Former MP Russell Northe jailed for gambling taxpayer dollars

Disgraced former MP Russell Northe has been jailed for blowing 180k of taxpayer money on gambling bets in crimes a judge described as “sophisticated, protracted and brazen”.

Former MP Russell Northe has been jailed. Picture: Nicki Connolly

Disgraced ex-MP Russell Northe has been jailed for gambling away $180k in taxpayer cash in crimes a judge described as “sophisticated, protracted and brazen”.

The former member for Morwell, 57, was jailed for 21 months in the County Court on Wednesday, and will be eligible for parole within 12 months.

Judge Michael McInerney said, “Having regard to the gravity of your offending I have decided that the only appropriate sentence ... is that of imprisonment.”

“In my view, no other sentence would be appropriate.”

The former MP served as a member in the Victorian Legislative Assembly for 16 years. Picture: Wayne Taylor

That comes despite “powerful mitigation” submissions about the impact on his mental health if he were jailed and an increased risk of suicide, with Northe currently in inpatient at Delmont Private Hospital.

But Judge McInerney found he could receive treatment behind bars, and called for Northe to be put on suicide alert while in custody amid concerns for his mental health.

“I must rely on Corrections to provide appropriate care for you in jail,” Judge McInerney said.

His Honour noted Northe would continue to be able to access a psychologist while in custody via the Parliamentary Employee Assistance Program or the Workers Compensation Scheme.

When handing down his sentence, Judge McInerney told Northe he did not need to stand as is usual practice, “given your current condition”.

Had Northe not pleaded guilty, he would have been jailed for a maximum 36 months, with a minimum of 22 months.

“Good luck Mr Northe, if you could take Mr Northe down please,” Judge McInerney told the custody officers.

Russell Northe arrives at County Court of Victoria for his sentencing. Picture: Nicki Connolly

It comes after the former MP pleaded guilty to two charges of misconduct in public office after taking taxpayer cash for administration expenses and transferring it into his Tabcorp and Ladbrokes accounts.

Northe, who was serving as an Independent from 2018 following a lengthy career with the Nationals, was offered $200k a year for administration expenses, utilities and travel from the Victorian Electoral Commission.

Any unused cash via the Administrative Expenditure Funding was expected to be returned.

But he created fake expenses for rent for his political office, for an admin assistant and a printer in 2019, and wired $144k to his Tabcorp and $35k to his Ladbrokes accounts.

In a single year, he lost $220k in bad bets, with the majority of that – $179k – being taxpayer cash.

An IBAC probe, ‘Operation Sturt’, resulted in him being charged with 45 offences but they were reduced to two offences upon a guilty plea in May.

Judge McInerney said Northe‘s crimes were “complex” in that he used fake invoices and fake bank statements to dupe an auditor into approving his false expenses.

“I find that your criminality was sophisticated, protracted and brazen in that you must have presumed, given your standing Mr Northe, that your applications (for expenditure funding) would not be checked,” His Honour said.

“You used your office as a means of hiding the manner in which you committed these crimes.”

His Honour told the court the background to Northe‘s offending “may well have begun” in 2006 when he was elected to the seat of Morwell, with his regular travel causing ”geographical isolation” that led him to becoming socially isolated and finding his role as minister and family man ”difficult”.

Despite being an “excellent member”, Judge McInerney said he abused alcohol because of his social isolation, which led to him gambling to an ”excessive degree”.

Some poor financial decisions then led to further gambling in a bid to recoup his losses.

Judge McInerney agreed with Northe‘s lawyers that his prospects of rehabilitation were high, and noted his early plea, his genuine remorse, and the extra-curial punishment he’d suffered through the “personal humiliation” of media reporting.

But the judge assessed his culpability on both charges as “being in the upper level”.

Upon Northe‘s release from jail, Judge McInerney said he would not require him to be supervised, as His Honour expected the ex-pollie would be able to obtain a job and continue his voluntary contributions.

Northe served in the Victorian Legislative Assembly for 16 years.

Recently he has been working as a duty manager at Coles earning $700 a week and living in a share house in Cowes after leaving Gippsland where he was “crippled by shame”.

The offence of misconduct in public office carries a maximum 10 years jail.