Man cleared of rescue trust fraud eyes SFO

Malcolm Beattie. Picture / Greg Bowker

One of four men yesterday found not guilty of defrauding rescue helicopter charities of millions of dollars says the Serious Fraud Office (SFO) should be held accountable for what he calls an "utterly misguided" investigation.

Malcolm Beattie, along with Wayne Porter, Peter Pharo, and Stewart Romley, had been charged with defrauding the Auckland Helicopter and ChildFlight Trusts by giving millions of dollars from pub gaming machines back to the pubs in the guise of advertising costs.

Mr Beattie today said he was investigating other legal options after the jury took just three hours to throw out the case, which the Serious Fraud Office had spent several years investigating and five weeks arguing at the High Court in Auckland.

While it was not possible to take the SFO to court over costs, he said there was "another avenue possibly open" to them.

"I am exploring that, but it would be wrong for me to give any details at the moment, I'm really being guided by my QC, John Billington, on this issue."

The defence said the Crown's case was one that jumped to conclusions, based on hindsight, and argued that the advertising agreement aimed to save the troubled helicopter trust.

Mr Beattie said the saddest thing for him was that he had no involvement any longer with the Auckland Helicopter Trust, which he helped found in 1970.

"Essentially the trustees wanted me out when the poo hit the fan, they didn't even want to talk about it and that wasn't very nice."

He said the investigation had probably hurt the trust's public image at the start.

"They had to close down the ChildFlight aeroplane service, and that hurt them quite a lot," Mr Beattie said.

"All of us give to charities and regard them highly, so if they are tainted in any way, then it hurts... so the verdict will be good for them too."

He said there was no doubt some people would always hold a negative impression of him and his co-accused just because they had been investigated.

"There are people who will say 'There's money gone, the SFO said he didn't get any money out of it but he must have done something for this to happen', and that sticks to you.

"But I guess your family, your friends, your business colleagues they believed in you and you have to take heart in that."

Aside from the huge financial burden of the case, which has taken nearly four years, he said the investigation had taken an "emotional toll".

However, he said he was "not looking for revenge".

"It's a shocking old cliche but it's true that life goes on. I'll continue with my business, being president of the volunteer surf life-saving club at Port Waikato, where I surf.

"Am I after utu? Is there revenge in my bones this morning? No, there's not. Will there be in a few days? I don't know, but I'm not driven by that.

"I'm just very grateful that my peers -- the jury of regular, middle-of-the-road, good Kiwis -- were able to discern fact from fiction."

He added: "I said all along, 'What the hell am I doing here?', and in the end, that's what the judge and jury said too."

The Serious Fraud Office refused to comment today on the outcome of the trial or claims from Mr Beattie that it must be held accountable.

SFO director David Bradshaw was not available but a spokeswoman from his office said today Mr Bradshaw had told her he had no comment to make on the trial.

She said the SFO was well aware of the claims by Mr Beattie.

- NZPA