Millionaire walks free after ACC retrial dropped

A millionaire accused of committing one of New Zealand's largest ACC frauds walked free this morning after a retrial was abandoned.

Ron Frederick Donaldson was accused of accident compensation fraud totalling more than $500,000 between 1988 and 1999 after he suffered a back injury lifting heavy steel.

In November 2003, Mr Donaldson was convicted by a jury on 44 of 79 charges of using a document to obtain a pecuniary advantage from ACC. In February last year, he was sentenced to three years' jail and ordered to pay back more than $370,000.

Mr Donaldson served more than eight months of his sentence in Waikeria Prison before being released to his Waihi Beach property on home detention.

An appeal was granted on the grounds of unfairness or abuse of process in his prosecution and error by the judge. A retrial was directed on all 44 counts.

However this morning, when a date was to be set for a new hearing, Solicitor-General Terence Arnold QC filed a stay of proceedings in front of Judge Robert Spear.

"There's a big rubber band put around it and it doesn't come off ... the stay is there, that's the end of the matter," Judge Spear said.

Mr Donaldson said he had wasted eight precious months of his life in a cell at Waikeria because of a disagreement with his former friend and business partner Leslie Wykes.

The two men's relationship soured over splitting the money made from selling their business and Mr Wykes then hired a private detective to look into his friend's affairs.

The same private investigator, Michael Campbell, was paid $100,000 by ACC as well as $20,000 by Mr Wykes to investigate Mr Donaldson.

Defence lawyer Warren Scotter said a very unsatisfactory part of the trial occurred when ACC's chief investigating officer Norman Reid and fraud prevention manager Jocelyn Leek gave evidence.

They told the jury Mr Donaldson should have told ACC about large capital payments Mr Donaldson made following the sale of the panel business to a Fletcher subsidiary.

"As a matter of law, that simply wasn't correct, but that is the impression that the jury were left with. It was hard for the jury to understand that ACC payments are quite different from, for example, unemployment and sickness benefits.

"Rich men are entitled to ACC payments. Entitlement is not affected by capital growth or cash windfalls."

Mr Scotter said Mr Donaldson was a "very personable, likeable character, absolutely brimming over with innovative and bright ideas".

As part of his sentencing in February 2004, Mr Donaldson was ordered to pay reparation of almost $380,000 but this was also quashed as a result of the stay.

Mr Donaldson said he was considering his legal options.

- nzpa