26 July 2013

Joint agencies achieve first guilty plea in invoice scam operation

One of the defendants arrested in October last year in a major joint enforcement agency operation lead by the Serious Fraud Office (SFO) has pleaded guilty.

Auckland resident Terran Elizabeth Dow (47) entered guilty pleas to five Crimes Act charges in the Wellington District Court this morning.

In conjunction with the New Zealand Police, the Organised and Financial Crime Agency of New Zealand, the Commerce Commission, New Zealand Customs, and Inland Revenue, SFO conducted search warrants and other activity in 25 locations in the North and South Islands last year for an investigation labelled Operation Edit. This joint action by 67 staff resulted in six arrests in an alleged advertising invoice scam.

Ms Dow has been convicted for her part in selling advertising in magazines that were either never printed, or the number of magazines that were printed and circulated was grossly exaggerated. The magazines were generally titled in a way that suggested worthwhile causes in subjects such as road safety, parenting or drug addiction. It is alleged that the scam had generated up to $1.6 million since 2008.

Acting SFO Chief Executive, Simon McArley said, “Operation Edit has been an example of our increasing focus on joint agency activity. Sharing the specialist skills of those agencies results in timeliness and efficiencies in all areas. SFO are still working with the other agencies on Operation Edit as we continue the prosecution of the other defendants.”

One defendant, Anthony John Hendon is yet to enter a plea. The three remaining defendants in this matter; Noelene Kay Banton, James Stephen Burns, and Johannes Hendrik Maria Middledorp have been committed for trial.

ENDS

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