Farming family's trusted bookkeeper jailed for $2.8m fraud

A disgraced bookkeeper has been jailed for 12 years for defrauding almost $2.8 million from the farming family that employed her for almost two decades.

Michelle Kathleen Lawson, 53, systematically abused her trusted position to steal money from businesses belonging to the Johnston family of Tully in Far North Queensland between 2017 and 2023.

Lawson disguised her fraud as wage payments to fictitious employees and through false invoices, the District Court in Cairns heard.

Lawson, who was caught after a tax agent found discrepancies in accounting records, used $2.5 million to fund what Judge Joshua Treviño KC described as an "extremely lavish lifestyle".

She used the Johnstons' money to pay for horses, education for her children, personal insurance bills, travel and accommodation.

"Your extravagance included spending almost $1 million of the money you stole on retail expenditure," Judge Treviño said.

"A quarter of a million of that sum on clothing and shoes alone."

A forensic investigation could not account for $300,000 but the court heard Lawson accepted she used the Johnstons' money to buy into a clothing boutique.

"The use of funds for that purpose really underlines just how wickedly selfish and greedy your fraudulent activities were," Judge Treviño said.

"You used the Johnston family's hard-earned money to pursue other business ventures that had the potential to reap you even greater financial rewards at their expense."

Victim-blaming 'despicable'

Lawson pleaded guilty to seven counts of fraud, each related to different businesses set up for the Johnstons' banana and cattle farms, and associated farming services.

She committed the fraud as the Johnstons dealt with cyclones and floods, and an outbreak of Panama disease in 2020 that temporarily forced them to stop producing bananas.

Judge Treviño said Lawson co-operated with authorities "once the game was up" but she did so "in the face of what was an overwhelming case".

However, he said he did not consider Lawson's guilty plea to be indicative of remorse, a view he said her psychological report backed up.

"What stands out when reading it, are your despicable attempts to lay blame for your fraudulent conduct at the feet of your victims," Judge Treviño said.

"Without insight into your offending, you risk repeating your behaviours should you ever find yourself in a similar position of trust in the future.

"There is no evidence you have ever attempted to apologise directly to [the Johnston family].

"That was, of course, always an option open to you."

On Friday, the court heard victim impact statements from members of the Johnston family, who outlined how the emotional toll and financial consequences of Lawson's crimes would live with them for generations to come.

The fraud cost them opportunities to buy neighbouring farmland and hire more staff, the court heard.

"To learn that someone I had trusted and helped for so long had been deceiving us every day and continuing to smile at us, was almost impossible to accept," 81-year-old family matriarch Jill Johnston said.

The Johnstons managed to recover almost $1.5 million through civil action but the legal fees and related expenses cost them $500,000, on top of an emotional toll, the court heard.

Mrs Johnston's daughter Melanie told the court she had to give up secure employment interstate to return to Tully to assist with the case.

The Johnston family and their supporters filled the courtroom gallery in Cairns for Lawson's plea and sentencing hearings, while Lawson appeared by video link from a Townsville prison.