Drainage firm director sentenced to home detention for deception over Christchurch earthquake repairs

Alligator Drainage Limited director Graham Lilley has today been sentenced to 10 months home detention in Christchurch District Court, having pleaded guilty to 21 deception charges under the Crimes Act following a Commerce Commission and Police investigation into drainage repairs conducted on earthquake damaged properties.

The Commission began investigating Alligator Drainage in November 2013 after media reports raised allegations the firm was undertaking repairs on properties having told its customers they would be fully reimbursed by the Earthquake Commission (EQC) without prior EQC authorisation.

The Commission took its investigation to the Police, who filed charges of obtaining by deception in May 2014.

The 21 charges Mr Lilley pleaded guilty to relate to misrepresentations he made between August and October 2013 to 16 separate Christchurch landowners involving 18 properties. In total, these landowners paid over $220,000 to Alligator Drainage for repairs.

Consumer Investigations Manager Stuart Wallace said, in three cases, the EQC found drainage repairs were not needed.

“Mr Lilley deceived these earthquake victims into paying for work that was at times either inflated in cost, or in some instances was not needed at all, by falsely claiming he had an arrangement with the EQC ensuring they would be fully reimbursed without the need for prior EQC authorisation. In some cases he went as far as to manipulate landowners by claiming their health was at risk due to leaking sewerage, when nothing was wrong,” Mr Wallace said.

“The Commission has been prioritising complaints about potentially illegal behaviour related to the Christchurch rebuild and working with other agencies where appropriate. We are pleased that this case has finally been resolved and Mr Lilley has admitted the offending. Hopefully today’s sentencing provides some closure for the affected landowners who have been left out of pocket and suffered the stress of his offending.”

Alligator Drainage was placed in liquidation in March 2014, owing creditors just over $470,000.

Of the initial total loss of $220,000 borne by the landowners in this case, just over $100,000 has or will be repaid to complainants through EQC retrospectively approving some claims and reparation payments by Mr Lilley to other consumers.

Mr Lilley has already paid $20,000 in reparation to the court and has been ordered to pay a further $10,400 over the next two years at $100 per week.

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