Michelle Kathleen Lawson has admitted to defrauding seven businesses owned by a farming family in Tully, located in Far North Queensland. The District Court revealed that Lawson misappropriated funds while serving as the family’s trusted bookkeeper to support her extravagant lifestyle.
Lawson, 53, is scheduled for sentencing in Cairns next week. The Johnston family, who have faced numerous challenges including cyclones, floods, and an outbreak of Panama disease, were unaware that their trusted employee was secretly embezzling millions of dollars.
Although the Johnstons regarded Lawson as a close friend and a reliable bookkeeper, the court learned that she exploited her position to divert funds into her own accounts, as well as those of her husband and son. As the Johnston family began new business ventures, Lawson initiated fraudulent activities, disguising unauthorized payments under fictitious employee names.
She pleaded guilty to seven counts of fraud, which spanned six years and involved approximately $2.8 million. The court heard that Lawson, a former justice of the peace and past treasurer of the local business chamber, used the stolen money for horses, vehicles, vacations, real estate, her own business, and additional education for her children.
The betrayal has left the Johnston family devastated, as they had included Lawson in family celebrations and even congratulated her on her clothing boutique, unaware that their funds had contributed to its establishment.
In a victim impact statement, Jill Johnston, 81, shared how she believed a family meeting in June 2023 was intended to discuss a succession plan. Instead, she learned of Lawson’s misconduct after 18 years of managing the family’s financial affairs. “It has felt in many ways like a death,” Jill stated, expressing her guilt for failing to detect the fraud despite reviewing bank statements and raising questions.
The court heard that Jill had accommodated Lawson’s needs at work, even arranging for a cot in the office after Lawson had her baby. Lawson rejected offers for coverage during her absences, opting to handle payroll herself, which Jill now realizes was an attempt to avoid scrutiny. “In the more than three years since this has come to light, Michelle has never apologized to me or my family,” Jill lamented.
Jill’s children, Paul, Anthony, Stephen, and Melanie, also provided statements detailing the long-term repercussions of Lawson’s betrayal. They noted that her actions hindered the family’s ability to hire additional staff, purchase necessary equipment outright, and pursue opportunities for expansion.
Paul Johnston expressed the emotional toll of the situation, stating, “It’s a bitter pill to swallow as I view that farm every day on my way to work.” Stephen Johnston mentioned the family’s decision to seek civil action to recover funds from Lawson, emphasizing their commitment to preserving their family’s legacy and honoring their late father’s work.
The court learned that the Johnstons were able to recover nearly $1.5 million through civil litigation, though legal fees and forensic accounting costs amounted to about $500,000.
Defence attorney Kelly Goodwin explained that Lawson had a difficult upbringing, characterized by domestic violence, substance abuse, and the loss of her father. Goodwin submitted a six-page letter from Lawson and several character references, indicating that she accepted responsibility for her actions. Lawson appeared via video link from the Townsville Women’s Correctional Centre, where she has been in custody for over two years after voluntarily revoking her bail. Judge Joshua Treviño KC is expected to announce Lawson’s sentence on Wednesday.
