Three former members of the Royal Australian Navy have avoided jail time after defrauding the defence force of more than $120,000 by lying about the breakdown of their respective marriages.
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Instead the man, his former wife and her new partner will serve at least 18 months of a suspended sentence on each entering a good behaviour order.
The court heard they had since repaid the more than $120,000 they dishonestly accepted in entitlements.
Maria Mathews, 53, and Philip Mathews, 54, married in January 1999.
Maria Mathews was a cook in the navy, and her husband worked as a clearance diver. In 2007, the couple, both holding the rank of Leading Seaman, were posted to Royal Australian Navy units in Darwin.
Two years later, Maria Mathews was posted to HMAS Manoora in Sydney.
While posted to Sydney, Maria Mathews started a new relationship with a senior officer, Malcolm Woods, 49, who was directly above her in the chain of command. Woods' marriage had also recently ended.
But while they had started by claiming legitimate entitlements, all three failed to meet their obligations to tell the defence force about their respective marital breakdowns.
Maria Mathews and Woods also made denials in 2010 when questioned about the existence of an inappropriate relationship between them, court documents said.
While emails between Maria Mathews and Woods revealed that all parties were aware of the others' relationship status.
Largely, the money they had claimed was for rent assistance, but it also included remote location and reunion travel and food allowances.
Between 2010 and 2012, Maria Mathews dishonestly claimed, for example, more than $22,000 for an apartment in Pyrmont, Sydney, $8000 in separation and food allowance, and $3000 in reunion travel.
Maria and Philip Mathews together claimed nearly $36,000 in subsidised service residence housing at the RAAF base in Darwin, in the Northern Territory.
While Woods illegally claimed more than $6000 in separation allowance, nearly $7000 in food allowance, $27,000 in rent assistance for a Kings Cross, Sydney apartment and $1900 in reunion travel.
The three, who remain friends, pleaded guilty to a charge each of dishonestly obtaining a financial advantage by deception, while Maria Mathews was also included in her former husband's charge.
Prosecutors said the trio were motivated by financial gain, and there was no evidence they were struggling financially.
They called for the group to be jailed for the crimes.
But their defence said the crimes were opportunistic, and not driven by greed.
They were not sophisticated, the defence said, and they were obvious.
The relationship between Maria Mathews and Woods continues as does the relationship between Philip Mathews and his new partner.
All three are now living in remote regions of Australia.
Justice Chrissa Loukas-Karlsson sentenced the trio to 18 months imprisonment suspended on them entering a good bevhaviour order.
Maria Mathews, who was charged with two offences, will serve an extra four months.
The judge told the group that it was clear they were remorseful, and of how their references spoke highly of them.
She urged them to make a fresh start.
