoices, these accounts were in the name of Ms Long’s former partner, her former name and in the name of her daughter. Ms Long used the money you transferred without the authority of NPI/JLN for her own purposes. 

13In making these payments you paid a secret commission to Ms Long. The invoices against which the monies were paid on your authority were purportedly for "consulting services" which were never provided to NPI. The payments were made by you to the U-Evolve account with the expectation that the receipt by Ms Long would influence her to show favour to NPI and therefore maintain Visy’s business relationship with NPI. 

14Between 21 July 2017 and 15 March 2018, Ms Long undertook building renovations at her residence in Cobblebank. Between 21 July 2017 and 22 November 2018, you made 13 payments to various suppliers for building renovation invoices in the amount of $24,255.76. 

15You authorised payments of the invoices for Ms Long’s home renovations by NPI credit card or electronic funds transfer from NPI accounts. 

16You, in your role as General Manager approved the payment of the secret commissions in the form of the home renovation expenses for Ms Long. You did so with the permission of the directors, who regarded the payment of purported “entertainment expenses” as being necessary to maintain the business relationship with between Visy and NPI. 

17The combined value of the payment made by you to Ms Long both to U-Evolve and for the home renovations was $491755.76. (Charge 1 rolled-up charge) 

18In late 2019, Visy became aware of significant discrepancies in the accounts managed by Ms Long in her role as the Visy accounts manager. This included many paper reels that had been deleted from the Millwide computer management system. 

19Ms Long was interviewed by David Latta, the head of internal audit and risk management at Visy on 30 October 2019. When confronted by evidence of the payments to U-Evolve from the NPI/JLN accounts, Ms Long admitted that the payments authorised by you were a “kick back”. 

20The investigation by Visy of Ms Long’s offending then led to the investigation by NPI/JLN of the accounts managed by you. It was ascertained that between 17 November 2018 and 13 September 2019 Ms Long had made 9 payments totalling $74,361.00 to you using her daughter’s CBA account. This sum is reasonably suspected of being the proceeds of crime. (SRO – deal property reasonably suspected to be the proceeds of crime). 

21On 13 February 2020 you were dismissed from NPI/JLN. On 19 November 2020, police executed a search warrant at your home. You were arrested and taken to Moonee valley police station for interview. During the search, police located seven U-Evolve invoices and a HP laptop seized from your desk contained 37 U-Evolve invoice files that had been saved. 

22You made a “no comment” response to allegations about the U-Evolve invoices. You admitted a “working relationship” with Ms Long. 

Nature and gravity of offending

23The charge of paying a secret commission – offering a reward to influence another, is a serious offence as indicated by the maximum penalty provided of 10 years imprisonment. The charge of dealing with property suspected of being proceeds of crime is a summary offence punishable by a maximum of two years imprisonment.

24Your criminality involved signing off on payments to U-Evolve for consulting services in the knowledge that this company did not exist and no such services had been provided to NPI, further you authorised payments to third party contractors in the knowledge that those payments were for improvements to Ms Long's house. Your actions occurred along with and under the direction of company directors. These payments were made in the knowledge that they would be received by Ms Long and in return she would ensure her employer, Visy, showed favour to NPI.

25In your case, Charge 1 is a rolled-up charge. When sentencing on a rolled-up charge, the court must consider all the circumstances of the offending, including the time frame over which it was carried out and the totality of the harm occasioned. A rolled-up charge is otherwise treated as a single formal charge.

26Your offending persisted for around three years and involved in the order of 40+ payments totalling around $490,000. Although the amount did not translate to a loss in that amount, it nonetheless is reflective of the seriousness of the circumstances. Your offending was not particularly sophisticated. However, it was undetected for some time. I do not find a breach of trust as such on your part, because of the connection to your employment role.  Your conduct was not only supported by the directors but was done at their direction and because of this fact I consider your role to be subordinate. The real gravamen of your offending was to bestow an advantage in commerce upon NPI. I accept that you did not profit directly from your offending apart from maintaining your employment.

Background

27Mr Sapountzis, you are now 63 years old. You were born in Florina, Greece. You are an Australian citizen having emigrated to this country in 1980 when you were 18 years of age. Since 1981 you have been married to Helen, who is now aged 66. Yours is a loving marriage and you have never separated. Together you and your wife had three sons. Each of your sons are now adults who are gainfully employed and contributing community members. In total you have seven grandchildren, whom you love dearly. You are very involved in their lives.

