Former iwi social services boss found guilty of fraud

Serious Fraud Office chief executive Adam Feeley Photo / Dean Purcell

A former iwi social services boss has been found guilty on fraud charges totalling about $147,500.

Arapeta Victor Hamilton, a former director and chief executive of Ngapuhi Iwi Social Services Limited (NISS), was found guilty before Judge Graham Hubble in Auckland District Court today on five charges brought by the Serious Fraud Office (SFO).

He will be sentenced on August 3.

The court was told that NISS was a Northland company set up to deliver services to Maori children through government and community-funded contracts from 1997 to 2006.

As chief executive, Hamilton had overall responsibility for the finances and business management. His offending took place between 2000 and 2002.

During that time, Hamilton was found to have fraudulently diverted NISS funds totalling about $147,500 to cover personal expenses, including mortgage repayments and investments in a nightclub.

Concerns about the company finances were eventually raised at board level and Hamilton was relieved of his financial authority in June 2004.

SFO chief executive Adam Feeley said that Hamilton's actions were a violation of his trusted position within both NISS and the community.

"Mr Hamilton took advantage of his position for personal financial gain and, in doing so, has defrauded the organisation of valuable funds intended to enhance the local community.

"The guilty verdict in this case is a positive outcome and we hope it will provide some justice for those affected by Mr Hamilton's actions."

Mr Feeley said the case highlighted the need to have effective fraud prevention policies which have particular regard to the trust and authority conferred on key persons within their organisation.

- NZPA