Former trustee of Far North Māori trust heads to trial over $1 million fraud

A High Court trial will be held next year for Stephen Henare, a former trustee of the Parengarenga 3G Trust. Photo / File

A former trustee of a Far North Māori trust which helps underprivileged people will stand trial next year accused of stealing $1 million from the fund.

Stephen Henare, 60, faces six charges of theft by a person in a special relationship.

He was a trustee of Parengarenga 3G (P3G) Trust, which manages a large forest on Māori land in Tai Tokerau District, and was appointed along with his sister Margaret Dixon and five other people in June 2012.

About $1.1m was transferred from the Māori Trustee to P3G bank accounts in August 2012 for the management of the 512-hectare forest block.

A further $54,480 was also obtained by the trust from the sale of carbon credits.

However, instead of using the money for its intended purpose, Dixon transferred $934,270 into various bank accounts, including personal accounts and family trusts.

It is alleged Henare assisted his sister in moving the money out of the trust's accounts.

His case was called this morning in the High Court at Auckland before Justice Simon Moore.

The short hearing ended with Henare being remanded on bail until his two-week trial next May.

Henare also faces a separate charge of intentionally failing to deal with an additional amount of $149,627 in accordance with the P3G Trust order, and one charge of attempting to pervert the course of justice.

Margaret Dixon, pictured leaving the Auckland District Court, has already been sentenced. Photo / Sam Hurley

His 59-year-old sister has already been convicted and sentenced for her part in the scandal.

In July, Judge David Sharp sentenced her in the Auckland District Court to 12 months' home detention.

Dixon earlier pleaded guilty to three representative charges, laid by the Serious Fraud Office, of theft by person in a special relationship.

The court heard at Dixon's sentencing her personal gain was $130,836.

Although Dixon is not in a position to pay any of the money back, Judge Sharp ordered a reparation payment.

"I know that it's a gesture only but there will be a reparation payment order made of $5000," Judge Sharp said.

The judge said Dixon's offending was premeditated and steps were taken to hide the crimes, including lying to the Māori Land Court.

Dixon and Henare are no longer trustees of the trust.