🇦🇺Australia

Confidential Informant Payment Mismanagement & Settlement Liability

2 verified sources

Definition

Victoria Police's management of Nicola Gobbo as a confidential informant (Lawyer X) resulted in a $3 million settlement after initial claim of $30 million, plus $4.52 million in costs to conceal the relationship. This breach of confidentiality obligations triggered a High Court judgment and Royal Commission investigation.

Key Findings

  • Financial Impact: AUD $7.52 million (documented: $3 million settlement + $4.52 million operational secrecy costs)
  • Frequency: One major case exposed; systemic risk suggests ongoing exposure
  • Root Cause: Lack of transparent fund management protocols, inadequate confidentiality safeguards, and absence of audit oversight in confidential informant payments

Why This Matters

The Pitch: Australian law enforcement agencies waste AUD $7.52 million+ in documented confidential informant fund mismanagement (Victoria Police case alone). Systematic fund controls and transparency protocols eliminate unauthorized payments and litigation exposure.

Affected Stakeholders

Law enforcement financial controllers, Police command, Government legal counsel

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Confidentiality Breach & Royal Commission Investigation Costs

Estimated AUD $5-15 million (Royal Commission costs, legal representation, staff time for compliance with 370+ disclosure restrictions)

Overtime Rate Underpayment & Fair Work Penalties

HARD: AUD 495,000 maximum penalty per corporation offense. LOGIC: Typical medium-sized law enforcement agency (100-200 employees) with 10-15% workforce on overtime experiences AUD 30,000-100,000 annual underpayment exposure if error rates are 5-10% of overtime hours.

Overtime Fraud & Unauthorized Shift Premium Abuse

LOGIC: At 2-5% of overtime payroll as fraud loss. For a 200-person agency with 15% on overtime at AUD 65/hour average, annual overtime spend = ~AUD 3.9M. Fraud loss = AUD 78,000-195,000 annually.

Lack of Real-Time Overtime Cost Visibility & Budget Overruns

LOGIC: Typical 200-person law enforcement agency budgets AUD 2-4M annually for overtime. A 10% budget overrun (blind decisions) = AUD 200,000-400,000 unplanned cost.

Auction Cost Erosion in Seized Property Disposition

Estimated 8-15% of gross auction proceeds; typical AUD 2,000-8,000 per seizure event depending on asset class and storage duration

Time-to-Cash Delay in Seized Property Auction Settlement

Estimated AUD 5,000-15,000 per case in opportunity cost (time value of judgment debt at 5-8% annual discount rate over 120-day settlement delay); affects ~50,000+ civil enforcement actions annually across Australian jurisdictions

Request Deep Analysis

🇦🇺 Be first to access this market's intelligence