SPCS

SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

Michael Swann – convicted fraudster: Search for his assets – ‘labour intensive’

by Leave a Comment

Police have identified more than 50 assets connected to convicted fraudster Michael Swann, with more outstanding assets likely.

Last week, more than $250,000 in assets were recovered from Mr Swann and forfeited by the High Court, including a 1922 Rolls-Royce, $92,475.42 in trust accounts, and a dirt bike.

Those assets join the 48 assets subject to confiscation orders by the court.

To see a slideshow of Swann’s assets go to: http://www.odt.co.nz/news/galleries/283558/swann-collection [Read more…]

From jail to mansion for conman Michael Andrew Swann

by Leave a Comment

A FRAUDSTER who still owes millions of dollars will be freed from jail to live with a prominent Christchurch businessman in his Banks Peninsular mansion.

Michael Andrew Swann, 51, will be paroled to Alasdair Cassels’ Governors Bay property, valued at about $1.35 million.

The home has an indoor pool, harbour views and is surrounded by a vineyard.

Mr Cassels confirmed yesterday that Swann would be living with him and his family, but only for a short time.

He said he received a call for help from Swann, who needed a place to stay after the Parole Board ruled another proposed address was unsuitable.

Mr Cassels first met Swann many years ago, but did not consider him a close friend. “The guy’s served his time and he’s trying to get himself rehabilitated – trying to get himself back into the workforce. Why should he be cast on the rubbish heap?”

Swann will be employed  by a Christchurch company doing engineering and biotech work.

Swann’s release from Christchurch Men’s Prison comes after he has served less than half of his jail sentence. His release date is July 31.

Swann and his associate, Kerry Harford, were found guilty in 2008 of defrauding the then–Otago District Health Board of about $16.9m by invoicing the board for bogus computer-related services.

Swann, the health board IT manager at the time, was sentenced to nine-and-a-half years’ jail with a non-parole period of four and-a-half years. He was ordered to repay the Crown $9.5m.

A Ministry of Business, Innovation and Employment spokesperson said yesterday that only $3.2m had been recovered through the sale of seized assets, but the case “remains open”.

Swann has acknowledged it is unlikely he will ever be able to repay the sum in full.

Former health board chairman Richard Thomson, who was sacked by Health Minister Tony Ryall after Swann was sentenced, said he was angry the “sociopath” would be released at his first attempt at parole.

Mr Thomson, now a Southern District Health Board member and a Dunedin city councillor, said Swann still refused to co-operate with the district health board over outstanding legal matters.

His refusal to sign a document continued to cost it money.

“He’s a nasty piece of work,” Mr Thomson said.

Swann had hoped to live at his boss’ address, but the Parole Board was concerned at the potential for “collusion”.

Swann appeared before the Parole Board again last month.

A psychologist’s report assessed Swann as at low risk of reoffending and prison staff supported him in letters to the board.

As part of his release conditions, he is not to be involved in the oversight of any business, or handle another person’s money or invoices relating to any business or commercial enterprise.

Source:

The Dominion Post. Tuseday, July 16, 2013, p. A2

Story by Blair Ensor

Fairfax NZ

Further reading:

1. SPCS Report: 11/11/2010

https://www.spcs.org.nz/2010/michael-swann-checketts-mckay-fraud-and-otago-dhbs-missing-6-million-report/

2. Convicted fraudster Swann freed

by Rosie Manins. 16 July 2013

http://www.odt.co.nz/news/dunedin/264949/convicted-fraudster-swann-freed

Quote:

Former ODHB chairman Richard Thomson said Swann’s release was not a surprise, but it was disappointing. He said Swann was not remorseful and the only lesson he had learned was not to get caught.

”My understanding is he will be going to live in a property that most of us can only dream about. And he will be doing so despite continuing to cause the population of Otago and Southland lost health opportunities as a result of his refusal during his prison term to engage with the board.”

Mr Thomson was board chairman for part of the time when Swann’s fraud occurred and consequently was sacked from that position in 2009 by Health Minister Tony Ryall. He remains a member of the Southern District Health Board.

Mr Thomson said Swann had caused the board ongoing legal costs but could have prevented the extra expense ”with a signature and at no cost to himself”.

”I believe he’s done that deliberately, and I find it extraordinary the parole board has either not sought to establish whether he has co-operated in any way, or that the parole board has not considered his failure to do so indicative of his lack of remorse.

”The primary issue is whether this man co-operated to put right what he did that was wrong and I know, but am not at liberty to detail, that he has failed to do so.

”That to me is indicative of both his personality and of his complete absence of remorse,” Mr Thomson said.

Michael Swann’s parole hearing delayed due to threats against Parole Board

by Leave a Comment

Convicted fraudster Michael Swann, who defrauded the Otago District Health Board of $16,902,000 over six years while he worked there as an IT specialist, is up for parole after only serving four years of a nine-and-a-half year prison sentence imposed March 2009. He spent almost $11.6 million of the stolen money on boats, flash cars and properties – buying some with suitcases of cash.

In an “extraordinary turn of events” his parole hearing has had to be delayed by the Board because of a threat it received from Swann’s unnamed main parole sponsor, a threat issued in an “extraordinary and inappropriate” letter, according to the Boad.

Board convenor Judge Michael Crosbie said the supporter, who was present for Swann’s parole hearing last Tuesday [14 May], had written to the board since the hearing.

The letter contained “a threat to take and fund judicial review proceedings if Mr Swann does not receive an outcome favourable to him”.

Judge Crosbie said it would be wrong to ignore the letter.

