Ex-Kiwis captain McGahan to be sentenced over $2m fraud

Hugh McGahan. Photo / Hugh McGahan

Former Kiwis rugby league captain Hugh McGahan is to be sentenced next month for his part in a $2 million pokie scam, which also involved former team-mate Brent Todd and former All Black Doug Rollerson.

McGahan pleaded guilty to four charges of conspiracy to use a document to defraud the North Harbour Rugby Union and Touch NZ at a sentence indication hearing in the Auckland District Court this week.

The Sunday Star-Times reported McGahan had sought the indication hearing before changing his plea to guilty.

The Serious Fraud Office (SFO), which brought the charges, had alleged the fraud was masterminded by business partners Brent Todd and Stanley Wijeyaratne who operated a number of bars in Auckland associated with gaming trusts.

Proceeds from pokie machines were paid to the trusts and grants to sporting bodies and others were then made by the trusts, often after applications received via the bars.

The prosecution said that where successful applications for gaming grants were made to the North Harbour Rugby Union and Touch NZ, shortly afterwards false invoices from McGahan's company Lateral Vision would be sent to the two organisations for services amounting to approximately 50 per cent of the grants made.

Between August 2002 and November 2004 invoices totalling almost $400,000 were sent with McGahan passing on 90 per cent of the funds to Todd and Wijeyaratne, taking a 10 per cent cut for himself.

In the case of Touch NZ after grants were received false invoices were issued by Lateral Vision. McGahan benefited from his involvement as his employment contract with Touch NZ enabled him to charge 20 per cent on grant funding received.

Todd was sentenced to 12 months home detention and 190 hours community service after pleading guilty to four fraud charges, as did co-accused Wijeyaratne.

Todd had already paid back $300,000.

Wijeyaratne was fined $50,000 and told to make $400,000 reparations.

Rollerson was convicted and freed without penalty. He had earlier pleaded guilty to two charges of fraud.

Former Touch NZ chief executive Alistair Arnott, Geoffrey Thompson and a woman with name suppression have denied charges and will defend them at a six-week trial in Auckland District Court beginning in July.

- NZPA