Former Australian MP Russell Northe was slapped with a prison sentence after using his position to gamble with taxpayer money. The court handed the ex-politician a 21-month sentence in spite of his ongoing mental health problems.

Northe is a former Victorian MP who became a member of the Nationals’ parliament in 2006. However, he left the party in 2017 because of mental health problems. Despite that, he didn’t quit politics and was elected as an independent a year later.

As an independent, Northe was allowed to use taxpayer money to cover expenses. Unfortunately, the 57-year-old man couldn’t resist the temptation that access to such money offered and misused it to gamble.

According to the lawsuit, the former MP created fake invoices and bank statements in an effort to cover up his tracks. Over two years, he claimed AUD 173,400 (roughly $109,900 in USD) in fraudulent expenses. Northe directed the money to his Tabcorp and Ladbrokes accounts and lost all of it by placing thousands of losing bets.

Northe was originally charged with this crime in September, following an investigation by the Independent Broad-based Anti-corruption Commission (IBAC). A year later, the man pleaded guilty to two charges of misconduct in public office.

Northe’s Addiction Was Caused by Stress and Isolation

Northe’s gambling problem was likely due to the mental health problems he experienced. Described as a sophisticated man by Judge Michael McInerney, the ex-MP struggled with isolation because of his position.

Northe was notably geographically isolated from his family, causing him to develop addictive tendencies. He incurred further stress because of Australian wildfires, which worsened his condition. Despite being described as a hardworking MP, Northe eventually became addicted to alcohol and gambling.

Unfortunately, the defendant was not a very good gambler either, eventually racking up debts totaling $400,000 ($253,500 in USD).

Northe’s condition caused further concerns about his sentence. Christin Tom, the former MP’s lawyer, pointed out that the sentence may worsen Northe’s condition. However, Judge McInerney pointed out that these mitigating factors had been taken into consideration. In addition, the former MP will have to serve a minimum of 12 months in prison before being eligible for parole.

The post Former Australian MP Jailed for Gambling with Taxpayer Money appeared first on Keno Wizard.

An investment advisor previously employed by Wells Fargo, based in Union County, New Jersey, has been handed a three-year and six-month prison sentence for orchestrating a sophisticated financial fraud scheme, resulting in a total loss of $626,478 for five clients. 

Exploitative Financial Advisor Preys on Vulnerable Clients

The 39-year-old defendant manipulated the trust of his victims, taking advantage of their vulnerabilities, with some being elderly, disabled, or grappling with memory loss. He convinced his clients to transfer money from their brokerage accounts to personal accounts, under the guise of making investments on their behalf. 

However, instead of utilizing the funds for their intended purpose, he funneled the money through a convoluted network of entities linked to friends and family members, ultimately redirecting the funds back to himself.

Federal prosecutors revealed that the defendant had also built excessively personal relationships with his clients, further abusing his position as an investment advisor. This manipulation extended to three siblings, aged 83, 86, and 93, all living together. Despite sharing holidays and personal moments with them, the Wells Fargo advisor continued his fraudulent activities unabated.

The scheme began to unravel when the siblings grew suspicious of the lack of investment returns and confronted the defendant. In response, he sent them falsified documents purporting to show their funds in a separate brokerage firm. This deception was quickly debunked by the alleged brokerage firm, confirming the fraudulent nature of the claims.

Justice Served as Wells Fargo Collaborates in Investigation and Reimburses Victims

During the investigation, Wells Fargo cooperated closely with the authorities, highlighting its commitment to upholding the highest ethical standards for its employees. In addition to cooperating with the investigation, Wells Fargo fully reimbursed the victims, mitigating some of the financial harm caused by the rogue advisor’s actions.

The trial concluded with a guilty plea to one count of wire fraud and securities fraud. The plea deal helped the defendant avoid a potential maximum sentence of two decades behind bars. The sentencing was presided over by US District Judge Madeline Cox Arleo, who imposed not only the prison term but also a three-year supervised release period.

Gambling addiction often drives people to commit fraudulent activities. Another recent case saw a former accountant in Australia admitting to over 100 charges for using clients’ funds to support his gambling addiction. He allegedly defrauded the Australian Tax Office and clients of more than AU$1.4 million ($937,000) over five years. He moved money between clients’ accounts and a personal “fraud account,” using these funds for online gambling, including betting on races.

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