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Home / New Zealand

Ex-league chief admits grant fraud

6 Jun, 2007 05:00 PM4 mins to read

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A former New Zealand Rugby League chairman yesterday pleaded guilty to fraud charges when he appeared in the Wellington District Court.

Graham William Carden, 54, unemployed, admitted to six charges laid by the Department of Internal Affairs.

They were two counts of forgery, two of making a false
declaration and one count each of using a document with intent to defraud and dishonestly using a document.

The Crown yesterday withdrew a further 124 charges.

Judge Walker remanded Carden on bail for sentencing on August 3.

Department senior investigator Brent Tomlinson told the court Carden obtained high-interest financing to start a karaoke entertainment business in Porirua in 2002.

His financier set up a company, called Premier Music

Carden, although bankrupt, took control of and responsibility for the company and its bank account, using borrowed money to buy vehicles and karaoke equipment.

The company carried out its business in the Compass Bar in Porirua.

At the same time, WINZ gave Carden $35,000 to set up a karaoke operators' training course.

The course provided a limited amount of theoretical training before participants began working in licensed premises.

Carden called this the "work experience" component, Mr Tomlinson said, and it meant he was able to buy extra karaoke equipment.

At the time, the Compass Bar was owned and operated by an associate of Carden.

Two closely aligned charitable trusts had placed their gaming machines in this man's licensed premises.

The man was able to arrange and ensure the direction of approved financial grants to approved individual recipients.

An arrangement was made between the two men whereby Carden would receive approved grant cash.

Carden was then in a position of control where he could direct this money into two incorporated societies.

He arranged for the fraudulent incorporation of two societies - the Muspen Club and the Viking Sports Academy.

He called a meeting with his partner, her adult daughter and employees working for Premier Music.

He suggested they form a club to provide activities, training and learning for Porirua people.

He presented previously prepared documents and asked those present to complete an application for incorporation form.

Nine people did so. They did not understand the significance of the document, and thought they were simply getting club membership, Mr Tomlinson told the court.

Carden also forged the names, addresses, signature and occupations of six close family members on the form.

The Companies Office issued a certificate of incorporation for the club.

Carden then returned to the employees and said he had mislaid the original document.

He asked them to sign a new application for incorporation document for the Muspen Club.

Unlike the first form, this one did not have a title on top. Carden later completed the document with the title Viking Sports Academy.

The employees of Premier Music who completed the second form had no knowledge of the academy, the department said.

Carden forged the details of 10 people, including his 12-year-old granddaughter and 16-year-old grandson.

He applied for gaming machine grant money for both organisations, forging a variety of documents.

The purposes for which the grant funding applications were made were varied, and all but one were fraudulent, Mr Tomlinson said.

The Crown seeks reparation of $125,210.71.

The department says some of the money Carden obtained was withdrawn for his own personal use.

He transferred other amounts into the bank account of Premier Music and used it to make outstanding loan repayments the business owed.

He also made payments to a business owned by his partner and paid several personal debts including his telephone bill.

Mr Tomlinson said Carden partially admitted his involvement in the offending when interviewed but denied misappropriating the majority of the approved grant money.

He admitted forging the incorporation documents for the Muspen Club and the Viking Sports Academy.

He also admitted making declarations in relation to the same documentation that he knew were false.

Carden admitted misappropriating $12,000, but claimed that other money had been used for the purpose for which it was obtained.

- NZPA

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