28Mr Sapountzis it appears from your history that your life has been committed to caring for your family. In Greece you left school at the age of 11 to support your family in circumstances where your father suffered ill health. You worked hard as a shepherd and on a pig farm. Shortly after moving to Australia and establishing yourself, you brought both parents here and continued to care for them. Both of your parents have since passed away. You remain close to your two sisters, one who lives here in Melbourne and the other who remains in Greece.

29In Australia, your wife obtained work in a factory. Sadly, she suffered a major work injury that has resulted in the loss of 80 per cent use of her right arm. Your wife is now in receipt of an aged pension, and you act as her unpaid carer.

30In more recent years you have not enjoyed good health. In 2009, you suffered a stroke, a heart attack in 2013, and in 2017 you were diagnosed with Type 2 diabetes. You now take medication daily for cardiac and diabetes management; you drink only minimal amounts of alcohol. Although you have no history of psychiatric hospitalisation or medication, you have had fleeting suicidal ideation after arrest. You declined a mental health care plan and cope with your emotions by talking to your GP and by employing other personal strategies.

31You were a dedicated and valued worker at Visy where you were employed for 33 years. You later became a consultant and business owner of JS Paper Supplies and then JLN. Your employment with NPI was terminated in 2020. You dispute the lawfulness of this termination and claim a significant amount of money is owed. You are engaged in civil proceedings to recover this sum. In the wake of your termination and the discovery of this offending you have developed severe depression. You now do some work landscaping, and you are in receipt of a partial pension.

32You have no history of legal trouble and no prior convictions.

Matters in mitigation

33Your counsel Dr Gumbleton relied on several powerful mitigatory factors on your behalf. Firstly, your plea of guilty. I accept that although this was not an early plea in the sense of timing it was a plea to an appropriate charge that could only be negotiated after the cross-examination of Mr Bergin and Mr Shapero at committal. Your plea is important as it evidences your acceptance of responsibility for your role in the offending and demonstrates your willingness to facilitate the course of justice. There is considerable utilitarian value in that through your plea a complex trial has been avoided thereby saving the court the time and expense of running such a trial. I have allowed a considerable discount for your plea of guilty.

34I accept your plea is demonstrative of your remorse and I accept your heartfelt apology to the court. I find your remorse is genuine.

35Secondly, Dr Gumbleton relied upon your prior and subsequent good character. You fall to be sentenced as a first time offender who has not offended since and I should add to that, at the age of 63 years, you are what the court would consider a mature age offender, and so that elevates the weight that the court can put on the fact that you are a person of good character. Your offending is isolated to one period. It has occurred in the context where you have been a loyal and hardworking employee for many years, and you have continued in that role with NPI & JLN. You are a man who has worked since the age of 11 and provided for his family. Whilst working at Visy your hard work was evidenced or rewarded through your progression from the floor to management positions. Since the offending has been uncovered you have been arrested, processed and questioned by the police. No doubt you have found this experience to be both confronting and humiliating. The testimonials from your neighbour and a former work mate speak of you as a man of honesty and integrity.

36Third, this matter has been pending for many years and as such has been hanging over your head. In this time, you have not re-offended and have gone on to live your life as a law-abiding member of the community. The report from Mr Cummins details the considerable impact this delay has had upon you. He described you as being, a moderately agitated interviewee, who was embarrassed and ashamed for offending. The prospect of imprisonment had weighed heavily upon you, and Mr Cummins assessed you as being fearful of this prospect, severely anxious and moderately depressed. Further, Mr Cummins considered that you presented as a significantly traumatised, overwhelmed and agitated person and considered a diagnosis of PTSD would be appropriate. The MHARS assessment from Mr Gregory Lane detailed that you had experienced stress, distress, uncertainty and worry because of your court matters. You reported to Mr Lane that you had a reduced appetite, weight loss, a reduced ability to concentrate and focus and had essentially lost the enjoyment of your retirement years with your wife. In these circumstances, I accept the delay of this matter has had a significant impact upon you.

