Victoria’s integrity watchdog has prosecuted a “whistleblower” who was caught leaking details of a top-secret Lawyer X investigation to the media.
This week, the public servant known as JB pleaded guilty to making a false statement to the Victorian Inspectorate, as it tried to find the source of leaks to the Herald Sun newspaper in 2023.
Information supplied by JB twice found its way onto the front page when the paper ran stories about frustrations allegedly held by staff inside the Office of Special Investigator (OSI).
The OSI was set up to uncover potential criminal activity when lawyer Nicola Gobbo was recruited and used as a secret police source during Melbourne’s gangland war, in a gross breach of legal privilege.
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However the OSI was shut down after its chief, Geoffrey Nettle KC, said there was no point in the agency continuing because the state’s then-top prosecutor, Kerri Judd, was unwilling to lay charges.
Ms Judd defended her actions and argued there was no reasonable chance of securing convictions against those involved in the long-running saga.
Weeks later, the Herald Sun printed stories with the headlines, “Doomed from the start” and “We wanted Overland”. The articles quoted anonymous OSI sources who claimed the agency’s work was stalled by uncooperative witnesses.
One story claimed OSI staff wanted charges laid against Simon Overland, a former police chief who headed up the anti-gangland Purana Taskforce while Ms Gobbo was informing on her clients.
Mr Overland has never been charged and always denied any wrongdoing, although criticism was levelled at him in recent Court of Appeal findings.
Emails, phone records linked OSI worker to journalist
JB, who worked as a senior investigator for the OSI, initially gave sworn evidence to the inspectorate and denied passing confidential material to the newspaper, the Melbourne Magistrates’ Court heard.
JB later admitted being the source of the leaks, with the inspectorate uncovering emails and phone calls between them and journalist Shannon Deery.
JB pleaded guilty to making a false statement and was granted a diversion by Magistrate Justin Foster on Friday.
It means they will not receive a conviction or a blemish on their criminal record, provided they are of good behaviour for the next six months.
Defence lawyer Sally Vardy said JB had an “incredibly impressive” employment history prior to the leaks, and that the investigation into their conduct had a “significant impact” on them.
Magistrate Foster also agreed to a suppression order, preventing JB’s full name, gender, image and current employer from being revealed until 2035.
In a publicly-released report, the inspectorate said leaks of secret OSI information to journalists could constitute a breach of the Special Investigators Act.
However JB was not prosecuted under the laws, which threaten OSI staff who disclose confidential details with a maximum of two years in jail and a $39,500 fine.
Media leaks ‘had serious consequences’, investigators say
OSI staff like JB were protected by law if they made a report about corruption and misconduct directly to the corruption watchdog IBAC. The secrecy obligations of their job banned them from disclosing information that was not in the public domain to outsiders, including after their employment ended.
The inspectorate’s investigation, codenamed Operation Shell, was unable to find evidence of other whistleblowers who had shared information with the newspaper.
“Going to the media was not appropriate and had serious consequences,” the inspectorate said in its report.
The inspectorate said the stories contained “inaccuracies”, and had the potential to tarnish the reputations of other OSI staff.
“The media has an important role to report on integrity matters and government; however there are serious non-disclosure obligations on integrity body officers or former officers that need to be maintained in the public interest,” the inspectorate said.
Lawyer X story exposed with help of sources
In recent years, public servants who came forward to the media exposed scandals including possible unlawful killings by soldiers and unethical debt recovery practices by the Australian Tax Office. Some who have been unmasked, however, have faced criminal prosecution and jail.
Tony Mokbel (left) is one of Ms Gobbo’s former clients who is appealing against his convictions. (AAP: Joel Carrett)
Journalists regularly obtain information from trusted “off the record” sources in the worlds of politics, business and the law. Sometimes, the sources provide details that leaders or organisations want kept under wraps.
The initial media reports in 2014 that a lawyer had double-crossed clients were built from information obtained from confidential sources.
It became known as the Lawyer X scandal, and five years later, Ms Gobbo was revealed to be at the centre of the controversy.
A royal commission was held and many of her former clients lodged legal appeals against their convictions, resulting in some walking free.
