Former MP in alleged pokie scam 'seemed genuine'

The link between a former MP and an Auckland businessman allegedly involved in a pokie machine scam at first seemed legitimate, a court has heard.

The former MP supplied books to a children's charity that were paid for by funds from a charitable gaming trust run by an associate of his - an Auckland businessman and his wife.

All three, with another businessman, from Christchurch, are facing a total of 17 charges for their roles in the $1.8 million scam. All the accused have name suppression.

The scam also involved alleged fraud in relation to Auckland tennis clubs and a number of companies set up around gaming machines between 2003 and 2005.

Both businessmen have conceded they have a prima facie case to answer. The Christchurch man will face a High Court trial in November while the Aucklander will next appear in court in December.

A depositions hearing at the Auckland District Court heard that the businessman allegedly advised the children's charity they could get funds from his trust through money from pokie machines on the condition the funds were used to pay for books provided by the former MP.

The former politician is then alleged to have paid part of the money back to the Auckland businessman through companies owned by him, his wife and another accused, a businessman from Christchurch, in what the Serious Fraud Office likened to a "fraudulent money-go-round".

The MP is charged with one count of conspiring to use documents dishonestly with intent to obtain a pecuniary advantage and one of attempting to obstruct the course of justice after he allegedly created a fake receipt book.

Brendan Cook worked at the children's charity and initially thought the deal was "genuine" but only found out later of the extent of the relationship between the former MP and businessman, he told the court.

The depositions hearing for the former MP and the Auckland businessmen's wife continues today.