As state director of the Victorian Liberal Party, Damien Mantach's role was a rorter's dream.
The former party boss has been accused of stealing $1.5 million over four years.
Mr Mantach had the final say on budget line items, such as polling research, that the party treasurer was not allowed to see.
It allowed him to bill the party with invoices - some created on his work computer - for jobs that did not exist.
Mr Mantach resigned after the 2014 state election loss but had to face the music on Monday when the party's lawyers called him to a meeting.
His lawyer arrived on Tuesday in an attempt to cut a deal when the party thought he had stolen around $800,000.
The Liberals wanted complete disclosure and Mr Mantach allegedly spent hours with officials on Wednesday explaining the full extent of his theft.
"We feel profoundly betrayed and terribly disappointed with what's happened," state president Michael Kroger told reporters on Thursday.
"It appears it was only Damien involved. If the police find others, fine, but we're not aware that anyone at the party head office or any officials had any involvement at all."
Victorian Liberal leader Matthew Guy said members were "gutted" after raising funds for the state and federal election campaigns.
"The party is furious, we want our money back, we want this matter sent to the police, and we will be doing everything we can to ensure that justice is done," he said.
Mr Kroger believed the party would be able to reclaim some of the money, which was in assets.
The Tasmanian branch of the party also had to reclaim money from Mr Mantach after he left his role as state director in 2008.
Tasmanian division party president Geoff Page on Thursday said Mr Mantach repaid $48,000 in "personal expenses".
Former federal Liberal Party treasurer Philip Higginson quit in February with a letter slamming the lack of financial transparency and hinting at malfeasance in state divisions.
The Independent Broad-based Anti-corruption Commission was called on to examine secret phone recordings of senior Liberal figures in 2013, including Mr Mantach, though it was found an investigation was not warranted.
"I know Damien Mantach well. He is a person of integrity. So let's see where this investigation goes. He has my confidence," Tony Abbott said at the time when he was opposition leader.
Asked about the $1.5 million theft on Thursday, Prime Minister Abbott said it was a matter for the Victorian division of the party.
On a bad day for Mr Mantach, his Liberal Party email address was found in the leaked Ashley Madison database, although there is no evidence he specifically signed up to the site.
Mr Mantach did not respond to attempts to contact him on Thursday.
Victoria Police have launched an investigation.
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