Spending spree on Centrelink $2m bungle

Judy Lorbek

Judy Lorbek went on a spending spree after a $2million Centrelink error.
Source: The Courier-Mail



A CASH-STRAPPED mum was given two million reasons to think all her money woes were over when Centrelink mistakenly deposited a seven-figure sum into her bank account.


The Brisbane District Court was on Friday told Sunshine Coast mother-of-three Judy Lorbek, then 46, had asked the Federal Government’s Child Support Agency (CSA) for an emergency payment of $2959.12 to help take care of her kids on February 2 last year.

The payment was granted, but when Lorbek went to access the much-needed funds four days later she could not believe her luck when she accessed her account and discovered the more than $2 million windfall.

The court was told Lorbek did not think twice about an error having been made by the CSA and went on an immediate spending spree.

Commonwealth prosecutor Aimee Aisthorpe said Lorbek did not contact the CAS to check if a mistake had been made and simply transferred all of the money to separate accounts on the day she received the $2,022,012 payment.

Ms Aisthorpe said in the space of a month Lorbek had paid off the mortgage on her own home, organised extensive renovations, signed a contract on a new house in New South Wales and established trust funds for each of her three kids.

The court was told over the course of 280 financial transactions Lorbek withdrew a total of $120,000 in cash, spent $30,000 via EFTPOS and $10,000 on gambling at RSLs.

Lorbek also lavished herself and her children with expensive stays at resorts and upmarket hotels and gifts – including beauty treatments, clothes and fashion accessories and outings to movies and licensed clubs.

Lorbek, now 47, was jailed for six years after pleading guilty to one count of theft at Nambour, on the Sunshine Coast, on February 6 last year.

She will be eligible for parole after serving 18 months in jail and will have to pay more than $430,000 in reparations upon her release.

The court was told although the agency approved Lorbek’s payment of almost $3000, a public servant had incorrectly typed in the day’s date in the section of a computer form where the payment was to have been entered.

Ms Aisthorpe said as a result, the employee approved a payment to Lorbek for $2,022,012 – a reflection of the date of 02/02/2012.

The court was told Australian Federal Police were alerted on March 7 last year when the agency had notice of the error and arrested Lorbek soon after.

Solicitor Michael McMillan, for Lorbek, said his client admitted spending the money on “frivolities”, but was sorry for her actions.

He said Lorbek had told authorities: “I am truly sorry for the actions I have caused.”

Lorbek, who was supported in court by a large contingent of family and friends, appeared dumbstruck after being sentenced.

 

Source Article from http://feedproxy.google.com/~r/newscomauthenationndm/~3/DBARNd6eGvc/story01.htm

Views: 0

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes