Cancer, a COVID-19 funeral and a US family trust: The grandmother who fleeced $400k from her loved ones

A con artist who fed disturbing lies to some of her closest friends to convince them into handing over almost $400,000 has been jailed after her scam was exposed.

EXCLUSIVE

A Sydney grandmother who faked a cancer diagnosis to fleece $400,000 from her loved ones to fund a gambling addiction has been sentenced to a year in jail.

Viviana Leonor Varas, 63, was led out in handcuffs to claps from her victims after the courtroom was told of her intricate web of lies that also included falsifying her mother’s Covid-19 death.

Her custodial sentence - handed down in Downing Centre Local Court by Magistrate Christine Haskett - came as a major shock to both the victims and the police prosecutors, who had previously said a conviction to be served in the community would suffice.

“The judge saw through her,” one of her victims told news.com.au outside court.

“I came in thinking you could get away with white collar, but I left thinking they do take it seriously.”

The sentencing came after she pleaded guilty to fleecing four victims - three of which were in the courtroom on Thursday - out of a total $382,000 between September 2016 and March 2021 after telling them she would “invest” their money.

Varas with her long term defacto partner Gary Thompson. Picture: Supplied

Varas pictured prior to the court proceedings with friends. Picture: Supplied

The court heard how Varas told her victims she had a great-great-grandfather who had set up a “family trust” in the US before making up various excuses when they asked for the money back.

The court also heard she told people she was a “former Wall Street stock exchange” which was “a lie”.

Handing down her sentence on Thursday afternoon, Magistrate Haskett said she had “concerns” for the community as Varas had “no remorse” for what she had done.

Varas previously told police her victims were aware she was a gambler when they gave her the money.

She also said she was trying to “help them” by gambling their money, but denied having a gambling addiction.

“The victim blaming is outrageous,” Magistrate Haskett said.

“She has little insight into the damage that she has done to her victims and that she disagrees with police facts.”

The victims

One of the four victims was the woman’s best friend, who she met in 2016 while living in the same building as her in Pyrmont.

She told news.com.au she had even trusted Varas to help with her young family and knitted clothes for them.

“She befriended me and built up that trust,” she said.

“She just really integrated herself into my life and said you’re just like a daughter to me. She just groomed me and at my most vulnerable time.”

The victim said they were swindled by Varas, who was charasmatic and convincing. Picture: Supplied

The court heard Varas first asked her for money in 2017 for storage costs.

Over a two-year period, Varas managed to convince her to invest in her “family US trust” with the victim sending her a total $145,000.

When she asked for her money back, Varas gave the woman a cheque for $104,000 which bounced.

Varas then told her to contact her solicitor - however - when she called the number provided the man on the phone told her “he did not do that kind of work”.

She reported Varas to police in May 2018.

The court heard how she did not follow up earlier as the grandmother had told her she had cancer and was undergoing treatment in hospital.

“None of this was true, she was not undergoing cancer treatment,” Magistrate Haskett said.

Another victim met Varas at the Star Casino about 10 years ago before becoming friends. She said she sent her about $100,000 to invest across the last decade. She last heard from Varas after she deposited $30,000 into her account.

“She rang me up and said that ATO needed the tax,” she told news.com.au.

“It makes you feel really stupid. She makes it out that she’s a multi-millionaire and then when I spoke to her best friend’s family, she was just poor as anything. She’s done this to a lot of people.”

One of the "receipts" given to the victims of Varas after she claimed to have made a $50,000 deposit which never arrived. Picture: Supplied

Varas leaving a previous court date. Picture: Supplied

Another victim, a Sydney salesman, met Varas while playing poker at Star Casino. He said she was making thousand-dollar bets and asked where she got the money from.

She said she was an investor, with the man sending her $32,000.

He was able to get $5000 back from the bank, but is still $27,000 out of pocket.

“She’s just like an immoral person. A psychopath scammer,” he said, comparing the case to that of Melissa Caddick.

One victim was told her daughter was a model, while another victim said Varas said her daughter was a model.

She told one of the victims she “knew the head of the DPP” with another being told Varas was a “real estate mogul”.

The fourth victim - who was not in court - moved to regional NSW since the offending. In his victim impact statement, he said his wife had “suicidal thoughts” after the pair had their life savings of $105,000 taken by Varas.

“They are no longer the optimistic people they once were,” the statement said.

The sentence

Varas’ lawyer Mickaela Mate attempted to argue that the fraudster did have stage one lung cancer in 2015 and said she had suffered an “adjustment condition” off the back of the diagnosis which was the reason behind the offending.

However, Magistrate Haskett said she was quickly put in remission after her diagnosis and said could not be used as an excuse for telling people she was in hospital undergoing cancer treatment in 2020.

Ms Mate also said Varas did go to hospital for a kidney stone during the offending as well as “heavy nose bleeds”.

“That’s hardly cancer is it?” Haskett said.

Magistrate Haskett also did not accept a submission from Ms Mate that the offending was “not sophisticated”.

“[The lies] were very sophisticated. People were told lawyers and accountants were involved. Meetings never eventuated. The planning was well thought out,” Magistrate Haskett said.

“Lies about family trusts; lies that she worked on Wall Street. Documents that were promised but never produced. She told people she was arranging her mother’s funeral and she’s still alive.”

As part of her sentence, Varas was also ordered to pay back the costs however the court heard how she had “no assets”.

The court was told how her long-term defacto partner of 20 years - IT consultant Gary Thompson - had recently left her over the offending with her three children, including two grandchildren, also ceasing contact. Mr Thompson has been contacted for comment.

At a previous court date, news.com.au asked Varas if she wished to make a statement, however declined to comment.

She will be released from jail in May 2025.

Originally published as Cancer, a COVID-19 funeral and a US family trust: The grandmother who fleeced $400k from her loved ones