FORMER Health Services Union (HSU) boss Kathy Jackson has been ordered to pay more than $1.3 million in compensation to the union for misappropriating funds.
The union sued Ms Jackson in the Federal Court, alleging she had set up a slush fund with the proceeds of a union settlement with the Peter MacCallum Cancer Centre in Melbourne.
They alleged she then funnelled the money into an opulent lifestyle, including significant cash withdrawals, luxury goods, valuable artwork and fine wine and dining.
She was also accused of spending up to $100,000 of HSU money on her divorce from former union figure Jeff Jackson.
She declared bankruptcy just before the Federal Court trial last month and chose not to attend.
Lawyers for the HSU said the misappropriated money was siphoned out of the National Health Development Account, set up by Ms Jackson, and that contrary to her claims, there was no evidence that all branches contributed for researching and campaigning purposes.
Update your news preferences and get the latest news delivered to your inbox.