Pact to claim life insurance lands teacher and security guard in jail

Esther Maree Vella had a $700,000 debt on her Strathfield property which she was determined to be rid of.

She concocted a plan in which her long-suffering partner, Peter Siskos, would increase his life insurance to $1.7M, name her as the sole beneficiary and then commit suicide.

The plan backfired spectacularly when Siskos, a 49-year-old security guard "chickened out" of throwing himself in front of a train at Croydon.  Instead, he disappeared from work and slept rough for a week-and-a-half until he was spotted in a Burwood Park.  Several people then came forward to police to say Vella, a 51-year-old school teacher and boarding house owner, had let slip details about the macabre plan.

One of Vella's tenants, Tony Appleby, went to police and confessed to helping Vella destroy incriminating evidence.  He agreed to meet Vella wearing a listening device and police recorded a conversation in which they discussed suicide involving a train, destruction of incriminating evidence and her lost opportunity to claim an insurance payout.

Vella and Siskos were charged under the common law of conspiring with each other to defraud an insurance company, OnePath.

The Crown case was that Vella and Siskos deliberately omitted to inform OnePath of Siskos' intention to commit suicide, despite knowing they had a duty of disclosure when taking out the policy.

The couple pleaded not guilty, the case was proven beyond a reasonable doubt and they were convicted by a District Court jury.

Vella was sentenced to six-and-a-half years' jail with a non-parole period of four years and nine months, while Siskos was imprisoned for two-and-a-half years with a non-parole period of 15 months.

Vella and Siskos appealed their convictions and sentences. The Court of Criminal Appeal dismissed the appeals, noting the case was "extremely unusual".

*** Read the original article here ***

*** Read the decision of the Court of Criminal Appeal here ***

The impact of fraud on Australian business

Not all employees commit fraud however, 55% of all fraudulent acts committed against Australian businesses are perpetrated by employees.  Fraud is often difficult to detect and the impact it has on a business is often underestimated.  Numerous case studies have been conducted on this issue and the statistics are alarming.  Did you know that: 

  • the average fraud amounts to $3 million;
  • 60% of fraud cases take more than 3 years to detect;
  • 61% of fraud cases result in no recovery;
  • less than 5% of businesses have insurance to protect against fraud; and
  • the annual cost of fraud in Australia is estimated at $8.5 billion. 

In addition to insuring against losses from fraud, the following simple, yet practical steps can help mitigate exposure to internal fraud: 

  • conduct rigorous background checks on all prospective employees;
  • implement and regularly review internal policies and procedures;
  • open avenues for the anonymous reporting of fraud; and
  • keep up to date with developing fraud trends. 

Allegations of fraud perpetrated within or against a business should be reported to police as soon as they are identified.  That said, the conventional assumption that police will take immediate action to protect a business’ interests is problematic; primarily because they are unable to investigate every report with the limited resources available to them. 

If you believe your business has been the victim of theft or fraud, please contact us to discuss how we can assist you.