Mulwala, Yarrawonga: Kaye Leanne Ferguson avoids jail for $1.1 million fraud

A “lonely” divorcee spent 60 days pilfering money from the heart of a regional town, the Mulwala Ski Club, but the CEO and locals say she deserves forgiveness.

The financial officer responsible for defrauding the Mulwala Water Ski Club of $1.1m — threatening its very existence — has been forgiven by its CEO and those who call the regional town home.

Kaye Leanne Ferguson was sentenced to a three-year intensive corrections order in Albury District Court on Tuesday after she pleaded guilty to pilfering money from the business.

Across 60 days in 2020, the court heard, she transferred $1.1 million of the club’s money into offshore bank accounts.

The divorcee broke down in court when she explained she did it because two fraudulent lovers she met separately online told her they needed money to cover their outlandish allegations including that employees of theirs had died.

Outside of court, Mulwala Ski Club CEO Peter Duncan said he had “no animosity” towards Ms Ferguson despite her actions having disastrous consequences to the business which has served the community since 1983.

“I feel no animosity towards her,” Mr Duncan said.

He said he had worked closely with Ms Ferguson for 10 years and was surprised by her sentence.

The Mulwala Water Ski Club was busy on Friday despite it having lost $1.1m. Picture: Hannah Davies.

Ted Gent, 70, has been visiting Yarrawonga for more than 20 years and said the club was popular.

“When we go for dinner it’s always busy,” Mr Gent said.

“I think they’re very lucky in the sense that they had enough money to survive it.

“It would be devastating for the community.

“She was lucky not to go to jail.”

Mr Gent is on the social board for the Hastings Football Netball Club and said if the same had happened to his club, it would destroy them.

Kaye Leanne Ferguson apologised directly to Mr Duncan in court.

An elderly couple living from Yarrawonga said they felt sorry for Ms Ferguson given her reasons.

“We heard about it last year and were quite shocked,” the wife said.

“But the club seems busy as always.

“Obviously last year with Covid it was affected anyway, but I feel there’s more reason to visit than before after what happened.”

The couple said they were familiar with online scammers but were still horrified at their power.

“She’s had a lot of support here,” the husband said.

Another Mulwala resident, who asked to remain anonymous, said the community had suffered as a result.

“It’s a marvellous club and anything that affects it affects the whole community too,” he said.

“They’re fantastic for the community, always donating things and they’ve got a great involvement in the history of the club.”

After opening in 1983, the club has formed a strong connection to several organisations including the Corowa Rutherglen Football Netball Club.

A local business owner said Ms Ferguson and her sister were well-liked in town.

“The club seems fine, it's still busy, especially on weekends there’s always people there,” she said.

At Ms Ferguson’s sentencing on Tuesday, Judge Sean Grant said she was “sad, lonely, depressed and vulnerable” when she fell victim to the scam.

“The desire for a relationship … is a part of the human experience,” Judge Grant said.

“Catfishes and dating scammers are sophisticated ... she too is a victim.”

Victim or not, locals are adamant one thing is for certain — they will do everything they can to help the ski club return to its former glory.