37I consider that you have excellent prospects for rehabilitation. You have not offended as I have said in the past or since. You have significant supports in the community by way of family, and I do not believe that you will be in any further trouble for the remainder of your life.

38I accept the medical information relied upon and acknowledge that you are a man who does not enjoy good health. You have suffered a stroke, significant and open‑heart surgery and suffer diabetes. These conditions would certainly make any term of imprisonment more difficult for you, and I have taken this into account.

Sentencing principles

39It is necessary that I acknowledge the sentencing principles of just punishment, general deterrence and denunciation. The offending before the court persisted for three years, involved a significant amount of money, and although you did not profit personally implicit in the offending is that a commercial gain was achieved for those with whom you were associated. It is the length of time and the number of dishonest transactions involved that has led me to determine that I must impose a conviction.

40In my view, specific deterrence is of little importance to you in this sentencing exercise. It is apparent you have expressed regret, the consequences of engaging in this conduct have been powerfully brought home to you and I accept you have suffered considerably as a result. You have had to deal with the shock and embarrassment of being arrested, processed and interviewed as I have said, and your many appearances in court over five years. I have no doubt that this offending has cost you dearly.  I do not believe you will offend again.

41Further your complete lack of prior history, your genuine remorse and the presence of numerous protective factors such as family and work, combines in your case to satisfy me your prospects of rehabilitation are excellent.

42The principles of proportionality and parsimony are also important considerations. They require me to make sure the punishment imposed fits the crimes committed and that I do no more than is necessary to punish you for your role in the offending. I have taken these principles into consideration in fixing the sentences I will now impose.

43I take into account the sentencing guidelines where relevant to your case, as provided in section 5 of the Sentencing Act.[2] I have had regard to the current sentencing practices and have had regard to the two comparable cases of Bacon and Tran  that were referred to by your counsel, Dr Gumbleton.[3] I have found these cases useful in terms of the principles that apply in cases such as this. Of course, each case turns on its own facts and the Court’s duty is to impose a sentence that is, in all circumstances, just and appropriate.

[2] Sentencing Act 1991 (Vic) s 5.

[3] DPP v Cameron Bacon [2019] VCC 220; Nhat Luong Tran v The Queen [2014] VSCA 85.

Disposition

44Mr Sapountzis, having indicated that I would impose a Community Correction Order, I ordered an assessment for such an order after your arraignment. You have been assessed as suitable for that order. You are convicted of the two offences before the Court, and you are ordered to undertake a Community Correction Order for a period of 16 months. This is a lengthy period and is a significant punishment in and of itself. I propose to order that you perform 150 hours of unpaid community work and that you undergo assessment and treatment for mental health issues. I propose to offset the entire amount of community work against the treatment condition.

45Given your low-risk status, Corrections do not consider supervision necessary, so there will be no supervision condition.

46In addition to the conditions that I have imposed, there are standard conditions that you must comply with.  The first and foremost is that you are not to commit any offences punishable by imprisonment during the 16-month period of the Community Correction Order, so this will hang over your head for the next 16 months. 

47You need to report within two working days after today to your nearest Corrections office, which will be the Seymour Corrections office.

48You are required to advise your supervising Corrections office of any change of address of where you are living or working within two clear working days.  It is also a term of all Community Correction Orders that you must submit to visits as directed and obey instructions and directions of the Corrections officer.  You cannot leave the State of Victoria without their prior permission.

49Mr Sapountzis, if you reoffend you will breach the Order.  If you do not comply with the condition that I have imposed, you will breach the Order.  If that were to happen, then the matter would be brought back to me, and you would potentially be re-sentenced on the charges to which you pleaded guilty.

50I can only place you on a Community Correction Order if you agree.  So, firstly, do you understand what is involved in a community correction order?

51DR GUMBLETON:  I can assure Your Honour I have spent some time explaining to him what it looks like and what his obligations are, but I'll do that before he signs it.

52HER HONOUR:  Yes.

53DR GUMBLETON:  Thanks, Your Honour, that has been signed and understood.

54HER HONOUR: Given the length of the Community Correction Order that I have imposed, I do not propose to make a 6AAA.  Thanks to both Counsel.  Can I acknowledge the hard work that's been done on both sides of the Bar table to bring this matter to resolution, and the Court is grateful for all the work that's been put in.

55COUNSEL:  Your Honour pleases.

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