Tua co-manager paid small-time crook $200,000

By PHIL TAYLOR

David Tua's co-manager Martin Pugh paid his friend, a petty criminal, more than $200,000 of the boxer's money.

Jenny Grant, an accountant who was employed by Pugh to do the boxing company's books, said in an affidavit that Pugh put Richard Gregory on the payroll of Tuaman Inc despite Gregory not doing anything for the business.

The money was paid to Sports Tech, a company Pugh and Gregory set up in Vanuatu, and in fortnightly "wages" of $1600 sent to Gregory's Queensland bank account.

"When I questioned Pugh as to why Tuaman Inc was paying Gregory, he was exceptionally vague," Grant said.

"Basically he told me to mind my own business and said that 'if I told you I'd have to kill you'."

As far as Grant - a key witness in court action between the boxer and his former managers - could discover, Gregory did nothing to justify the payments, which continued for almost three years until the Tuaman accounts were frozen in July after Tua fell out with Pugh and co-manager Kevin Barry.

Pugh later told her Gregory was a long-time friend and they were setting up a Vanuatu company to minimise tax.

But a chartered accountant hired by Tua has told the court "we fail to see the basis for this" and said no record of the company having sought expert taxation advice had been found.

Court documents filed by Tua's lawyers say the Vanuatu company fronted by Gregory was set up by Pugh to cover up "conversions, misappropriations and failures to account".

Pugh has denied any wrongdoing and said in court documents that Grant was forced to resign because of poor work, and that her subsequent actions might be motivated by this.

According to documents filed in the High Court, Pugh claimed Sports Tech was set up for Tua's benefit. In an affidavit Pugh gave a different purpose, claiming it was to protect assets "from litigation and wives".

No money appears to have flowed to Tua from Sports Tech, which ended up owning the Tuaman trademark, claiming to be a co-promoter and registering a $5 million charge over the boxer's coastal Pakiri property.

But Pugh appears to have received plenty. Of $1.14 million of Tuaman money sent to Sports Tech, $809,000 was transferred back to New Zealand, to the Baron And Lunar Trust.

This is said in court documents to be the family trust of Pugh and his partner, Sally Cross.

Herald inquiries indicate that Tua believed Gregory, a house painter and used car salesman, did odd jobs for his friend Pugh, such as painting his and Cross' Takapuna home.

Gregory left New Zealand in March last year, four months before Tua sacked his managers.

He was born Richard Michael Booth but changed his name by deed poll about 1999 - according to Pugh as a tribute to his brother, Gregory Booth, who died tragically.

He did not change his name until nine years after his brother's death, by when he had a criminal conviction and debt collectors on his back.

The Herald has copies of documents which show that soon after, he began receiving Work and Income payments under the name of R. Booth while also getting wages from a painting company which has confirmed it employed him as Richard Gregory.

Pugh has used Gregory as a dogsbody for more than a decade and as a front for his companies.

The Herald believes the $200,000 Gregory received from Tuaman funds may at least partly be in recognition for these services to Pugh.

Pugh, however, claims in his affidavit that a retainer was paid to Gregory for the services of his "nominee/trustee/asset protection business out of Vanuatu".

The Herald has been unable to question Gregory. Pugh has refused to provide his contact details overseas.