Health Services Union associates ordered to pay back $8 million

THE mistress of former Health Services Union boss Michael Williamson has been ordered to repay almost $4 million allegedly rorted from the union.

Confessed HSU fraud Michael Williamson and his former mistress and HSU employee Cheryl McMillan.

THE mistress of former Health Services Union boss Michael Williamson has been ordered to repay almost $4 million allegedly rorted from the union.

In total former associates of the disgraced HSU boss were ordered to repay more than $8 million.

On Thursday the NSW Supreme Court ordered former union procurement manager Cheryl McMillan to pay the HSU $3.7 million following an early 2005 scheme in which the company Access Focus invoiced the union for supplies at an inflated rate.

The union was also trying to recover an extra $611,000 in misappropriated funds from McMillan, which the court heard was deposited in a bank account between 2005 and 2011.

Justice Richard White said this would amount to a double recovery.

But he ultimately found in favour of the HSU and ordered McMillan to pay $3,775,806.13 to the union — an amount that also included interest and court costs.

“She also was a recipient of bribes. The bribes she received were a component of the losses that the union suffered,” Justice White said.

Access Focus owner Alf Downing has also been ordered to repay the union $4,328,492.70, which like McMillan’s penalty includes interest and court costs.

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From left to right: Mistress Cheryl McMillan (far left) with Alfred Downing (far right) and John and Carron Gilleland.

Williamson was jailed in March for five years for defrauding millions of dollars from the HSU.

A judgment of $5 million was made against him in October last year but he reportedly declared bankruptcy.

Downing and McMillan have both filed petitions seeking to be declared bankrupt, the HSU said.

The HSU has been rocked by corruption scandals in recent times with former federal MP Craig Thomson found guilty of defrauding the union.

He is appealing against a three-month jail sentence, with a decision expected on Monday in Melbourne.

RELATED: Thomson lied about prostitutes because he was embarrassed

HSU NSW Secretary Gerard Hayes told AAP he was pleased with McMillian decision.

“We have pursued these people for the past two years and this case shows the extent of the funds that were taken from HSU members,” said HSU NSW Secretary Gerard Hayes.

“We intend to continue with other forms of recovery action.” The court was told the long-running scam involved Downing getting 50 per cent of the inflated invoice, while Williamson and McMillan would split the remaining 50 per cent.

McMillan was not present in court on Thursday, nor did she mount a defence to the union’s claim.