Retired MP jailed for falsely claiming more than $170k

A retired Victorian MP who falsely claimed more than $170,000 in administrative expenses has broken down in court after finding out he will spend at least a year behind bars.

Russell Northe, 57, was the independent member for Morwell in the state's east in 2020 when the Independent Broad-based Anti-Corruption Commission began investigating his conduct. 

Northe was required to have his finances independently audited so the Victorian Electoral Commission knew how much money was used for actual expenses and what needed to be paid back.

Investigators found in 2018 and 2019, Northe gave his auditor false receipts and bank statements, claiming he paid for administrative assistants through a labour hire firm, bought a new printer and paid $3100 per month in office rent.

The auditor signed off on his claims, believing they were legitimate.

Russell Northe (centre) arrives to the County Court of Victoria
Russell Northe (centre) will spend at least 12 months in prison.

Northe claimed $192,863.40 in expenses across the two years, with $175,813.40 falsely made.

IBAC charged Northe in September 2022, a couple of months before he confirmed he would not recontest his seat at the state election.

The 57-year-old on Wednesday broke down in the Victorian County Court as he was sentenced to 21 months in jail for misconduct in public office.

He will be eligible for parole after one year.

Judge Michael McInerney accepted Northe committed his crimes in the depths of an alcohol and gambling addiction, losing more than $223,000 over a two-year period.

The judge also accepted Northe's already poor mental health had deteriorated significantly in the lead up to his sentence hearing, with the 57-year-old last week admitted into a psychiatric facility.

"A sentence of jail would weigh more heavily on you than someone in normal health," Judge McInerney told the court.

"There's a serious risk that jail will have a significant adverse affect on your mental health."

But the judge said the crimes were "sophisticated, protracted and brazen," and Northe's moral culpability was high.

There needed to be just punishment and denunciation for such serious offending, Judge McInerney said.

"The only appropriate sentence... is that of imprisonment," he said.

"In my view, no other sentence would be appropriate." 

Russell Northe (centre) in 2014 (file image)
Russell Northe (centre) was a member of the coalition government cabinet in 2014.

Northe would continue to have access to his treating psychiatrist and Judge McInerney said he was confident the former MP would adapt to his new life once released on parole.

"It is to be hoped ... that the finalisation of the legal process will be to your benefit mentally," the judge said.

Northe sat with his head in his hands throughout the hearing, quietly sobbing at different times.

Judge McInerney wished him luck after delivering his jail sentence, also advising a prison guard to place Northe on suicide watch.

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