Businessman jailed for $1.4m fraud

An Auckland businessman has been sentenced to three years and three months in jail for stealing $1.4 million from a family-owned business in Penrose.

Martyn Scott, 51, from Meadowbank, had been remanded in custody over Christmas until sentencing in the Auckland District Court today.

Scott pleaded guilty to Serious Fraud Office charges last year, which included using a computer for dishonest purposes while he was employed as the general manager of National Fire & Security - a security equipment supply business - that is owned by Steven Mahoney.

Scott stole $1.4 million between 2003 to 2009 by manipulating National Fire & Security's accounting system.

Owner Mahoney, who was also a former neighbour and a friend of Scott's, asked Scott to investigate where the money was disappearing to and why suppliers had not been paid.

Scott redirected invoice payments that were meant for suppliers to bank accounts he controlled. He varied the method to divert payments due to genuine suppliers.

The SFO notes that he has since paid back a significant amount of the money he stole.

National Fire & Security is an importer and distributor of low voltage electronic supplies.

The company was founded in 1991 and was taken over by Mahoney in 1995. Its website says CCTV systems are a growth area for the business.