R v Victor Dobing

[2025] NSWDC 233

District Court

New South Wales

• Amendment notes

Medium Neutral Citation:

R v Victor Dobing [2025] NSWDC 233

Hearing dates:

22 May 2025

Date of orders:

22 May 2025

Decision date:

22 May 2025

Jurisdiction:

Criminal

Before:

Grant DCJ

Decision:

The offender is convicted.

The offender is sentenced to an aggregate sentence of four years and nine months imprisonment, with a non-parole period of two years and six months. The sentence commences on 21 May 2025, and expires on 20 February 2030. The offender will be eligible for parole on 20 November 2027.

Catchwords:

CRIME – SENTENCING – five counts of embezzlement by clerk – offender was manager of a community bowling club and embezzled funds over a period of five years through fake invoices and unsupported expenses – total amount embezzled was $1,788,805 – offender made admissions when confronted by club board – offender suffered from gambling addiction – offender disputed total amount embezzled on sentence – late guilty plea – assessment of objective seriousness of fraud-like offences – breach of trust – strong prospects of rehabilitation – offender subsequently employed as counsellor with Lifeline and assisted others with gambling addiction – remorse and contrition – finding of special circumstances – need for general and specific deterrence in cases of white collar crime – sentence of full-time imprisonment warranted

Legislation Cited:

Crimes Act 1900 (NSW)

Crimes (Sentencing Procedure) Act 1999 (NSW)

Cases Cited:

Johnston v R [2017] NSWCCA 53

R v Todorovic [2008] NSWCCA 49

R v Mungomery [2004] NSWCCA 450

Category:

Sentence

Parties:

Rex (Crown)
Victor Dobing (Offender)

Representation:

Counsel:
Ms E James (Crown)
Ms C Akthar(Offender)

Solicitors:
Mr E Choi (Crown)
Mr D Hamilton (Offender)

File Number(s):

2019/00293670

Publication restriction:

N/A

EX TEMPORE JUDGMENT

INTRODUCTION

1. Victor Dobing appears today to be sentenced in relation to five offences of embezzlement as a clerk, contrary to s 157 of the Crimes Act 1900 (NSW). This offence has a maximum penalty of ten years’ imprisonment. There is no standard non‑parole period.

2. The offences arise out of Mr Dobing's employment as the secretary manager of the Kurri Kurri Bowling Club where, in the period from 2012 to 2017 he embezzled $1,788,805 through fake invoices and unsupported expenses. 

3. The maximum penalties for the offences are important guides in the assessment of sentence.  A judge should steer by them but not aim for them.

4. This matter was listed before me on 11 February 2025 for a contested facts hearing with an estimate of four weeks, as Mr Dobing disputed the total amount of the funds embezzled (initially alleged by the Crown to be $1,856,000) during his tenure as the secretary manager of the Kurri Kurri Bowling Club.  Mr Dobing was unrepresented during this hearing.  Mr Dobing initially contended that he had only received a benefit of about $500,000.  On 12 February, Mr Ashley McPhee (forensic accountant) gave evidence and was cross‑examined by Mr Dobing.  After the cross‑examination concluded, Mr Dobing indicated that he did not wish to proceed with the contested facts hearing.  I gave the parties an opportunity to continue their discussions.

5. On 13 February, Mr Dobing entered pleas of guilty on the basis that the total embezzled amount was $1,788,805, over approximately 255 transactions.  He is entitled to a 5% discount for the utilitarian value of his plea.  An agreed facts document was signed by Mr Dobing and the Crown. 

AGREED FACTS

6. The offender, Victor Dobing, was employed as the secretary manager of the Kurri Kurri Bowling Club from 2 October 2001.  KKBC was a bowling club located in the Hunter region of New South Wales.  It employed over 50 people.  In 2017, it recorded a turnover of $13,000,000.  The club’s main sources of revenue were gaming, food and beverage.  It had a governing committee of nine volunteers, namely,

1. Paul Gillon, president.

2. John Lavender, treasurer.

3. Dennis Bower, senior vice president.

4. Ian Brown, junior vice president.

5. Julie Neild, Bruce Hampton, Phillip Shaw, Graham Hogan and John McKerrow, who held various other roles. 

7. Mr Dobing's responsibilities included full management of day‑to‑day trading, supervising the handling and processing of cash, promotions, public relations, rostering and management of staff.  He was in a position of trust and authority.

