The wage subsidy scheme was designed to keep people in their jobs during Covid-19 lockdowns. Photo / 123RF
A man who fraudulently obtained almost $200,000 from the Covid-19 wage subsidy scheme, spending some of the funds on “adult entertainment” and gambling, wants out of prison.
But Nathan Peter Irvine Downey’s appeal against his 20-and-a-half months prison sentence has been declined.
Justice Layne Harvey, who heard the appeal in the High Court at Auckland last week, agreed with the assessment of sentencing Judge Mina Wharepouri, who said the abuse of the scheme was a “breach of trust”.
“Mr Downey’s offending involved repeated dishonesty of a system designed to help those most in need during that unprecedented time,” Justice Harvey said in his decision.
“While this specific offending cannot continue to occur as the system no longer exists, abuse of a system of this kind still requires specific deterrence for the future.”
Downey was convicted on 14 charges of dishonestly using a document and fraudulently acquiring approximately $196,000 from the Government scheme.
He made 19 applications, 13 of which were successful, providing details of “purported” employees, some known to him and some “entirely fictitious”.
The Ministry of Social Development (MSD), which administered the scheme, said Downey made the applications between March 23 and August 24, 2020, for his company Protective Systems Ltd.
At the time he was the sole director and shareholder of the Wairoa-based company which uses contractors to provide painting and fireproofing services.
He had used $57,000 to pay contractors, but the balance was for “personal expenses”, including online gambling, adult entertainment clubs and fast food, according to a statement from MSD.
At his sentencing last month in the Manukau District Court, it was heard Downey had repaid the money he had taken.
In appealing his sentence, Downey argued he should have received home detention.
His lawyer Claire Farquhar submitted Judge Wharepouri failed to recognise and place weight on “significant mitigating factors”.
These included remorse for his offending, rehabilitative efforts, full restoration of funds to MSD, and his low risk of reoffending.
Farquhar submitted the best environment for rehabilitation was in the community, not prison, and the judge did not take into account how her client would be impacted by a sentence behind bars.
Prosecutor Ollie Salt opposed the appeal, submitting Judge Wharepouri’s ruling should be upheld.
Salt said the offending was “demonstrative of greed” and the sentencing decision was principled and well-reasoned.
Justice Harvey said he took no issue with the starting point adopted by the sentencing judge.
“On the contrary, I consider that the starting point he determined is entirely appropriate for this kind of offending,” he said.
“Taking account of the relevant background circumstances including the purpose of the scheme during an unprecedented national pandemic.”
Hazel Osborne is an Open Justice reporter for NZME and is based in Te Whanganui-a-Tara, Wellington. She joined the Open Justice team at the beginning of 2022, previously working in Whakatāne as a court and crime reporter in the Eastern Bay of Plenty.
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