Media agency director found guilty of fraud

Media Release

27 March 2015

Media agency director found guilty of fraud

Glenda Mary Wynyard (49) has been found guilty in the Auckland District Court today of eleven out of thirteen Crimes Act charges laid by the Serious Fraud Office (SFO).

The former director and owner of The Media Counsel (TMC), a media placement agency, had been on trial for five weeks. She faced two charges of causing loss by deception, seven charges of theft by person in a special relationship and four charges of dishonestly using a document in relation to approximately $1.8 million of payments to media suppliers and client invoices.

Ms Wynyard was convicted of redirecting payments that were due to her accredited agency, Aegis, to repay a debt under an invoice factoring facility. Ms Wynyard was also convicted of presenting cheques she knew would not be honored and for providing false and misleading information to the Print Media Accreditation Authority in order to gain accreditation.

Ms Wynyard was acquitted on one count of causing loss by deception and one count of theft by person in a special relationship.

SFO Director, Julie Read said, “New Zealand’s reputation as a safe place to invest and do business supports all businesses in New Zealand. This case demonstrates the importance of transparency and integrity when conducting business, especially in hard times where these boundaries can become blurred.”

Ms Wynyard will reappear for sentencing on 24th April.

ENDS

Note to editors

Background to investigation

The Media Counsel (TMC) was incorporated on 14 December 2005 and went into liquidation on 22 April 2010.

TMC was a media placement agency that provided services in media planning, media buying, public relations, consumer insights and event management. Prior to its liquidation, TMC employed approximately 24 staff.

In late 2008, TMC entered into an invoice financing agreement with Marac Finance (Marac). This agreement enabled TMC to obtain advances from Marac. In November 2009, after losing its own accreditation, TMC entered into an agreement with Aegis Media New Zealand Limited (Aegis) to provide media buying services as TMC’s accredited agency.

In February 2011, Ms Wynyard left New Zealand to live in Australia. Ms Wynyard returned from Australia to face the SFO charges in 2013.

Crimes Act Offences

Section 228 Dishonestly taking or using document

Every one is liable to imprisonment for a term not exceeding 7 years who, with intent to obtain any property, service, pecuniary advantage, or valuable consideration,—

(a) dishonestly and without claim of right, takes or obtains any document; or

(b) dishonestly and without claim of right, uses or attempts to use any document.

Section 220 Theft by person in special relationship

(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—

(a) to account to any other person for the property, or for any proceeds arising from the property; or

(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.

(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.

(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.

(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.

Section 240 Obtaining by deception or causing loss by deception

(1) Every one is guilty of obtaining by deception or causing loss by deception who, by any deception and without claim of right,—

(a) obtains ownership or possession of, or control over, any property, or any privilege, service, pecuniary advantage, benefit, or valuable consideration, directly or indirectly; or

(b) in incurring any debt or liability, obtains credit; or

(c) induces or causes any other person to deliver over, execute, make, accept, endorse, destroy, or alter any document or thing capable of being used to derive a pecuniary advantage; or

(d) causes loss to any other person.

(2) In this section, deception means—

(a) a false representation, whether oral, documentary, or by conduct, where the person making the representation intends to deceive any other person and—

(i) knows that it is false in a material particular; or

(ii) is reckless as to whether it is false in a material particular; or

(b) an omission to disclose a material particular, with intent to deceive any person, in circumstances where there is a duty to disclose it; or

(c) a fraudulent device, trick, or stratagem used with intent to deceive any person.

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