A MILDURA accountant who stole more than $7 million only to forward the money to a long-time friend and which has never been recovered will spend at least the next four years in jail.
Supreme Court Judge Betty King said 62-year-old Bruce Richard Penny had been held in high esteem within the community, but his offending had brought shame, humiliation and rejection on himself and his family and any credibility he did have had been lost.
Justice King said that while she was confident Penny had very good prospects for rehabilitation and would not reoffend when released from custody, his criminality required “significant punishment”.
The judge said that even after suspicions grew about his accounting practices, Penny continued to fund John Edward (Ted) Allen – who had been the best man at his wedding – through unauthorised and unsecured loans.
She said she still had no explanation as to why Penny forwarded the millions of dollars to Mr Allen, who had no other link to the bogus loans other than his friendship with the accused.
Penny’s plea hearing on Monday was told that he lived an almost double life for 12 years when he stole from a legitimate investment business using unidentified accounts and alleged borrowers while engaging in significant community work.
He admitted 19 charges including eight counts of theft, two counts of falsifying records required for accounting and nine counts of obtaining financial advantage by deception.
Justice King yesterday said the counts of theft amounted to $7,027,510, while the falsifying of accounts totalled $429,845.
She said Penny obtained financial advantage by deception through the evasion of debt.
“How you were able to get away with this for as long as you did is a matter of some amazement to me,” Justice King said.
“One of the major reasons, I presume, that this was able to continue unabated was that you were a trusted friend and confidante (of the investment business family),” she said.
Before a court packed with Penny’s family and friends, the judge said that 16 testimonials offered on his behalf were “glowing references” and “some of the most impressive I’ve ever seen”.
However, she said that his guilty plea, his age and the “significant” factor that he did not use the money for personal gain were only some of the measures in sentencing.
Justice King said his credibility and esteemed character was now “well and truly gone”, his offending had been “persistent, lengthy, fraudulent, and done in a manner to try to cover your tracks”.
She said he had also made no attempt to return any of the stolen money.
“You were well regarded in the city of Mildura ... you were considered an important and responsible citizen that has been exposed, in some ways, as false,” she said.
“I have no doubt you have been the subject to unpleasant remarks and gossip. You have indicated that you feel ostracised by many members of the Mildura community,” Justice King said.
“While many friends have come to support you in this court, a large number ... have also turned their backs upon you and your wife.”
Justice King said she was not satisfied that Penny’s offending was linked to a mental health condition and that his offending continued to the point of discovery “only because your ability to access these funds was beyond your control”.
“I have no doubt that you will not reoffend again in a way similar to this ... I doubt that you will be in a position to do so,” she said.
“I would be surprised if anyone would ever trust you with funds again in the future.
“You have expressed shame, embarrassment, remorse and some degree of resentment as to Mr Allen not facing these charges instead of you.
“Your family, who are standing by you, were unsurprisingly appalled and horrified at what you had done over this period of time.”
Justice King said the issue of general deterrence was “of real significance” in sentencing.
She said Penny abused his position of trust and behaviour “of that type will not be tolerated in this community”.
The judge noted that Penny had been a devoted community member who provided continual and “significant” community service to Mildura.
“You were held in the highest of esteem,” she said.
“You have been a very esteemed character in this community, all of which has now been lost.”
She said the high level and duration of offending, the consequences on the victims, the breach of trust involved, need for denunciation, and general and specific deterrence required her to try to impose a “just and appropriate sentence”.
Justice King sentenced Penny to six years in jail with a minimum of four before being eligible for parole.
She said that if not for his guilty plea, he would have been sentenced to eight years in prison with a minimum of six years before parole.
“While many may think that this is a merciful sentence in light of the vast sums of money involved, I have given you great benefit for your previous exemplary life as a citizen of this community,” she said.
This article appeared in Tuesday’s Sunraysia Daily 08/02/2012.
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