Man convicted in magazine advertising scam
A man who ran a magazine advertising scam has been caught out by a large-scale sting operation named Operation Edit.
A man who ran a magazine advertising scam has admitted his guilt and been convicted after being caught out by a large-scale sting operation named Operation Edit.
Anthony John Hendon pleaded guilty this morning in the High Court at Wellington to 24 charges of reproducing documents with intent to cause loss. He was convicted and will be sentenced on April 1. The crime carries a maximum 10-year prison sentence.
The 54-year-old copied advertisements from genuine publications and promised prospective advertisers he would print and distribute their advertisements.
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. The Serious Fraud Office said Mr Hendon also “grossly misrepresented” the number of magazines to be printed and circulated.
Mr Hendon netted more than $750,000 through the invoicing scam, which ran between February 2010 and October 2012 but had attempted to get more than $1 million, the SFO said.
He was charged in October 2012 following a joint enforcement agency operation led by the SFO. The investigation, involving seven different agencies and 67 staff, resulted in six arrests.
“The scale of coordination across the agencies in Operation Edit was the first of its kind in a fraud investigation and the thoroughness of the investigation has led to this guilty plea,” SFO director Julie Read says.
The SFO believes Mr Hendon led the scam. Two other defendants have already been convicted and were sentenced to home detention and community work.
Noelene Kay Banton and Johannes Hendrik Maria Middeldorp are also accused of being involved in the scam, with their trial to start February 18.
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Man convicted in magazine advertising scam
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