Joseph Papalia: Trusted accountant who stole millions from life-long friends ‘destroyed lives’

An accountant who ripped off millions of dollars from life-long friends who belonged to a South West Italian community exploited their trust and destroyed their retirement, a court has been told. The impact Joseph Papalia’s scheming had on his many victims was detailed in the District Court on Thursday, with Judge Carmel Barbagallo describing it as “catastrophic and egregious”. The 75-year-old stole $9.6 million from 41 victims over 14 years, many of whom he grew up with, attending not just their weddings but also their children’s’. He even held a joint 70th birthday celebration with one of them and delivered the eulogy at the funeral of another victim’s mother. “These types of relationships he traded on,” prosecutor Tracy Tan said on Thursday. “He personalised the pitch in full knowledge of what their interest was.” “Papalia would offer investments in construction or cars if that was what appealed to his victim, then pivot to something else if it didn’t work.” It was not opportunistic but a “sustained and targeted deception” involving bounced cheques rather than the handsome returns he promised. Judge Barbagallo said the victim impact statements were “really awful reading”. “It’s not just money — it’s a lifetime of saving hard,” the judge said. “They’ve had to sell homes. “Sixty years he was in their lives ... he deprived them of their retirement. “The conduct is terrible. It’s devastating. And the betrayal, the betrayal just sticks in my mind. “There’s a wake of destruction in his path that he cannot fix.” One couple had to sell their West Perth property and get a reverse mortgage in Joondalup, then move to Bindoon — leaving them far from family in their senior years when they needed help most. Defence counsel Zarah Burgess said the connection between her client and many of the victims went back a generation, with their fathers knowing each other. Papalia started out with the “right” intentions and work ethic, initially assisting a community whose members had built themselves up together. “So to say the destruction he then caused with his Ponzi scheme was ironic was an understatement,” Ms Burgess said. Judge Barbagallo said anyone who had a relationship with an accountant knew it was an important role. “He became a critical part of the fabric of that community and then relied on that to do what he did,” she said. Outside court, victims of Papalia who did not want to be named said he even grabbed the first earnings of their teenage daughters. Papalia took the cash to prop up a string of retail stores in Perth that ultimately failed and the scheme collapsed with less than nothing in the bank. As it unravelled, he stopped returning calls and started making excuses, sending a photograph of himself in hospital to many of those trying to get in touch. Papalia was initially accused of stealing at least $19m, with WA Police saying in 2021 that victims handed over between $5000 and $3.94m over a span of 18 years. But the State proceeded with a case for half that total sum on “a pragmatic basis” as they prepared for trial, the judge said. Papalia only pleaded guilty in July — a month or two out from a 12-week trial — and wanted to do so “from the word go” but was “pushed” by his previous lawyer to fight the charges, Ms Burgess said. She said her client, who is behind bars at Casuarina Prison, was not told that meant the maximum 25 per cent sentence discount for pleading guilty early diminished over time. And while his former counsel referred to “horse trading”, he never approached the State to negotiate a pleading proposal, Ms Burgess said. Judge Barbagallo said that was “quite extraordinary”. She will hand down Papalia’s sentence on Friday.