Millionaire's ACC rap thrown out on appeal

A self-made millionaire who has spent 10 months in jail, convicted of one of New Zealand's biggest accident compensation frauds, has had his convictions overturned and a retrial ordered.

But the Court of Appeal, which made its ruling yesterday, has suppressed all reasons why.

Ronald Frederick Donaldson was sentenced to three years in jail in February this year after being found guilty on 44 counts of defrauding ACC.

His case was touted as being one of the biggest ACC frauds the corporation had detected.

At appeal, Philip Morgan, QC, argued the prosecutor's opening address at last year's trial was inappropriate and Judge Robert Wolff's approach in explaining to the jury what was required to establish intent to defraud was wrong.

Mr Donaldson has served 10 months of his prison sentence and is now serving home detention at the Waihi Beach house he shares with his wife Robin.

Mrs Donaldson told the Herald they were still trying to digest the Appeal Court ruling. "We're really happy with what's been done, it's still early days and we're still feeling our way."

Meanwhile, ACC says it will continue its prosecution of Mr Donaldson.

 

Mr Donaldson, 61, started claiming ACC after injuring his back at the Rotowaro Coal Mine near Huntly in 1988.

He originally faced 79 counts which covered 10 years of compensation paid by the corporation, totalling $495,000.

He was convicted of 44 charges totalling about $250,000 in November last year.

At his trial last year the court was told that after his back injury Mr Donaldson had entered into business ventures with Huntly friend Les Wykes.

The pair ran a boat-building business for a short time before inventing a new housing construction method called Tri-panel which was eventually sold to Fletchers for $2.2 million.

However, the pair fell out when the business was sold and Mr Wykes employed a private investigator, who in turn told ACC about the alleged fraud.

ACC then employed the same investigator to look into Mr Donaldson's affairs.

Crown prosecutor Jonathan Temm said in the 10 years Mr Donaldson received ACC, $7.3 million turned over in his bank accounts.

At trial, Mr Donaldson's lawyer, Warren Scotter, said the money Mr Donaldson received was investment returns which did not affect his ACC entitlement and said what he did was better described as socialising than work.

 

ACC CASE

Ronald Donaldson was sentenced to three years in jail in February after being convicted of defrauding ACC.

ACC said Donaldson was paid $1082 a week over 10 years for a back injury.