Govt stole my money, claims $3.4m fraudster

Convicted faudster, Wayne Patterson, received 8 years imprisonment for defrauding the New Zealand Government out of $3.4 million. Photo / NZ Herald

New Zealand's biggest benefit fraudster, who swindled more than $3 million from the tax payer, is accusing authorities of "legalised theft" after his solid investments earned the Government more than he stole.

Wayne Patterson faked 123 identities to gain $3.4m in benefit payments over three years, before being caught in 2006 and jailed for eight years.

Patterson wrote to The Dominion Post from Whanganui Prison angry that he had been forced to pay the Government more than his original theft.

The Social Development Ministry has now recovered $5.5m, a profit of $2.1m, and said he had been ordered to pay a total of $8.6m, "even though I only took $3.4m", he told the paper.

But Social Development Ministry chief executive Peter Hughes said any expectation Patterson should profit from his crimes was "as appalling as it is outrageous".

It was initially thought the Government would stand to gain $467,000 from the profit on Patterson's overseas investments but with the help of Apple shares they returned more than $1m.

The ministry said it had now claimed more than $3.4m and was chasing another $1.5m tied up in Austria.

Patterson claimed his human rights had been violated after secret Austrian court hearings.

But Mr Hughes said he failed to understand how Patterson felt his human rights were violated through the recovery process.

"Instead of whining from his prison cell, he might wish to give a little more thought to the rights of the taxpayers he stole from," Mr Hughes said.

- NZPA