Fraud against MRP receives jail time and home detention

25 May 2016

Fraud against Mighty River Power receives jail time and home detention

A pair who committed fraud against one of New Zealand’s largest power companies have been sentenced in the Auckland High Court today.

Paul Kenneth Rose and Jane Clare Rose were found guilty in March this year of Crimes Act charges of ‘Obtaining by deception’ following a Serious Fraud Office prosecution. The victim, Mighty River Power Limited, had undertaken an internal investigation in November 2012 before the matter was referred to the SFO.

Paul Rose was sentenced to three years and two months’ imprisonment and Jane Rose was sentenced to nine months of home detention.

The multi-million dollar fraud related to procurement for the Company’s Southdown power station.

Paul Rose was employed as an Electrical Engineer at the Southdown power station. He organised for companies to be set up 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.

Director of the Serious Fraud Office, Julie Read said, “We are pleased that our investigation and prosecution of these attempts to deliberately deceive an employer have been punished. Mighty River Power is a significant contributor to the New Zealand economy and the SFO places a great deal of importance on our contribution to maintaining the reputation of New Zealand as a safe place to do business.”

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.

Background to investigation
Mighty River Power Limited is an electricity retailer and generator, which operates the Waikato Hydro System, five geothermal power stations in the Central North Island and a gas and steam-fired station at Southdown in Auckland.

Paul Kenneth Rose was employed at the Southdown (Penrose) power station in Auckland from November 2001 to December 2012, initially as an Instrumentation and Electrical Technician and subsequently as an Electrical Engineer. Part of Paul Rose’s role was to identify what equipment was required to be ordered, or services to be provided, for the operation of the plant.

Crimes Act Offences
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.

ENDS

© Scoop Media