Detection of Fraudulent Conduct

8. In July 2017 the club's auditors reviewed the audit file for the financial year ending 31 May 2017.  They identified $295,000 of outstanding deposit transactions on 31 May 2017.  Bank reconciliation required further analysis.  The auditors arranged a meeting with Mr Dobing to discuss the anomalies.  The meeting was held on 1 August 2017 at the auditor's office in Maitland.  Notes were taken of the meeting and signed by Mr Dobing.  The notes conclude with the statement, "This statement is an accurate account of the meeting."  The notes record Mr Dobing saying the following:

1. He gambled at the club through the TAB and online.

2. When on duty, he was responsible for poker machine clearances.

3. He took cash when doing poker machine clearances and used it for gambling.

4. He bet on credit and repaid portions of these debts with cash from the cash cheques.

5. No payments to TNS Construction (several of which appeared in the records) were legitimate and all that money was taken by him.

6. Some payments to Darin Godwin (several of which appeared in the records) were not legitimate, some were.

7. Some invoices for work which appeared to be performed for the club were legitimate, however, he doctored invoices for work that was never done.

8. The total amount he gambled was somewhere in the vicinity of $200,000.

9. He used a private tin so the missing money would not be obvious to others.

10. Since around 2014 or 2015 he has been trying to cover his tracks and repay some money.

11. He knew what he did was wrong and cannot explain why he did it.

12. He was very ashamed of his actions.

9. Following this meeting Mr Dobing was placed on leave with full pay pending further investigations by the club.  Mr Dobing's wife, who was employed as the bistro manager at the club, was also placed on leave with full pay.  In a signed handwritten letter to Mr Gillon dated 22 August 2017, Mr Dobing tendered his resignation effective immediately.  In a letter addressed to the board of directors dated 5 September 2017, Mr Dobing apologised for what he described as his “underhanded and sneaky actions” and said he would be moving away.  The family subsequently moved to Dubbo.

Investigation

10. On 10 August 2017, Maitland Police received a report from the club regarding the conduct and commenced an investigation.  On about 3 August 2017, the club engaged a forensic accounting firm, RGL Forensic Accountants, to investigate and quantify the financial loss sustained by the club in the period from 2012 to August 2017.  RGL published its report on 10 May 2018.  The report was prepared for insurance purposes and did not constitute an audit.  The report was based on information provided by the club's auditors, the governing committee and the bookkeeping team, and financial records such as ledger accounts, daily taking records, including cheques, invoices and National Australia Bank records.

11. The governing committee and bookkeeping team were interviewed by staff from the Office of Liquor and Gaming and their statements were adopted with jurat following interviews with New South Wales Police.  Apart from the jurat, no formal statements were taken from these witnesses by New South Wales Police.  RGL concluded that the club suffered a direct financial loss in the amount of $1,856,000, quantified from 256 separate fraudulent transactions identified by RGL, consisting of fake supplier invoices and unsupported general expenses. 

12. I add that one of these 256 transactions was disputed by Mr Dobing in the contested facts hearing (a single transaction of $11,400) which subsequently reduced the agreed total embezzled amount to $1,788,805. This is the figure that Mr Dobing is to be sentenced on.

Arrest

13. On 19 September 2019, Mr Dobing was arrested and conveyed to Dubbo Police Station where he participated in an electronically recorded interview with police (ERISP). During the ERISP, he disclosed the following had occurred during the relevant period (2012 to 2017), and made admissions that he had,

1. Bet on credit.

2. Concealed the theft of money by drafting fraudulent invoices and writing corresponding fraudulent cheques to pay those invoices from club funds.

