Kathy Jackson: ‘No remorse’ for union frauds

Kathy Jackson has shown no remorse for defrauding the Health Services Union of $102,000 but will serve no jail time, a court has heard.

Kathy Jackson faces sentencing over the misuse of union member funds. Picture: AAP

Kathy Jackson has shown no remorse for defrauding the Health Services Union of $102,000 but will serve no jail time and will likely benefit from her whistleblowing on union rival Michael Williamson, a court has heard.

The HSU No 3 branch re­imbursed Jackson for overseas shopping holidays with friends, DVDs and even a Charles Blackman painting that was recorded on the union books as a “conference seminar”.

Prosecutor Mark Gibson SC told the Victorian County Court that Jackson’s position as secretary of the HSU No 3 branch not only made her offending possible but gave her “the ability to disguise or camouflage” her offending.

Former HSU boss Michael Williamson. was jailed in 2014 on fraud charges.

Jackson was convicted at a trial last year in the Victorian County Court of one count of obtaining fin­ancial advantage by deception, by claiming $13,1000 for travel reimbursements for which the union wasn’t liable, and one count of obtaining property by deception, $22,000 for her husband’s Mercedes.

She pleaded guilty earlier this year to two rolled-up charges, the first relating to 23 unauthorised travel expenses worth $56,273.78, and the second including unauthorised instances of personal expenditure worth $11,519.07.

Judge Amanda Fox indicated at an earlier hearing that she would not impose an immediate jail sentence if Jackson agreed to a plea deal. The maximum suspended sentence available to the court is three years.

In sentencing submissions on Tuesday, Mr Gibson said Jackson had high moral culpability for the offending, given her role in the union and the persistence of the offending between 2003 and 2010.

Former union official and federal politician Craig Thomson was convicted on theft charges relating to union funds. Picture: Mike Keating

He said her offending had deprived HSU members of funds, but there was “no doubt Ms Jackson has done a lot of very good work over the years”.

Mr Gibson said Jackson’s whistle­blowing on union officials Michael Williamson and Craig Thomson would be taken into account in her favour without proof of an ulterior motive.

Using union credit cards, Jackson took trips across the US, Europe and Asia, accompanied by her family, partner Michael Law­ler and friends, including Bill Shorten’s then wife, Deborah Beale, David Feeney’s wife, Liberty Sanger, and the current secretary of the HSU, Diana Asmar.

The court heard Jackson travelled with her former husband, Jeff, to the US in 2003 to take up a fully funded scholarship at Harvard, charging the union for accommodation in Hong Kong and New York on the way.

She also charged the union more than $5000 at Flight Centre for a trip to Bali in June 2004 with Jeff, her daughter and Ms Sanger.

Mr Gibson said Ms Sanger had reimbursed Jackson for the trip.

Ms Beale and two other friends accompanied Jackson for a shopping trip to Hong Kong in 2005, with Jackson charging the union $879.75 for her flight. Ms Beale’s trip was not paid for by the union.

Mr Gibson said Jackson charged the union $1377 for another shopping trip to India in 2005 with Ms Asmar. The latter’s trip was not paid for by the union.

He said the union reimbursed Jackson $1983.31 in 2006 for accommodation on a trip to Hong Kong with friends recorded with the union as a conference.

Jackson took trips to New Zealand and France with her children, a trip to Hong Kong with Mr Law­ler and his son, and a trip to New York with Mr Lawler.

Personal expenses claimed included shopping for CDs and DVDs classified as general remittance expense and an entertainment unit classed as office equipment. A $4636 Blackman painting was entered on the union books as “conference/seminar”.

Mr Gibson said Jackson’s spending involved “greed, not need … There’s an absence of remorse and a lack of insight into the offending; the court will take that into account.” Jackson will be sentenced next Thursday.