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.<\/p>\n
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.<\/p>\n
But they were all elaborate lies.<\/p>\n
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.<\/p>\n
That man, who the District Court heard had difficulty reading and writing, gave Papalia more than $1.5 million for fake investments and plans.<\/p>\n
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Joe Papalia told one man he planned to import sex toys, and begged him for money to help him do so.\u00a0 (Supplied)<\/p>\n
Judge Carmel Barbagallo said Papalia promised “false investment opportunities” to people who relied on him, including lifelong friends and his god son.<\/p>\n
His victims were vulnerable, felt “utterly betrayed” and it was “heartbreaking” to read of their suffering, she said.<\/p>\n
“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.<\/p>\n
‘Ponzi scheme’<\/p>\n
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.<\/p>\n
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.<\/p>\n
He also claimed he was getting access to stock from liquidated clothing chains.<\/p>\n
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.<\/p>\n
Alcoa, Rio Tinto, Multiplex, Kmart, Walmart, Harvey Beef and Supercheap Auto were among the companies he claimed to have contracts with, but never did.<\/p>\n
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Papalia was sentenced in the WA District Court.\u00a0 (ABC News: Jack Stevenson)<\/p>\n
He also said he was involved in the James Price Point exploration project, which was shelved in 2013.<\/p>\n
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.<\/p>\n
Trail of heartbreak<\/p>\n
Some victims lost hundreds of thousands of dollars, others well over a million.<\/p>\n
Contributors dipped into savings or superannuation funds and some have had to sell homes and other assets to recover financially.<\/p>\n
Papalia used the money for himself, or to prop up his own businesses which were not performing.<\/p>\n
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.<\/p>\n
Papalia had started borrowing money after his clothing retail stores experienced financial hardship or had gone into debt.<\/p>\n