3. Used the fraudulent cheques to reduce his gambling debts.

4. Forged Paul Gillon’s signature on some of the cheques.

5. Used the club's money to pay back the club. 

14. On 25 July 2022 he participated in a second ERISP.

General Nature of Impugned Conduct

15. Mr Dobing periodically placed bets on credit with the TAB in amounts ranging from $5,000 to over $60,000. 

16. Mr Dobing took cash from the club cash takings. 

17. Mr Dobing wrote out fraudulent cheques for work not done by third party suppliers. 

18. Mr Dobing made bets on credit in varying amounts and balanced the shortage with fraudulent cheques.  In order to conceal the taking of cash Mr Dobing engaged in the following conduct:

1. Creating fake supplier invoices from third party businesses to the club.

2. Reporting and subsequently paying these fake supplier invoices.

3. Writing cheques made out to the club in lieu of third-party suppliers and drawing against cash held in the club's account.

4. Subsequently recording these cheques in the daily cash reconciliation book.

5. Fake expense transactions.

6. Causing fake expense transactions to be recorded in the club's accounting records and writing cheques made out to the club and drawing against cash held in the club's bank account in amounts corresponding with money he took from the club.

19. A detailed summary of fake supplier invoices was created and tendered within the Crown Bundle.  In total, from 13 March 2012 to 24 April 2017 Mr Dobing embezzled $1,416,950 over 160 separate transactions.  A detailed summary of unsupported general expenses was created.  In total from 31 August 2017 to 27 July 2017 Mr Dobing embezzled $371,855 over 83 separate transactions.  The breakdown of the accounts is as follows:

1. Count 2, (62 transactions), nine general expenses, a total of 71 acts, the total amount was $438,850.

2. Count 3, (52 invoices), 11 general expenses, total of 63 acts, the total amount embezzled was $548,500.

3. Count 4, (27 invoices), ten general expenses, a total of 37 acts, the amount embezzled was $313,300.

4. Count 5, (11 transactions), 23 general expenses, a total of 34 acts, the amount embezzled was $255,450.

5. Count 6, (12 invoices), 29 general expenses, a total of 41 acts, the amount embezzled was $232,705,

20. The total amount embezzled was $1,788,805.

OBJECTIVE SERIOUSNESS

21. s 157 offences (and fraud offences generally) capture a wide range of conduct. However, the Courts have recognised several factors that generally bear upon the seriousness of s 157 and like offences. The interplay of these factors provides a helpful framework for assessing the degree of objective seriousness of this offending.

The amount of money involved

22. The offender dishonestly obtained a total of $1,788,805, which is a significant sum of money.  The loss is irretrievable.  The quantum involved represents the extent to which an offender is prepared to be dishonest.

The length of time over which the offences are committed

23. The offending spanned a period in excess of five years, from March 2012 to July 2017, which is a significant period of time.  The offending ceased when the anomalies were identified by the auditors.  Where, as here, the offending occurred over a significant period of time, the weight otherwise afforded to the offender's good character may be diminished.  The length of time particular to the offending is relevant to indicate the degree of planning involved and to show the offending was not impulsive.

The motive for the crime

24. The sheer scale of the offending and the betrayal of trust involved suggests the motive of the offending was greed and not need.  The motive was to fund Mr Dobing's gambling habit.

Degree of planning and sophistication

25. Offences committed on impulse have been distinguished from offences where there has been planning with a degree of sophistication.  Mr Dobing planned and conducted a fraud that entitled multiple interconnected acts of deception to conceal the losses incurred to the club.  He successfully concealed the fraud for over five years.

An accompanying breach of trust

26. The breach of trust was significant.  Mr Dobing used his role as a secretary manager to instruct people to place bets on his TAB account on credit.  He then made good the debt or a portion of the debt by creating fake invoices, co‑signing cheques made out to the club in the corresponding sum entered on the fake invoices using blank cheques signed by the president and at times forging Mr Gillon’s signature.  The deception occurred in the context of a community club where all board members were volunteers who placed their trust in Mr Dobing.

