Pact to Claim Life Insurance Lands Teacher & Security Guard in Jail

When Insurance Fraud Turns Criminal: The Case of Esther Maree Vella and Peter Siskos

Insurance is designed to provide security and peace of mind - but when people attempt to exploit the system, the consequences can be severe. Few cases illustrate this more dramatically than the failed $1.7 million insurance fraud involving Sydney schoolteacher Esther Maree Vella and her partner, Peter Siskos.

A Desperate Plan

Vella, burdened with a $700,000 debt on her Strathfield property, devised a chilling scheme. She persuaded her long-suffering partner, Siskos, to take out a $1.7 million life insurance policy naming her as sole beneficiary. The plan relied on Siskos deliberately ending his life, enabling Vella to claim the payout and clear her debt.

But when the moment came, Siskos could not follow through. Instead of throwing himself in front of a train at Croydon, the 49-year-old security guard vanished from work and slept rough for over a week before being spotted in Burwood Park.

The Investigation Unfolds

The conspiracy began to unravel when several people came forward, saying Vella had let slip details of the macabre plan. One of her tenants, Tony Appleby, admitted to helping destroy incriminating evidence and later cooperated with police.

Wearing a listening device, Appleby recorded a damning conversation with Vella. They discussed suicide by train, attempts to cover their tracks, and her “lost opportunity” to claim the payout.

Court Proceedings

Vella and Siskos were charged with conspiracy to defraud OnePath Insurance. The prosecution argued that they deliberately omitted Siskos’ suicidal intentions when applying for the policy - a clear breach of their duty of disclosure.

Both denied the allegations, but the evidence proved overwhelming. A District Court jury convicted the pair beyond reasonable doubt.

• Vella was sentenced to 6½ years’ jail (non-parole: 4 years 9 months).

• Siskos received 2½ years’ jail (non-parole: 15 months).

Both appealed their convictions and sentences, but the Court of Criminal Appeal dismissed the appeals, describing the case as “extremely unusual.”

Why This Case Matters

This case underscores the serious consequences of insurance fraud. What began as a desperate attempt to erase debt spiralled into criminal conspiracy, imprisonment, and ruined lives. It’s a stark reminder that insurers, investigators, and courts take fraudulent claims seriously — and that transparency in insurance applications is not optional, but a legal obligation.

Need Clarity in a Complex Matter?

At QNA Investigations, we deliver facts, not assumptions - helping a wide range of clients uncover the truth with precision and integrity.  If you’d like to know more, contact us by phone on +61 2 9212 5000 or via email at mail@qnainvestigations.com.au.

Read the original article here
Read the Court of Criminal Appeal judgment here

The Impact of Fraud on Australian Business

Fraud is one of the most significant yet underestimated risks facing Australian businesses today.  While not all employees engage in misconduct, studies show that 55% of all fraud committed against Australian businesses comes from within the organisation itself.

Fraud is often difficult to detect and its impact can be devastating - not only financially, but also to reputation, employee morale, and client trust.

The Alarming Statistics

Numerous case studies highlight just how costly fraud can be:

• The average fraud case amounts to $3 million.

• 60% of fraud cases take more than three years to detect.

• 61% of fraud cases result in no recovery at all.

• Fewer than 5% of businesses have insurance to protect against fraud.

• Overall, fraud costs Australian businesses an estimated $8.5 billion annually.

These figures demonstrate that fraud is not just an operational risk - it is a strategic threat.

Reducing the Risk of Fraud

While no business is immune, there are practical steps that can reduce exposure:

• Conduct rigorous background checks on all prospective employees.

• Implement and regularly review internal policies and procedures to ensure they remain relevant and effective.

• Encourage anonymous reporting mechanisms, such as whistleblower hotlines, to detect misconduct earlier.

• Stay informed about developing fraud trends, both locally and globally.

Why Action Matters

Fraud allegations should always be reported to police as soon as they are identified.  However, businesses cannot assume that law enforcement will take immediate action to safeguard their interests.  With limited resources, police are unable to investigate every report comprehensively.

This is where professional investigators add value - providing businesses with the clarity, evidence, and support needed to make informed decisions and protect their interests.

How QNA Can Help?

If you believe your business has been the victim of theft or fraud, QNA Investigations can help.  Our specialist investigators deliver discreet, professional solutions to uncover the facts, gather admissible evidence, and support businesses in resolving fraud matters effectively.  If you’d like to know more, contact us by phone on +61 2 9212 5000 or via email at mail@qnainvestigations.com.au.