'Good friend' stole $1.4m from business

Photo / Martin Sykes

Martyn Scott sent three children to King's College, took them on overseas holidays, lived in Epsom and drove European cars on a $75,000 salary.

How did he afford it? Stealing $1.4 million from his friend's family business would have helped.

Scott, 51, was sentenced to three years and three months in prison in the Auckland District Court yesterday after spending the festive season behind bars. He pleaded guilty to fraud charges last year that relate to dishonest use of a company computer.

Scott worked as an accountant for National Fire & Security, a security equipment supply business in Penrose, and stole $1.4 million between 2003 and 2009.

He diverted genuine invoices to his bank accounts that resulted in creditors not being paid, said the Serious Fraud Office, which took the case against Scott.

He made double payments of genuine invoices, sending the second payment to one of his bank accounts.

And he created false invoices to substantiate other payments he made to himself.

Despite this the company is still trading.

Scott has repaid more than $600,000 to the Mahoney family but has left them with a $1 million debt.

National Fire & Security director Steven Mahoney said he hired Scott because he was a former neighbour and a good friend.

Scott left Mahoney with an $800,000 debt that grew to more than $1 million with interest and penalties.

Mahoney, 54, said Scott hid his tracks well and when questioned on his lavish lifestyle said his mother was very wealthy and paid the school fees.

"I should be able to repay that amount [$1 million] in 19 years, so I should be able to retire at 73. What he stole is my children's inheritance and our retirement savings. It leaves a very bitter taste in my mouth.

"He has done his children great harm, giving them this privileged life based on theft. I don't think he is remorseful at all. He has never apologised for what he's done," Mahoney said.

SFO general fraud and corruption manager Nick Paterson said Scott's repayment and early guilty plea had been taken into consideration in sentencing.

Paterson said all fraud cases, no matter how much money was involved, were important.

"This should give the public more confidence as investors, and in the financial market."