SPCS

SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

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

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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

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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

Computer South Ltd – Removal Notice Marks $16.9 Million dollar Fraud Fiasco

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Convicted fraudster Michael Andrew Swann, who together with his convicted accomplice Kerry Gray Harford, defrauded the Otago District Health Board of $16.9 Million over six years (2000-2006), ran Computer South Ltd as his personal de facto bank account for the laundering of 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 he was unable to hold shares in or direct any company).

Mr Swann’s close friend Peter Bruce Bruce Ibbotson, a plumber of Warrington, was put in place as director when the company was incorporated in 1997. In the Dunedin High Court where Swann faced charges for fraud, Ibbotson admitted that he had had almost no involvement (2000-2006) in any management of governance aspect of Computer South Ltd, a company which the Serious Fraud Office reported owned no assets, employed no staff, filed no tax returns, and was controlled by Swann rather than listed “director” Peter Ibbotson.

 A Notice of intention to remove Computer South Ltd from the Register of Companies under section 318(1)(b) of the Companies Act 1993, was issued by Mr Neville Harris, the Registrar, on 25 November 2010. [Read more…]

Computer South Ltd – A Dirty Money Depository – faces removal by Registrar

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Computer South Ltd is well overdue in its obligation to file its 2010 Annual Return that was due in April 2010. The Companies Office website (www.companies.govt.nz) carries a warning to the company stating:

“This company is now overdue in its obligation to file an annual return. If the annual return is not filed immediately the Registrar will initiate action to remove the company from the register.”

The Companies Office website document records show that it is directed by a Mr Peter Bruce Ibbotson, a plumber and long-term friend of convicted fraudster Michael Andrew Swann, who was appointed in 1997. All the Annual Returns for the company from 2003 to 2009 were filed on line by female employees of Checketts McKay (Wanaka). The 2001 and 2002 returns were filed by “Solicitors, Checketts McKay (Wanaka)”. One of its principals Iain Grant Fyfe held 33% of the company’s shares from March 1997 to 14 September 2006 and then 50% until 22 September 2006 when they were all transferred to Ibbotson.

The bank account of Computer South Ltd was where much of the $15.2 million Michael Swann defrauded from the Otago District Health Board, was deposited from 2000 to 2006. [Read more…]

Michael Swann, Computer South Ltd and Checketts McKay Law

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On 11 February 2010 Michael Andrew Swann was sentenced to 20 months jail for accepting $755,154 in bribes from long-term friend and business associate Robin Sew Hoy: the sentence to be served concurrently with his present jail sentence of nine and a half years for his part in defrauding the Otago District Health Board (ODHB) of $16.9 million.

Swann had pleaded guily to corruption (accepting bribes) in November 2009 and on 17 December 2009 he was convicted in a jury trial in the Dunedin High Court of a single charge laid against him under the Secret Commissions Act relating to 85 secret “kick-back” (inducement) payments he received from Sew Hoy. [Read more…]