15 March 2016

Guilty verdicts from MRP referral to the SFO

Paul Kenneth Rose and Jane Clare Rose have been found guilty in the Auckland High Court today of fraud against one of New Zealand’s largest power companies.

Crimes Act charges of obtaining by deception were laid by the Serious Fraud Office in August 2014 for alleged fraud against Mighty River Power Limited relating to procurement for the Company’s Southdown power station.

Paul Rose was found guilty of nine charges of obtaining by deception and not guilty of one charge of obtaining by deception. Jane Rose was found guilty of eight charges of obtaining by deception.

Paul Rose was employed as an Electrical Engineer at the Southdown power station. He set up companies in the name of Jane Rose (and that of a former partner) to conceal his interest in, and connection to, these companies. He then used these companies to invoice Mighty River Power, first on his own, and later with the assistance of Jane Rose. Mighty River Power was not aware of Paul Rose’s interest in these companies and he did not declare the conflict of interest. Payments of approximately $2.2 million were paid to the companies by Mighty River Power.

Paul Rose’s offending took place between March 2006 and December 2012 and Jane Rose was involved over a period of time between February 2010 and December 2012.

After an investigation undertaken by Mighty River Power in December 2012 the matter was referred to the SFO.

Director of the Serious Fraud Office, Julie Read said, “While Mr Rose took advantage of gaps in compliance with procurement procedures at Mighty River Power, internal checks and the observations of other staff led to the discovery of Mr Rose’s offending. It is important that such matters are reported to the SFO so that perpetrators of fraud can be brought to justice and so that people understand that this sort of conduct is not tolerated in New Zealand.”

The defendants will next appear in the Auckland High Court for sentencing on 28 April 2016.

ENDS

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