BUSINESSDESK: The directors of failed natural gas retailer E-Gas under-reported gas by some 950,000 gigajoules of consumption to commit frauds worth $17 million in total, the Serious Fraud Office alleges in charges filed in the Wellington District Court.
Wellington-based E-Gas went into liquidation without warning in October 2010, leaving other gas retailers to purchase its approximately 7000 customers.
The SFO alleges former managing director Ronald Peter Rosenberg and former general manager Sydney Lio Hunt under-reported gas consumption to the value of $8.74 million, and avoided penalties of about $8.67 million.
They face a total of 82 charges – 41 charges each – under the Crimes Act relating to the dishonest use of documents between April 2005 and October 2008. The charges carry a maximum sentence of seven years in prison.
At the time of its failure, liquidators at chartered accountants BDO said the company had faced "increasingly difficult trading conditions together with other non-recoverable increasing operational costs".
Messrs Rosenberg and Hunt will next appear in the Wellington District Court on September 27.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Nevil Gibson discusses his latest Editor's Insight on films
- The NBR crew throw around some of the week's top stories
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’