Rescue charity money went back to hotels and taverns, court told

A huge amount of money was siphoned off a gambling fund raised by pub pokie machines intended for ten rescue charities, a High Court jury in Auckland was told today.

Serious Fraud Office prosecutor Nicholas Davidson, QC told the jury that four men from the GoldTimes Trust gave most of the money it raised from pokie machines in Auckland pubs to the Auckland Rescue Helicopter Trust and the ChildFlight Trust -- rescue organisations that ran Auckland's Rescue Helicopter and a child's air ambulance.

However, the two trusts advertised their services at hotels and taverns, in which the four men now facing fraud charges held an interest.

Mr Davidson told the jury a huge slice of the gambling funds went straight back to those hotels or taverns.

The four each face two charges of conspiring to defraud two Auckland rescue trusts, the Auckland Rescue Helicopter Trust, which operates the red and yellow Westpac rescue helicopter, and the ChildFlight Trust, which operated an air ambulance for child patients.

Malcolm Beattie, one of the founders in 1970 of the surf rescue helicopter which developed into the rescue helicopter trust, is on trial with Wayne Porter, Peter Pharo and Stewart Romley.

Each of the four men, all in their 60s, were charged after an SFO investigation which began in 2002. They have all pleaded not guilty.

The SFO alleged grants from pub gaming machines were dishonestly returned to the pubs in the guise of "advertising costs".

Porter and Pharo owned or held an interest in the Birdcage, the Palace Tavern, the Strand Tavern, Cazino Bar and Goldie's Casino, where the gaming machines operated.

The machines were owned by the GoldTimes Trust in which all four accused held varying roles.

The GoldTimes Trust distributed profits to the community for authorised purposes but the SFO alleged the money paid to the Auckland Rescue Helicopter Trust and the ChildFlight Trust was heavily reduced after payments for advertising were made to the pubs far beyond any proper advertising expenditure.

- NZPA