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Home / New Zealand

$680,000 fraud revealed after trusted man retires

NZPA
1 Jul, 2008 05:00 PM2 mins to read

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KEY POINTS:

A trusted supervisor who spent 15 years defrauding a company of $684,278 was jailed for 25 months when he appeared in Christchurch District Court yesterday.

Judge Raoul Neave imposed the jail sentence on 66-year-old Barry Harvey Smith, a retired married man, who had admitted seven dishonesty charges.

He
said he accepted the views of Crown prosecutor Tim Mackenzie that home detention was not a sentencing option, even though Smith was elderly, ill, and had repaid almost half the money.

"Deterrence and denunciation are vital, as well as holding you accountable for the harm done.

" There has been a significant effect on the victim and its financial losses are substantial.

"It would not be sending the appropriate message if I were to impose a sentence of home detention."

The name of the company Smith defrauded has been suppressed, but Smith's name was not suppressed and the company has agreed to his name being published.

Defence lawyer Paul McMenamin said Smith had begun by helping out customers who were having difficulties paying. When he came under financial pressure himself, he continued the offending to help him meet the expenses.

There had been no amassing of wealth nor an extravagant lifestyle. He and his wife had changed cars regularly and had taken one or two trips, but it was the length of time that led to the amount of the fraud being so high.

The couple sold their house and "scraped the bottom of the barrel" to raise $300,000 in reparations.

They would depend on their children for support. Smith had already had a coronary artery bypass and needed a further operation. He had occasional angina attacks.

"With the woeful outlook for the remaining years of his life, a sentence of imprisonment may be somewhat harsher than is needed," Mr McMenamin said.

"Mr and Mrs Smith will have nothing to show for their lives' endeavours."

Judge Neave said Smith had been employed by the company for 22 years. The discrepancies were discovered after he retired this year and the company was staggered to discover the money was all gone.

"You were clearly living beyond your means. and you chose to continue to do that at your employer's expense. You have really condemned yourself and your wife to a life of dependency on your children and the state as a result of your offending."

- NZPA

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