A former Northeast Health Wangaratta (NHW) employee has avoided conviction after swindling more than $34,000 from the hospital in offending that “mystified” everyone around him.

The 49-year-old appeared at Wangaratta Magistrates’ Court on Thursday in front of a packed court room to plead guilty to 17 charges of obtaining funds by deception.

He was previously facing 92 charges, but they were withdrawn in place of the 17 charges.

The court heard from November 2021 to April 2023 the defendant deceived his employer by claiming funds for the services of hospital staff for his own.

From 2018 NHW and Alexandra District Hospital (ADH) entered a services agreement for NHW radiologists to attend ADH once a week and offer their medical imaging services at the hospital.

In September 2021, the independent radiologist at the Alexandra hospital retired and the accused assumed responsibilities of submitting invoices to ADH for payment to NHW.

In the monthly invoices, dates, duties and hours of each employee of NHW, primarily three radiologists, were submitted.

But instead of the funds being directed to the hospital, the accused used his own bank account under the header of his own private medical imaging service to have the funds sent directly to him.

The invoices varied from $800 to as much as $3000, totaling $34,338 over the 16-month period.

The accused concealed information of the invoices from NHW and covered up hours committed to tasks at ADH.

In October 2022 ADH asked for a clarification on the hours billed in the invoices and the employees’ initials signed on them.

Following an internal investigation into the accused’s conduct, he resigned from his position at NHW.

He was interviewed by police in July 2024 and told a detective he couldn’t explain the offending other than it was a bookkeeping error and he reimbursed $16,000 worth of the funds stolen once identified.

The court heard he paid the hospital the rest of the stolen funds at a later date.

The matter had been adjourned several times throughout the year, with the accused employing the help of Barrister Colin Mandy SC, who also defended convicted murderer Erin Patterson in her Supreme Court trial earlier this year.

The matter had also been adjourned in the days following the tragic death of the lead investigator of the case, Detective Leading Senior Constable Neal Thompson.

Mr Mandy said the late detective summed it up best after a heart-to-heart conversation with the accused following his police interview, telling him he was a good bloke, who had made a bad decision.

Mr Mandy said a combination of deteriorating depression and anxiety, a significant workload following COVID-19 and financial pressures became too much for his client and led to a “significant lapse in judgement”.

The court heard the accused and his family had hundreds of thousands of dollars of damage done to their home due to flooding in 2018, which Mr Mandy said added to the financial stress.

Family, friends and supporters of the accused filled the body of the court, many of them Mr Mandy said were “mystified” upon finding out about the offending.

“His reputation to some extent has diminished, even among his family,” he said.

“They understand what he has done was dishonest and they are mystified by it as well.”

Many character references were read out in court which indicated the man was otherwise an exemplary member of the Wangaratta community.

“They really speak with one voice about a good man,” Mr Mandy said.

“He wants an opportunity to have the community trust in him restored and he’s doing everything he can.”

One friend said the 49-year-old was an invaluable mentor to young men in the football community and his “lapse in judgement” was not a reflection of who he was.

A colleague at Mansfield District Health said it was clear the 49-year-old was ashamed of his actions and deeply remorseful, and was highly respected despite the allegations hanging above him.

The court heard the medical governing body APHRA were set to review the 49-year-old's medical practicing licence following the court matters.

Mr Mandy said a non-conviction was crucial to seeing the 49-year-old back into his work which would best serve him and his community.

Police prosecutor Acting Senior Sergeant Kane Williams said police were not pushing for jail time or conviction despite the seriousness of the offending and remorse and accountability he had been shown.

“It’s clear he was a very high standing member of this community,” he said.

Magistrate Peter Dunn, who contemplated sending the matter to a higher court before accepting the jurisdiction, imposed an 18 month community corrections order without conviction.

Magistrate Dunn said the man’s proactiveness in seeking help by seeing a psychologist regularly and longstanding contribution to the community persuaded him to not give a conviction.

“I can’t repeat too many times, this is a massive breach of trust,” he said.

“The impact on all of his family and friends from his behaviour will weigh heavily on him.

“We all know health providers are in need of all the funding they can get.

“If he is ever to return to assist in the community with his skills he will have to persuade them [APRA].

“I would have every confidence he will continue to seek assistance.”

The order will include 150 hours of community and treatment for the 49-year-old’s mental health.

NHW declined to comment.