A breach of trust is an inherent component of the offence of embezzlement by a clerk

27. Society rightly regards embezzlement by employees, especially one that occupies a senior position such as the role occupied by Mr Dobing, who are trusted with the day‑to‑day operations of an organisation and who have oversight over the handling of cash and the power to authorise payment as serious offences.  Society expects individuals in positions of trust to conduct themselves with honesty.  The seriousness with which society and parliament regard this offence is reflected in the relatively high maximum penalty of ten years' imprisonment prescribed by this offence.

28. A breach of trust, significant as it is, is not to be taken into account additionally as an aggravating feature of this offending.  The Crown submits that the objective seriousness falls above the midrange for each of the five offences.  I disagree.  The offending is in the midrange of objective seriousness.

Gambling Addiction

29. I have regard to the fact that this offending was not committed out of pure greed but rather arose out of a gambling addiction which motivated the offender to embezzle such large amounts of money from his place of employment.  It is common for offenders in cases such as these to suffer from a gambling addiction:  R v Todorovic [2008] NSWCCA 49. Courts have consistently held that a gambling addiction is not a factor which can be taken into account in mitigation at sentence even when the condition is pathological: Johnston v R [2017] NSWCCA 53 at [36].

30. In Johnston the Court held that a gambling addiction generally does not reduce an offender's moral culpability where the offending occurs over an extended period of time, as the offender has had a degree of choice as to how to finance their addiction.  I take into account the offender's gambling addiction only to the extent that it contextualises the offending.  It is a relevant consideration in the assessment of the offender's prospects of rehabilitation and likelihood of reoffending.

CRIMINAL HISTORY

31. Mr Dobing has a very minor criminal history.  He was charged with an offence of assault with act of indecency in 1999, which was dismissed.  He was sentenced to a Community Correction Order on 9 January 2019 for an offence of drive with high range PCA, first offence.  This was after he was dismissed from the club.  He is entitled to leniency.

SUBJECTIVE CIRCUMSTANCES

32. I have taken into account the sentencing material tendered on behalf of Mr Dobing.  Mr Dobing has given evidence before me today on the following topics:

1. His actions since first speaking to the police (in 2019).

2. The development of his remorse and insight in the seven years since his offending was discovered.

3. The weight upon him in contemplating the impact of his impending incarceration upon his family, particularly his father, wife and son.

33. Mr Dobing's post‑offence conduct demonstrates an exceptional level of accountability and efforts to atone for his offending in the eight years since it came to light in 2017.

34. He has been described as a powerful agent for good in the sentence materials.  Mr Dobing also suffers from a number of mental health conditions, namely, Generalised Anxiety Disorder, Major Depressive Disorder, Gambling Abuse Disorder and Alcohol Use Disorder.  After leaving the club in August 2017, Mr Dobing immediately commenced both employment and psychological treatment.  Mr Dobing worked for Dubbo Powder Coating for three years between September 2017 and 2020.  He has since moved back to the Kurri Kurri area after his relocation to Dubbo in 2017, and is by all accounts an active and positive contributor to the community there. He commenced counselling in October 2017 through Lifeline and continued this counselling until 30 June 2021, completing 41 sessions or approximately one session per month.  He was concurrently treated by Rebecca Stuart, psychologist, from 2017, and Tim Manning, psychologist, from November 2019 until the end of 2022.

35. A psychological report was tendered on his behalf, authored by Ms Kris North and dated 15 May 2025. Ms North considered there was a direct connection between Mr Dobing's depression and gambling behaviours and his offending (his son experienced health issues at the time of the offending, and there was evidence that he experienced depression and other mental health conditions connected to his son’s health issues and his ability to cope with them).  Mr Dobing commenced engagement with Gamblers Anonymous since early 2019.  By late 2019, he held the position of secretary in Gamblers Anonymous.  He commenced working with Lifeline as a counsellor in January 2022.  By June 2022, he had completed a diploma of counselling, awarded by TAFE New South Wales.  Later that year he completed further nationally recognised training in financial literacy education.

