Two people have been found guilty for their part in a magazine advertising scam which attempted to obtain more than $1 million from about 1000 victims but no convictions have been entered yet.
Noelene Kay Banton, 61, and Johannes Hendrik Maria Middeldorp, 63, appeared in the High Court at Wellington today for delivery of an oral judgment following a seven week trial which began in February.
Both defendants faced charges of dishonestly reproducing documents or dishonestly using documents with intent to deceive, which they both denied.
Justice Jillian Mallon, however, found the pair guilty of seven of these charges, although she acquitted them of two.
They will appear for sentencing on June 12, at which point convictions will be entered.
Banton and Middeldorp were two of six arrests following a joint enforcement agency operation established in May, 2012, led by the Serious Fraud Office.
The investigation, involving seven different agencies and 67 staff, was labelled Operation Edit.
The SFO says the scam involved grossly misrepresenting the number of magazines advertisements from prospective clients would be printed and distributed in.
To encourage the advertisers to buy in, the magazines were titled in a way that suggested support of worthwhile causes, such as road safety, parenting or family support.
Overall, it attempted to obtain more than $1 million from about 1000 victims.
In February, Anthony John Hendon, who the SFO says led the scam, pled guilty to 24 charges of reproducing documents with intent to cause loss.
The crime carries a maximum 10-year prison sentence, for which he awaits sentencing.
Two other defendants were sentenced to home detention and community work respectively after pleading guilty.
Hamish McNicol
Thu, 07 May 2015