Frances Walshe pleads guilty to stealing nearly half a million dollars from Melbourne High

A Melbourne High School business manager who spent almost a decade funnelling hundreds of thousands of dollars into her personal account has faced court.

Frances Walshe, former business manager at one of Melbourne's most prestigious selective schools, faced the Victorian County Court on Thursday. Picture: Luis Ascui

A Melbourne High business manager has blamed her rampant gambling addiction and marriage breakdown for nicking more than $400,000 from the prestigious school.

Frances Walshe, 65, pleaded guilty at the County Court on Thursday to 10 charges of theft and obtaining a financial advantage by deception.

The grandmother’s offending spanned nearly a decade, with Walshe funnelling more than $350,000 into her personal bank account by making 236 transfers between 2012 to 2021.

Walshe also swindled more than $77,000 into her account by altering details on invoices, pocketing money which had been owed to the government school from 2016 and 2021.

Melbourne High, in contradiction with Department of Education guidelines, had a “single-tier authorisation method” which meant Walshe did not need anyone’s permission to make bank transfers.

Frances Walshe pleaded guilty in Melbourne’s County Court to 10 charges of theft and obtaining a financial advantage by deception. Picture: Luis Ascui

Prosecutor Lauren Gurry told the court she hid evidence of her crimes by using white corrective fluid to cover references to her bank account on financial documents, with the white markings disappearing when photocopied.

The offending was uncovered in 2021 after newly-appointed principal Dr Tony Mordini expressed concerns about “poor financial governance” and wished to be granted access to the school’s bank accounts.

The discovery of Walshe’s transfers over the previous 12-month period prompted school officials to drag her into a meeting in November.

“She immediately admitted to those present that the (personal bank account) belonged to her … and that she had been experiencing a problem with gambling,” Ms Gurry said.

The Herald Sun in June last year revealed that the former business manager was facing the theft-related charges, after a further investigation unearthed the hundreds of transfers Walshe had made prior to 2021.

Walshe was supported by her three children at the County Court on Thursday. Picture: Luis Ascui

The stolen funds – totalling $435,546 – are yet to be paid back, with the prosecution seeking a restitution order.

However, the 65-year-old is currently unemployed and heavily relies on her three children, who were in court on Thursday, for financial support.

Walshe, donning a black cardigan over her slim frame, sat in the dock during her plea hearing, quietly uttering “guilty” when each charge was read out.

Defence lawyer Hayden Rattray said he had to “reluctantly” concede the only appropriate sentence would be a term of imprisonment, but noted her offending did not cause a “catastrophic consequence”.

He told the court Walshe, who has four grandchildren, was “abruptly” left by her second husband after he travelled to the Philippines in 2012 for a boys trip and met another woman.

After that, she found herself “gravitating” towards the pokies, with a gaming venue located across the road from her home.

An ‘abrupt’ end to Walshe’s second marriage had pushed her towards the pokies, the court heard. Picture: Luis Ascui

Walshe resigned from her position at the school in November 2021. Picture: Luis Ascui

“(The poker machines) provided some of the only solace that she enjoyed,” he said.

“She looks back at it now and appreciates that it … got out of hand extraordinarily quickly.”

But Mr Rattray said although it made minimal difference, Walshe used the stolen funds to pay for her living expenses, while she fed her salary into the pokies.

The admitted thief, who oversaw the school’s $20m annual budget, resigned from her position at the November 2021 meeting, where she apologised for the “grief” she caused.

“She was proud of being employed in that role,” Mr Rattray said.

Melbourne High School, which dates back to 1854, has 150 staff and approximately 1300 male students from year nine to 12.

Its revenue comes primarily from the state and federal governments, buoyed by $3.5m in student fees and parent contributions.

During her tenure at Melbourne High, the business manager was praised in the school’s annual report for maintaining “the school finances and records in a most efficient and effective manner”.

Walshe’s bail was extended.

She will be sentenced by Judge Peter Lauritsen on March 6.