“It is both extraordinary and inappropriate for a prisoner or supporter to write a letter … pending a decision,” he said.

Judge Crosbie said Swann had perpetrated a fraud involving “a serious and cynical breach of trust”.

However, the supporter’s letter had objected to the board conducting any analysis of Swann’s risk.

For full story go to:

Parole Delayed for Swann. 8.45 PM, Monday, May 20, 2013

By Matthew Backhouse

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10884944

Threatening letter delays parole hearing

Story by Wilma McCorkindale.

http://www.stuff.co.nz/national/crime/8693980/Threatening-letter-delays-parole-hearing

Fairfax NZ News

White collar crime: Heavy sentences imposed on offenders convicted of premeditated fraud

by Leave a Comment

The offending of Jacqui Bradley, the former financial adviser jailed today for seven years and five months on fraud charges, was premeditated and left many elderly investors financially and emotionally ruined, the Auckland District Court heard.

[This fraud case has some similarities to the 2009 conviction of Michael Swann who was given a 9.5 year jail sentence relating to a huge fraud against the Otago District Health Board. See https://www.spcs.org.nz/tag/michael-swann/ ].

A jury last month found Bradley, aged 61, guilty of 75 charges of fraud after a five-week trial. Bradley ran the failed finance company B’On Financial Services with her late husband Mike until it collapsed in December 2009 owing 28 investors $15.5 million.

Judge Christopher Field, in sentencing today, said the extent of loss, harm and damage was “very significant indeed”…..

It’s the third prosecution involving an affinity fraud by financial advisers that the SFO has completed in the past three months with offending across all three cases totalling almost $21m.

In other recent white collar crime cases those found guilty received a range of sentences in line with that handed out to Jacqui Bradley today.

Former Capital + Merchant directors Wayne Douglas and Neal Nicholls were give 7 and a half years jail in July on various fraud counts involving about $28m of transactions after Justice Edwin Wylie said they were motivate by greed and self-interest. DataSouth director Gavin Bennett got 8 years jail in May for defrauding South Canterbury Finance while Bridgecorp director Rod Petricevic got almost 7 years in April for misleading investors and spending company money on a luxury yacht.

Former ASB bank employee Stephen Velsalko got six years jail time in a 2010 case involving $17m stolen from his employer while in 2009 Michael Swann was given 9.5 years relating to a huge fraud against the Otago District Health Board.

For more see: Bradley offending premeditated. Story by Nick Kraus

http://www.stuff.co.nz/business/money/7837957/Bradley-offending-premeditated

Further reading:

See: https://www.spcs.org.nz/2010/michael-swann-checketts-mckay-fraud-and-otago-dhbs-missing-6-million-report/

https://www.spcs.org.nz/2010/michael-swann-computer-south-ltd-and-checketts-mckay-law/

Computer South Ltd finally Struck Off – Funnel for money laundering and fraud

by 1 Comment

Finally, on 24 December 2010, the Registrar of Companies struck off Computer South Ltd (which had its registered office for over 13 years with Checketts McKay Law, Wanaka), from the Companies Office list of registered companies. ‘Directed’ by plumber Peter Bruce Ibbotson since it was incorporated on 20 March 1997, with Iain Grant Fyfe, a partner in Checketts McKay, as one of its three original shareholders and its solicitor; the company continued to ‘trade’ up to as recently as 20 April 2009 when its Annual Return was filed on line by Fiona Browne, agent for Checketts McKay.

 A Serious Fraud Investigation commenced in 2006 into the activities of the real “director” of Computer South Ltd, Michael Andrew Swann, found that it had no assets, no employees and filed no tax returns. It was used by convicted fraudster Swann, a banned company director and bankrupt, as his de facto bank account for laundering millions of dollars he gained by fraud from the tax-payer funded Otago District Health Board, while he was employed there as information technology manager from 2000-2006.

An online record dated 22 September 2006, made by Kathleen Elizabeth Bennett, agent for Checketts McKay, proves that 50% of Computer South shares, personally held by Iain Grant Fyfe, were transferred to Ibbotson,  just days before the Otago DHB suspended their employee Michael Andrew Swann and launched their investigation into his financial activities in early October 2006.  The Serious Fraud Office launched its own inquiry shortly afterwards.

Working closely with solicitor Iain Grant Fyfe, Swann squirrelled away millions of dollars over six years into Central Otago properties purchased by trusts set up by Checketts McKay in the names of people – presumably known to and nominated by Swann.

Convicted fraudster Michael Andrew Swann, who is currently serving a lengthy jail term for fraud, together with his convicted accomplice Kerry Gray Harford, defrauded the Otago District Health Board of $16.9 Million over six years (2000-2006).

Swann, ran Computer South Ltd as his personal de facto bank account for the laundering of millions of dollars of ‘dirty money’ obtained by fraud from the DHB, despite the fact he held no office in the company and held no shares. As a convicted bankrupt Swann was unable to hold shares in or direct any company.

As a banned director it was unlawful for him to play any significant role in the management and/or financial affairs of the company.  The Otago DHB suspended suspended Michael Andrew Swann in early October 2006 for “gross mismanagement of DHB’s IT procurements including delegation of authority and purchasing policies” then fired him.

For further background reading see:

Swann’s Rolls-Royce lifestyle – the evidence. By Stu Oldham. Fri, 10 Dec 2010

http://www.odt.co.nz/news/dunedin/140143/swanns-rolls-royce-lifestyle-evidence
Police seek information on Swann assets. Sat, 25 Sep 2010.

http://www.odt.co.nz/news/dunedin/128160/police-seek-information-swann-assets