A 75-year-old accountant who orchestrated a multi-million dollar Ponzi scheme, preying on his own family and lifelong friends in a tight-knit West Australian community, has been handed a massive prison sentence.
A Web of Lies Targeting Family and Friends
Joseph Papalia spun a complex web of lies to convince 41 victims to hand over their money for fictitious investments. The elderly accountant promised lucrative returns, including an outlandish 20 per cent profit in just one week, to people within his South West Italian community in the Harvey area.
He fabricated stories about importing work boots and high-visibility apparel for mining giants like BHP, Rio Tinto, Fortescue, and Alcoa. Other false ventures included contracts with Harvey Beef and Multiplex for pallets, supplying car seat covers to Super Cheap Auto, and claiming to be the chief financial officer for the retail chain Thingz.
In reality, Papalia was funneling the cash into his failing retail clothing businesses in Perth. The betrayal was profound, with victims including his own cousin, his godson—from whom he stole $171,000—and multiple members of the Morabito family, including former Fremantle Docker Anthony Morabito and his father Vincent.
Devastating Consequences for Vulnerable Victims
The impact of Papalia's crimes was described by District Court Judge Carmel Barbagallo as "devastating" and "life-destroying." Many victims were elderly and vulnerable, having trusted Papalia for decades—he was often the family accountant, attended weddings, and even delivered eulogies.
One elderly couple was forced to sell their home and now relies on Centrelink. Others were talked into parting with their superannuation, delaying their retirements indefinitely. Judge Barbagallo noted Papalia had stolen "family legacies," erasing a lifetime of hard work.
When pressed for repayments, Papalia concocted bizarre excuses, including claims he had Hodgkin’s disease, that his car was stolen, and that his sister-in-law had undergone a foot amputation. As threats mounted, he even begged a victim for money to invest in sex toys, "crying on your hands and knees," the court heard. That particular victim lost $1.57 million.
Justice Served After Years of Deception
Papalia was convicted of stealing $9.6 million, though initial accusations put the figure at nearly double that amount. Judge Barbagallo said his legitimate business began struggling during the 2008 financial crisis, with problems worsening during the pandemic. Instead of declaring bankruptcy, Papalia made "stupid decisions" and entered a "vicious cycle of robbing Peter to pay Paul."
The court accepted that Papalia was remorseful and had wanted to plead guilty sooner but received poor legal advice. He showed insight, telling a psychiatrist his victims would have "lost faith in humanity."
Ultimately, Joseph Papalia was sentenced to 11 years and eight months in prison. With time already served, he will be eligible for parole after nine years and eight months, at the age of 81.
