Hawkes Bay accountant pleads guilty to fraud

Former Central Hawke's Bay accountant Warren Pickett has pleaded guilty to fraud charges relating to the loss of $20 million.

Pickett entered guilty pleas to all charges of fraud, false statements by a promoter and breaches of the Securities Act at the Napier District Court today. The charges relate to the collapse of finance companies Waipawa Finance Company and Waipawa Holdings Limited.

The companies went into liquidation in August last year owing $20 million to about 220 investors.

The judge denied Pickett bail, saying the charges relate to very serious offending, which occurred over 20 years. He says there can be no argument that Pickett will face a lengthy prison term. Pickett will be sentenced next month.

The Serious Fraud Office brought the charges against Warren Pickett, 63, following the collapse of his finance companies, Waipawa Finance Company Ltd and Waipawa Holdings, of which he was the sole director and principal shareholder.

The companies went into liquidation in August owing around 220 investors about $20 million, including accumulated interest of about $12 million.

The SFO laid three charges alleging Pickett misappropriated $3.7 million in investors' money between January 1, 1987 and August 30, 2008.

He also faces three charges of false statements by a promoter after he wrote to investors in October 2007 saying Waipawa Holdings had significant reserves and realisable securities with back-up facilities, that the reserves had recently increased and risk management strategies were coping.

The SFO alleged these statements were false and Pickett intended to deceive investors.

Pickett also faced two Securities Act charges after allegedly offering securities without a registered prospectus, trust deed, appointed trustee or investment statements, the SFO said in a statement.

Pickett could face a maximum of seven years' imprisonment on the fraud charges and 10 years for false statement charges.


NEWSTALK ZB/NZPA