An elderly Perth accountant who stole nearly $10 million from his family, friends and former clients in fictional investment schemes described as being like a “Ponzi scheme” has been jailed for more than 11 years.
Joseph Papalia, 75, told his victims he had contracts with big-name companies including Walmart, Kmart and Rio Tinto and was importing goods from sex toys to jewellery and West Coast Eagles seat covers.
But they were all elaborate lies.
One victim gave Papalia $250,000 after the accountant got on his knees to beg for it, showing him pictures of sex toys he said he wanted to import.
That man, who the District Court heard had difficulty reading and writing, gave Papalia more than $1.5 million for fake investments and plans.
Joe Papalia told one man he planned to import sex toys, and begged him for money to help him do so. (Supplied)
Judge Carmel Barbagallo said Papalia promised “false investment opportunities” to people who relied on him, including lifelong friends and his god son.
His victims were vulnerable, felt “utterly betrayed” and it was “heartbreaking” to read of their suffering, she said.
“You would say whatever you felt you needed [to get money],” she told him, saying his actions had an “utterly catastrophic impact” on his victims.
‘Ponzi scheme’
Judge Barbagallo said at times he was “running what was essentially a Ponzi scheme”, obtaining money from one person to pay another, often to cover debts.
Papalia told different ‘investors’ he was importing plastic pallets, handbags, jewellery, adult toys, ball gowns, auto accessories, and that he was a supplier of work boots and safety clothing.
He also claimed he was getting access to stock from liquidated clothing chains.
He pretended to have an HSBC bank account in Hong Kong and asked for contributions for investments in gold shares, commercial property in Perth, and a lithium company, promising returns that never came.
Alcoa, Rio Tinto, Multiplex, Kmart, Walmart, Harvey Beef and Supercheap Auto were among the companies he claimed to have contracts with, but never did.
Papalia was sentenced in the WA District Court. (ABC News: Jack Stevenson)
He also said he was involved in the James Price Point exploration project, which was shelved in 2013.
Earlier this year Papalia pleaded guilty to stealing $9.6 million from 41 people between 2007 and 2021, although the judge said that was not the “entirety” of what he had stolen.
Trail of heartbreak
Some victims lost hundreds of thousands of dollars, others well over a million.
Contributors dipped into savings or superannuation funds and some have had to sell homes and other assets to recover financially.
Papalia used the money for himself, or to prop up his own businesses which were not performing.
When people asked for their money back, he came up with excuses like he had a disease, his car had been stolen or that a relative had a foot amputated.
Papalia had started borrowing money after his clothing retail stores experienced financial hardship or had gone into debt.
Investigation continues into Perth accountant who allegedly stole millions
In 2021, police were called to his home after he was confronted by people who had given him money.
He was charged not long after and today, was jailed for 11 years and eight months, but will be eligible for parole in nine years and eight months.
Judge Barbagallo accepted he was remorseful and that while he wished he could pay back all the money, he knew he couldn’t.
She made a compensation order for the 41 victims.
Loading