It was pure greed that drove Michael Williamson to systematically defraud the Health Services Union of almost $1 million, the prosecution says.
But the once powerful union boss has told a psychiatrist that memories of financial hardship during his childhood shaped his offending.
Almost 20 years after becoming General Secretary of the HSU, Williamson was remanded in custody at Sydney's District Court on Monday for defrauding the union of almost $1 million and hindering a subsequent police investigation.
As his friends and family gathered in court to support the 60-year-old, they heard how, during his tenure at the union, he had created an environment where his behaviour would not be questioned.
Williamson, court facts state, was considered the most "powerful person within the union" and had presided over an increase in salaries that were "significantly above industry levels".
The former ALP president's supporters were dubbed "Michael Williamson's Team".
From around the time his offending started, Williamson was earning more than $290,000.
By 2011, that figure had ballooned out to more than $513,000.
It was while on these pay packets that Williamson began his criminal behaviour, prosecutor Emily Winborne said.
In one instance of the fraud - carried out from 2006 to 2009 - the father of five created a series of false invoices made out to the company CANME, which was in his wife's name.
HSU forked out more than $340,000 for work that was never done.
Once inquiries into the union's financial mismanagement began, Ms Winborne said the lengths to which Williamson went to cover-up his underhanded activities was "extraordinary".
Williamson, she said, was motivated "purely and significantly by greed".
Since declaring bankruptcy last year, she said the union has no avenue for restitution and is now "$5 million worse off".
In a report tendered by the defence, forensic psychiatrist Bruce Westmore said that when he asked Williamson why he had done what he did, the former union head referred to his early childhood and the financial pressures on his parents.
A teary Williamson recounted how on one occasion he had cried when his parents could not afford to go to see a movie.
Williamson told Dr Westmore "I didn't want my kids to feel how I felt and that is how it all seemed to start".
With the money having been spent on mortgages, school fees and entertainment for his family, Williamson's wife now owns his assets and his superannuation, Dr Westmore noted.
Williamson's barrister Timothy Game SC said his client had considered self-harm.
"The downfall has been complete," he said.
Judge David Frearson will sentence Williamson later this month.
