Media Release

4 April 2017

Public health care provider and Trust are victims of alleged fraud

Two people have appeared at the Manukau District Court in relation to a Serious Fraud Office (SFO) prosecution alleging fraud committed against a public health care provider for people with intellectual disabilities and a Trust set up to settle treaty claims.

The pair were charged in January this year and given name suppression. Name suppression has now been lifted for one of the defendants.

Saul Brendan Roberts, the former Asset Manager for Te Roopu Taurima O Manukau Trust (Te Roopu) and Trustee at Te Kawerau Iwi Tribal Authority (Te Kawerau), faces five charges under section four of the Secret Commissions Act.

The other defendant is a supplier of goods and services to Te Roopu and faces two charges under section three of the Secret Commissions Act as well as Crimes Act charges. They include one charge of ‘Theft by person in special relationship’, two of ‘Dishonestly taking or using document’ and one of ‘Obtaining by deception’.

The SFO alleges that Mr Roberts received secret commission payments in return for contracting work to certain suppliers to Te Roopu, including businesses owned by the other defendant. Mr Roberts is alleged to have received a certain percentage of each invoice as a cash kickback. He is also alleged to have arranged a secret commission payment during his employment at Te Kawerau.

SFO Director, Julie Read said, “Deliberate acts of fraud against a public health care provider and a charitable trust are completely unacceptable and a matter of huge public concern. The SFO’s role is to prosecute matters on behalf of New Zealanders in order to keep public services free from corruption.”

The defendants will reappear in the Manukau District Court on 12 May 2017.

ENDS

Background to investigation

Te Roopu Taurima O Manukau Trust (Te Roopu) is a publicly funded health provider based in Otahuhu, South Auckland. Te Roopu provides long term residential health care for people with an intellectual disability who are unable to be supported in their home. Te Roopu owns a number of properties around the country and funding is provided by the Ministry of Health.

Te Kawerau Iwi Tribal Authority (Te Kawerau) is a Charitable Trust established to benefit the people of Te Kawerau a Maki and settle that tribe’s treaty claims.

Crimes Act offences

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 228 Dishonestly taking or using document

(1) 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.

(2) Every person is liable to imprisonment for a term not exceeding 3 years who, without reasonable excuse, sells, transfers, or otherwise makes available any document knowing that —

(a) the document was, dishonestly and without claim of right, taken, obtained, or used; and

(b) the document was dealt with in the manner specified in paragraph (a) with intent to obtain any property, service, pecuniary advantage, or valuable consideration.

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.

(1A) Every person is liable to imprisonment for a term not exceeding 3 years who, without reasonable excuse, sells, transfers, or otherwise makes available any document or thing capable of being used to derive a pecuniary advantage knowing that, by deception and without claim of right, the document or thing was, or was caused to be, delivered, executed, made, accepted, endorsed, or altered.

(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.

Secret Commissions Act offences:

Section 3 Gifts to agent without consent of principal an offence
(1) Every person is guilty of an offence who corruptly gives, or agrees or offers to give, to any agent any gift or other consideration as an inducement or reward for doing or forbearing to do, or for having done or forborne to do, any act in relation to the principal’s affairs or business (whether such act is within the scope of the agent’s authority or the course of his employment as agent or not), or for showing or having shown favour or disfavour to any person in relation to the principal’s affairs or business.

(2) Any gift or other consideration given or offered or agreed to be given to any parent, husband, wife, civil union partner, de facto partner, or child of any agent, or to his partner, clerk, or servant, or (at the agent’s request or suggestion) to any other person, shall be deemed for the purposes of this section to have been given or offered or agreed to be given to the agent.

Section 4 Acceptance of such gifts by agent an offence

(1) Every agent is guilty of an offence who corruptly accepts or obtains, or agrees or offers to accept or attempts to obtain, or solicits from any person, for himself or for any other person, any gift or other consideration as an inducement or reward for doing or forbearing to do, or for having done or forborne to do, any act in relation to the principal's affairs or business (whether such act is within the scope of the agent's authority or the course of his employment as agent or not), or for showing or having shown favour or disfavour to any person in relation to the principal's affairs or business.

(2) Every agent who diverts, obstructs, or interferes with the proper course of the affairs or business of his principal, or fails to use due diligence in the prosecution of such affairs or business, with intent to obtain for himself or for any other person any gift or other consideration from any person interested in such affairs or business, shall be deemed to have corruptly solicited a consideration within the meaning of this section.

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