R v Mavridis
[2015] VCC 1590
•12 November 2015
| IN THE COUNTY COURT OF VICTORIA | Revised (Not) Restricted Suitable for Publication |
AT MELBOURNE
CRIMINAL DIVISION
CR-14-01434
| DIRECTOR OF PUBLIC PROSECUTIONS |
| v |
PETER MAVRIDIS
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JUDGE: | HIS HONOUR JUDGE PUNSHON | |
WHERE HELD: | Melbourne | |
DATE OF HEARING: | 9 November 2015 | |
DATE OF SENTENCE: | 12 November 2015 | |
CASE MAY BE CITED AS: | R v Mavridis | |
MEDIUM NEUTRAL CITATION: | [2015] VCC 1590 | |
REASONS FOR SENTENCE
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APPEARANCES: | Counsel | Solicitors |
| For the DPP | Mr R. Pirrie | Commonwealth DPP |
| For the Accused | Mr H. Rattray | Stary Norton Halphen |
HIS HONOUR:
1 Peter Mavridis, you have been found guilty by a jury of 23 charges of obtaining a financial advantage by deception and ten charges of furnishing false information. The offending began in early 2009 and continued for most of that year.
2 The prosecutor, Mr Pirrie, summarised the circumstances of the offending by reading from a written 'Summary of Plea Opening', which was tendered. There was no issue concerning the facts upon which I should sentence you.
3 Your offending concerned the operation of a Debtor Finance Facility between a group of companies, which you managed, and the National Australia Bank (NAB). You were the sole director and secretary of each company in the group.
4 Concerning the charges of obtaining a financial advantage by deception, you obtained access to credit in the total sum of $4,834,514.06 from the NAB by falsely representing in invoice statements sent to the NAB that all of the invoices listed in the attachments to those invoice statements were genuine invoices. In each invoice list, one or more of the invoices listed was either inflated in value or not owed at all. The total value of the listed invoices that were either false or inflated in value was $2,218,871.38.
5 You are to be sentenced as a Continuing Criminal Enterprise offender on these charges of obtaining a financial advantage by deception. This is to be entered into the court records. Being sentenced as a Continuing Criminal Enterprise offender also means that the maximum penalty for these offences to which you become liable is twice the prescribed maximum term of ten years, that is 20 years. However, appellate direction has made it clear that a court should not automatically impose a higher sentence simply because the offences are Continuing Criminal Enterprise charges attracting a higher maximum. [Arundell 2003 VSCA 69; Grossi 2008 VSCA 51; Faneco 2009 VSCA 110; Abela 2014 VSCA 266]
6 Concerning the charges of furnishing false information you provided false Certificates of Debtors to the NAB in that debts listed in the attachments to those Certificates were not owed by the named entities, or were inflated in value, or were otherwise ineligible for funding.
7 Written submissions were provided by both parties. Submissions on behalf of the defence were marked as Exhibit 1 and those on behalf of the prosecution were marked as Exhibit B.
8 On your behalf it was accepted that the offending was serious and that I must impose imprisonment; however, it was argued that the total effective sentence need not exceed three years and that I should then either wholly or, if that submission is rejected, partially suspend the sentence. The prosecution submitted that immediate imprisonment must be imposed and in any event the total effective sentence should exceed three years leaving no capacity to suspend the sentence in whole or in part.
9 Mitigating features emphasised by your counsel included your previous good character; delay before proceedings were commenced against you; the global financial setting in which the offending occurred and the fact that the offending was committed to sustain your company group rather than a desire for personal greed or personal profit to support a lavish lifestyle; your rehabilitation prospects and the unlikelihood of you further offending; the very significant loss you have suffered already to your reputation and your financial status and prospects. These matters are all relevant to penalty.
10 A body of character evidence was relied upon both at trial and on the plea. You are held in high regard by others and this bodes well for your rehabilitation. You have contributed much to community organisations. Specific deterrence remains relevant and the sentence I will impose is intended, in part, to deter you from further offending. In the end, I think your counsel is correct (to this extent concerning submissions relating to your rehabilitative prospects*) that I am justified in having confidence that you should be able to put this episode of dishonest conduct behind you and lead a law-abiding life. (*Revision)
11 Although you are not entitled to the reduction in sentence that those who plead guilty are entitled to, you must not be punished for pleading not guilty. In addition, I accept that you should benefit for giving instructions to narrow the issues in the trial and make the admissions you did which facilitated the smooth running of the trial and reduced its length and complexity.
12 You are 43 years old and were born in Melbourne to Greek parents who supported you throughout the trial. One of your sisters also attended for much of the trial. Your family is law-abiding and clearly distressed by your situation. You were a good student and obtained a Business Degree and following that a Master's Degree in Finance. You also completed a company director's course.
13 I accept that you have worked hard all your life beginning as a young teenager, continuing whilst you were a student and then in banking followed by work in the energy industry, including work overseas, before starting your own company which was built into a multimillion dollar IT service provider; the S Central Group.
14 I accept that you have lost much as the result of your offending. You identified very closely with your business. The financial and personal damage you have brought upon yourself has been very considerable.
15 You have been married twice. Your first wife, with whom you had two children, was a partner with you in S Central, but your marriage ended around the time of the collapse of S Central. You remarried in 2014; however, this marriage ended within a relatively short time after you were charged. This was due to the adverse publicity your received.
