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The Health Services Union expenses affair was an Australian political scandal that concerned criminal activities associated with the financial affairs of the Health Services Union of Australia (HSU), between 2006 and 2007; and the Health Services Union "east branch" (HSUeast) between 2006 and 2011.[12][13]
Following regulatory and administrative investigations, criminal trials and a subsequent appeal, on 15 December 2014 Craig Thomson, a former national secretary of the HSU and a former Labor politician, was found guilty in the Victorian County Court of thirteen charges of theft, and later convicted and fined A$25,000.[7][8] Earlier convictions for obtaining financial advantage by deception were overturned on appeal.[1]
His conviction followed an appeal against a conviction and sentence in the Melbourne Magistrates Court on 25 March 2014 when Thomson was found guilty of 65 charges of fraud and theft for using Health Services Union funds for personal benefit;[2][3][4][5] and sentenced to twelve months imprisonment, with nine months suspended over two years. Thomson was initially released on bail;[14][15][16][17] and the conviction and sentence subsequently overturned on appeal.[7][8]
In October 2013, Michael Williamson, a former national president of the HSU, a former general secretary of HSUeast, and a former union and Labor right-wing factional power broker,[13] pleaded guilty to two charges of fraud totaling nearly A$1 million from HSUeast, one charge of fabricating invoices and another charge of recruiting others to hinder a police investigation.[6] An earlier independent report commissioned by the union detailed that companies associated with Williamson and his family had allegedly fraudulently received more than $5 million from HSUeast in the period from 2006 to 2011.[6] In the NSW District Court in March 2014, Williamson was sentenced to seven–and–a–half years of imprisonment; with a non–parole period of five years.[9][10][11]
As of 28 March 2014[update] civil proceedings against Thomson and Williamson were pending.
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