36. During 2022, Mr Dobing worked in collaboration with organisations on a Toward Zero project directed at suicide prevention focused on males, speaking with honesty and sincerity about his actions and expressing his remorse to more than 100 young people.  A character reference of Father Nicholas Scordilis attests that Mr Dobing has demonstrated commitment to sharing his experience with others in the community.  Lifeline attest to approximately 1,850 counselling sessions conducted by Mr Dobing and more than 100 persons who Mr Dobing has assisted through his work with their organisation.  Ms Rowan, secretary of the Kurri Kurri Minor Rugby League, spoke of Mr Dobing's positive leadership for young men in his local area.  Other references such as that of Gabriel Schultz attest to the genuine nature of Mr Dobing's rehabilitation, remorse and contrition.

CONTRITION AND REMORSE

37. I am satisfied on the materials before me, including the evidence of Mr Dobing, that he has demonstrated genuine contrition and remorse.  His participation in the disputed facts hearing does not lessen his contrition and remorse.  He believed he had a genuine dispute over quantum.  After cross‑examination of Mr McPhee, and hearing the evidence of the second expert, Mr Matthews (auditor), he resolved with the Crown the amount that he embezzled.  The disputed facts hearing was listed for 30 days. It went on for one day, and on the second day, the matter was briefly mentioned, and I gave the parties the balance of the day to continue their discussions.  It occupied a short period of the Court's time.

PROSPECTS OF REHABILITATION

38. The offender, through his hard work and counselling, has rehabilitated himself.  This is borne out by the length of time he has spent in the community without further offending (some eight years).  He has ceased gambling and assists others who struggle with this condition.  He has excellent prospects of rehabilitation.  I am confident that he will not be before a court again.  Ms North and the sentence assessment report author have assessed him as at a low risk of reoffending.

SENTENCE

39. I take into account the principle of totality.  It is well said that general deterrence is an important sentencing factor for offences of this nature.  Such crimes frequently involve a serious breach of trust and are usually only able to be committed because of the previous good character of the person who has been placed in the position of trust.  The difficulty in detecting and successfully prosecuting white collar crime is another reason general deterrence is important.  As observed by Hulme J in R v Mungomery [2004] NSWCCA 450 at [41]:

"Organisations, be they business or government, cannot operate effectively without placing a good deal of trust in their employees.  Opportunities for the abuse of that trust are legion, and breaches are often difficult to detect.  Commonly offenders are able to continue their depredations for long periods.  Often matters only come to light when the total amounts involved become too large to be overlooked.  It seems to me an inevitable inference that there must be many cases where offending is never discovered, a factor also arguing for sentences which are substantial deterrents."

40. Denunciation and retribution have a role to play in this sentencing exercise.  I find special circumstances and there will be a generous reduction of the statutory non‑parole period due to the offender's age, his considerable efforts towards self‑rehabilitation and future prospects.  The Crown does not argue against a finding of special circumstances, nor did the Crown wish to be heard in relation to special circumstances amounting to approximately 52% of the head sentence.  The indicative sentences have been reduced by 5%.

ORDERS

41. The indicative sentences are as follows:

1. Count 2, (71 acts), a total of $438,850, two years and nine months.

2. Count 3, (63 acts), a total of $548,500, three years and six months.

3. Count 4, (37 acts), a total of $313,300, two years and two months.

4. Count 5, (34 acts), a total of $255,450, 18 months.

5. Count 6, (41 acts), an amount of $232,705, 17 months.

42. I impose an aggregate sentence of four years and nine months which will expire on 20 February 2030.

43. I impose a non‑parole period of two years and six months, which is 52.6% of the head sentence in accordance with my finding of special circumstances.  Mr Dobing will be eligible for parole on 20 November 2027.

**********

Amendments

24 June 2025 - Spelling of counsel's surname corrected

Decision last updated: 24 June 2025