16 You have struggled to find consistent work since the collapse of S Central. I was informed that on conviction you will be disqualified from being a company director for a period of five years. You were the personal guarantor for debts arising out of the finance facility. You have resisted bankruptcy to date, but your counsel noted that bankruptcy was likely in the future. I accept that it is likely to be difficult for you to find employment in finance business and use your considerable skills given the dishonest offending in which you have engaged.
17 Prison will obviously be difficult for you given your background. Additionally, you have some physical conditions that may trouble you in prison. You have also been attending a psychologist and are being treated for depression and anxiety and require medication. You will of course have the additional worry of being separated from your children.
18 Your counsel submitted that the better guide to assessing the quantum of your offending is the value of the false invoices. He also argued that it is difficult to determine with precision the loss to the bank or the gain to you. I accept these submissions; however, the prosecution correctly submitted that the amounts involved are nevertheless very substantial.
19 The period of the offending was extended and the dishonest presentation of material was deliberate, repetitive and systematic.
20 You used and exploited your employee, Mr Cologna, who had much less financial skill than you. He was significantly affected by this, as demonstrated by his evidence and the complaints he made to a human resources manager at the company around the time of the offending when he said he was uncomfortable with what he was being asked to do in relation to the debtor-finance facility. He said this was compromising his values or his ethics and that was not sitting very well with him.
21 The prosecution submissions concerning the general sentencing principles for what is sometimes referred to as 'white collar offences' were not challenged. On your behalf it was conceded that general deterrence is very important. People who commit crimes such as yours are often of previous good character and highly regarded. They are usually trusted by those with whom they do business, this being an essential hallmark of business relations. It is, in part, this trust that emanates from previous good character that facilitates the capacity to deceive. Denunciation of your conduct is an important sentencing factor.
22 The passage of time since the commission of the offending is substantial. Delay in the prosecution of crimes such as yours is not unusual. Time is often required for a thorough investigation of complex financial matters. Mr Cologna was charged in late 2012. He pleaded guilty and was sentenced in late 2013. You were not charged until early 2014. Mr Cologna undertook to give evidence against you and he was vital to the success of the prosecution case against you. You were committed for trial in August 2014 and your trial began before me in September this year. Your counsel emphasised that you have been subject to the risk of being found guilty of serious offending for several years during which time your personal and financial welfare has deteriorated. I accept that you have lived with this pressure for a long time and now face a substantial term of imprisonment.
23 Mr Cologna pleaded guilty to five charges of falsification of books pursuant to the Corporations Act 2001, which is Commonwealth legislation. The maximum penalty for each offence was two years' imprisonment. He was sentenced to a total effective term of 12 months' imprisonment but was released immediately upon recognisance to be of good behaviour for two years.
24 The charges to which he pleaded guilty relate to the same subject matter as the 23 charges of obtaining a financial advantage by deception of which you have been found guilty.
25 Mr Cologna was actively involved in the conduct that constitutes the charges of Furnishing False Information; however, he was not charged with these offences. The maximum penalty for the offence of Furnishing False Information is ten years' imprisonment.
26 Mr Cologna received sentencing discounts for his pleas of guilty and his cooperation with authorities including his undertaking to give evidence against you.
27 The sentencing judge stated that but for his pleas of guilty and undertaking he would have been sentenced to two years and 6 months imprisonment and would have been required to serve one year and three months before being released on parole.
28 Mr Cologna was sentenced on the basis that his role in the offending was a subordinate one and that he acted under your direction. The sentencing judge considered that the evidence of remorse and good character was very strong and that his remorse was evident from an early stage.
29 I accept that you were intimately involved in the deceptions, you instigated the process to deceive the bank and that you supervised and controlled the process. The benefits were intended to support the companies of which you and your then wife were the major shareholders.
30 It was conceded by the parties that I am able to impose an aggregate term of imprisonment and that is what I intend to do.
31 You will be convicted of all charges and sentenced to an aggregate term of imprisonment for four years and eight months. You are to eligible for release on parole after serving three years.
32 You were remanded in custody last Monday and have now served three days pre-sentence detention. This is to be reckoned as time already served under the sentence I have imposed.
33 Thank you, Mr Mavridis. You can sit down.
34 MR PIRRIE: If Your Honour pleases. I have that notice of discontinuance to file. I will announce the discontinuance in relation to Charge 35 and file the notice of discontinuance.
35 HIS HONOUR: All right. We will enter that into the court records. There is nothing else, gentlemen?
36 MR PIRRIE: No, Your Honour.
37 HIS HONOUR: All right.
38 MR RATTRAY: Your Honour, if I just raise one matter.
39 HIS HONOUR: Yes, Mr Rattray.
40 HIS HONOUR: I have got a couple of documents here in relation to Mr Mavridis' medication. My instructions are that he has not been receiving it. Could Your Honour mark at custody management - - -
41 HIS HONOUR: I will make sure that the custody documents are marked that he requires medication.
42 MR RATTRAY: Certainly, Your Honour. I can - - -
43 HIS HONOUR: Do you want me to specifically mention anything about them?
44 MR RATTRAY: I have got the - there is a letter from his doctor that has his medication summary on it, if that would assist anyone.
45 HIS HONOUR: I will ensure that that is provided to the prison authorities.
46 MR RATTRAY: Thank you, Your Honour. I will tender those.
47 HIS HONOUR: Thank you. You will understand I have got no control over that.
48 MR RATTRAY: Of course not, Your Honour, no.
49 HIS HONOUR: I can only make that known to the prison authorities.
50 MR RATTRAY: I have just indicated to my client that you are - yes.
51 HIS HONOUR: Very well. I will leave the Bench. Thank you.
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