Victoria Police have interviewed a 65-year-old sergeant who allegedly performed the Nazi salute on two occasions.
Police alleged the incidents happened while she was on duty and in front of colleagues at the Victoria Police Academy on Tuesday and Wednesday this week.
On Tuesday, she allegedly approached two colleagues and performed the salute while voicing heil Hitler.
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She allegedly did it again the next day during a training exercise with a recruit squad and another instructor.
The incident was reported and she was suspended with pay yesterday.
Professional Standards Command has today interviewed the female sergeant and released her without charge.
"A brief of evidence will be prepared regarding the incidents. Any charges arising would be expected to proceed on summons," Victoria Police said.
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Victoria Police Chief Commissioner Shane Patton was shocked to learn of the alleged incidents.
"I'm angry, I'm disappointed, I'm appalled at the conduct and we won't tolerate it," he said at a press conference today.
"I just can't fathom it. It's behaviour I wouldn't expect from any member of the community, let alone a police sergeant."
The 65-year-old has been part of the force for 40 years. Police said there is no known history of extreme views.
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The alleged incident has outraged the Jewish community, who Patton apologised to.
"It's an outright assault on the values and principles Victoria Police is sworn to uphold. This is a sad day for Victoria," Israeli academic and Anti-Defamation Commission chairman Dr Dvir Abramovich said.
A criminal investigation into the matter is ongoing.
If the sergeant is charged and found guilty, she will face possible dismissal from the force and will likely be charged with the maximum penalty of $23,000 or 12 months in jail.
On Wednesday, Jacob Hersant became the first person in Victoria to be found guilty of performing a Nazi salute in public.