Fraudster who fleeced own sister jailed

A failed magazine publisher who defrauded Heartland Bank and fleeced his own sister has been jailed for 3 years.

Victor Clarke, 62, appeared in the Auckland District Court for sentencing before Judge Claire Ryan after pleading guilty to charges of obtaining by deception, of using a forged document and false accounting.

While some of the offending related to his business, MediaWeb, another part involved him deceiving his sister, which meant she has now lost her Devonport home and has been forced to move outside of Auckland.

She was later diagnosed with breast cancer, the court heard today.

Clarke himself, who walked into court with the aid of a walking stick, suffers from numerous health issues.

He and his partner are both bankrupt, the court heard.

MediaWeb, started by Clarke and Toni Myers, produced a number of industry-related titles including NZ Management Magazine.

Its main revenue source was an annual event celebrating the country's top 200 businesses.

Clarke falsified financial statements to present a positive picture of the company's financial position, created fictitious entries into the company's accounting system to obtain money from Heartland Bank, forged emails, and failed to disclose the true financial position of the company to obtain funding from his sister's trust, which owned her home.

Clarke's lawyer Mina Wharepouri said while his client did engage in a scheme designed to defraud, this was not born from a desire to "feather his own nest" and rather was a strategy to bring about breathing space for the business which he truly believed could be resurrected.

Clarke and his partner had been left penniless by the business' collapse, Wharepouri said.

MediaWeb was placed into receivership on March 5, 2014, and then into liquidation later than month, owing creditors more than $2 million.

The loss to Heartland Bank was around $1.1 million, while Clarke's sister had lost around $200,000 as well as the ability to use her family home, the court heard.

SFO prosecutor Nick Williams said the offending relating to Clarke's sister was an "appalling breach of trust".

The home had been put into a trust to provide for Clarke's sister, who had her own health issues, the court heard.