Rotorua man guilty of $15 million fraud

A Rotorua man has been found guilty of ripping off nearly $15 million from investors, including $100,000 from a failed Northland Maori Health and social services provider.

Bill Papple stood emotionless in the dock when the jury foreman read out the guilty verdict in the Rotorua District Court this week.

The jury took just over three hours to reach the verdict.

Although Judge James Weir granted Papple bail until his sentencing, he made no promises about Papple escaping a jail sentence.

Papple had been on trial in the District Court after pleading not guilty to a charge of conspiring to commit fraud between July 2000 and September 2002.

The $15 million fraud included Northland Maori health and social services agency Te Hau Ora O Tai Tokerau (Thott), which invested $100,000 of taxpayers' money into Papple's scheme.

Papple was jointly charged with his wife, Margarite Huia Papple, and Tina Marie West.

The latter pair are serving five-year jail terms after being found guilty last November.

That jury could not decide whether Bill Papple was guilty and another trial was ordered.

On Tuesday Judge Weir remanded Papple on bail for sentencing on October 14.

For two years, the Papples and Ms West ripped off more than 120 people, mostly from the Bay of Plenty.

Their victims included several high-profile Auckland businessmen, a church leader, a bank manager and a policeman.

Many were family, friends or involved with the Papples through the Mormon church in Rotorua. Investors were told varying stories and offered interest rates of up to 100 per cent a month.

According to the Serious Fraud Office, around half the invested money was used as supposed interest payments, a quarter was spent on personal items such jewellery and property and the rest invested in "crazy schemes that failed miserably".

Te Hau Ora O Tai Tokerau (Thott) went into voluntary liquidation on August 7, 2003, after Child Youth and Family (CYF) withdrew contracts worth $3 million.

Its debts totalled about $1.75 million, $1.3 million of which is being claimed by CYF.

Insolvency Service insolvency manager Jennifer Horgan said the Thott investigation was continuing and had yet to be completed.

However, she made an interim payout to some creditors last month.

- NORTHERN ADVOCATE (WHANGAREI)