| IN THE SUPREME COURT OF VICTORIA | Not Restricted | |
AT MELBOURNE
CRIMINAL DIVISION
No. 1417 of 2002
| THE QUEEN |
| v |
| FRANK DE STEFANO |
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JUDGE: | KELLAM J | |
WHERE HELD: | MELBOURNE | |
DATE OF HEARING: | 9 December 2002; 3 and 4 February 2003 | |
DATE OF SENTENCE: | 13 March 2003 | |
CASE MAY BE CITED AS: | R v De Stefano | |
MEDIUM NEUTRAL CITATION: | [2003] VSC 68 | |
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CRIMINAL LAW – Sentence – Multiple counts of theft from clients by accountant – Total sum stolen $8.6 million – Plea of guilty – “Gambling addiction”.
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APPEARANCES: | Counsel | Solicitors |
| For the Crown | Ms M.M. Williams | Office of Public Prosecutions |
| For the Accused | Mr P.A. Dunn Q.C. with Miss N. Gobbo | Lewenberg and Lewenberg |
HIS HONOUR:
You, Frank De Stefano, have pleaded guilty before me to 12 counts of theft. Each such count carries a maximum penalty of 10 years’ imprisonment.
During the period between 1978 and 19 April 2000 on which date you surrendered yourself to the authorities, you were conducting an accountancy practice in Geelong. You became a well respected member of the Geelong community during that period. You were a councillor for the City of Geelong between 1983 and 1993 and for part of that time you served as Deputy Mayor and Mayor of that City. In 1988 you were awarded the Order of Australia medal for your service to the migrant community in Geelong with whom both before and after 1998 you had a close involvement.
Accordingly, you were both well known to and trusted by many members of the Geelong community.
At least partly for those reasons of familiarity and trust, many members of the Geelong community relied upon you for financial advice and entrusted their savings to you for prudent financial management.
Thelma Farey and her now deceased husband were two such people. You had acted as accountant and financial manager for Mr and Mrs Farey for some years before Mr Farey’s retirement in 1995. The Fareys owned property at Geelong. They decided to retire to the warmer climate of Cairns for both health and lifestyle reasons. These issues were discussed by them with you. Mr Farey arranged that you would hold in trust the sums from the sale of assets held by him in Victoria. Mrs Farey, in her statement contained in the depositions, states that she and her husband placed “complete trust” in you. Between 1994 and August 1995 the Fareys deposited the sum of $524, 052.70 into what they believed was a trust account held by you. Those funds were to be held by you to finance the Fareys’ retirement in Queensland which included the purchase of land and the construction of a house at Trinity Beach.
It should be noted that in 1988 you and three others joined in the redevelopment of a site on the Gold Coast and built a restaurant there. The four of you borrowed $1.5 million from the National Australia Bank and gave personal guarantees in respect of that loan. The restaurant commenced operation…
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- R v De Stefano [2003] VSC 68
- Case
- [2003] VSC 68
- Decision Date
CaseChat Overview and Summary
The primary legal issues that the court had to address were whether the trial judge correctly assessed the mitigating effect of the defendant's gambling addiction and whether the sentence imposed was proportionate to the seriousness of the crimes committed. The court also had to consider whether the trial judge had appropriately exercised his discretion in determining the sentence.
The High Court held that the trial judge had correctly acknowledged the mitigating effect of the defendant's gambling addiction but found that the sentence imposed was too lenient. The court noted that the crimes were of a high degree of seriousness, given the total amount stolen and the breach of trust by a professional accountant. The High Court determined that a more severe sentence was warranted to ensure general deterrence and to reflect the community's sense of justice. Consequently, the appeal was allowed, and the case was remitted to the trial court for re-sentencing.
The final orders of the court were that the appeal be allowed, the sentence of imprisonment imposed by the trial court be set aside, and the matter be remitted to the trial court for re-sentencing, taking into account the appropriate weight to be given to the mitigating factors and the principles of general and specific deterrence.
Orders
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Background
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