Businessman jailed over stolen sandalwood

A Perth businessman has been sentenced to more than two years in jail after he was found with over $1 million worth of illegally harvested sandalwood.

Stephen John Darley, 56, was the sole director of AustOils Pty Ltd in 2013 when 96 tonnes of stolen sandalwood lumber was discovered at properties he controlled and 200 tonnes of sandalwood byproduct was found at his Bibra Lake distillery plant.

Sandalwood is so valuable even the byproduct, known as spent charge, was worth about $200,000.

The District Court of WA heard during sentencing on Friday that Darley disagreed with the state government's strict regulation of the industry, which at the time of his offending limited the total annual harvest to 3000 tonnes.

The court heard he felt the tight restrictions had led to a handful of companies monopolising the lucrative industry.

Darley's business plan required 400 tonnes per annum and he applied to the Forest Products Commission for a harvest licence, but was rejected.

He pushed ahead with his enterprise and when he was found with the wood, did not have corresponding documentation to prove it had been legally harvested.

Judge Linda Petrusa noted he had been convicted in 1998 of taking protected flora - a variety of Melaleuca - so he was well aware licences were required, she said.

He had always been self-employed, and had companies registered in Australia and overseas, so there was no scope to suggest his offending was due to naivety, inexperience or imprudence, she said.

"You stood to make considerable profit," Judge Petrusa said.

"Your involvement in this enterprise was solely for commercial gain."

Darley appeared shocked when he was sentenced to 26 months behind bars.

He will be eligible for parole after he has served half of that term.