Director pleads guilty to five fraud charges involving $40 million
Steven John Roberts of The Hub Business Services took money using a scam technique known as 'Kiting' which cost BNZ $780,282.
Steven John Roberts, a director of The Hub Business Services, has pleaded guilty to five fraud charges brought in the Wellington District Court by the Serious Fraud Office.
The SFO said Roberts took advantage of a direct debit facility provided by the Bank of New Zealand, to dishonestly draw funds from five accounts and skimmed a portion of those funds for the benefit of The Hub by way of a scam commonly known as 'kiting'.
The Hub’s core business involved the “re-selling” of essential business services, such as telecommunication services, to small businesses at a cheaper rate than could be negotiated by the small business itself.
Over 10 months, Roberts dishonestly obtained $39,638,815.34. However, the direct debits for most of the amount taken each day were dishonoured and reversed within 24 hours.
"Subsequent dishonest transfers of a greater value were then made to cover the default of the original direct debits," The SFO said.
The loss ultimately suffered by BNZ was $780,288.42.
Roberts was remanded on bail for sentencing on 24 June 2011.
SFO chief executive Adam Feeley said the case illustrated the endless varieties of fraud that businesses faced on a daily basis.
NBR staff
Tue, 24 May 2011
Tue, 24 May 2011
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Director pleads guilty to five fraud charges involving $40 million
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