UPDATE: Swney sentencing delayed until June 24

UPDATE: 12:20pm

Alex Swney, the former boss of Auckland business organisation Heart of the City, will reappear for sentencing on June 24.

Swney was due to appear in the Auckland District Court today for sentencing after admitting and being convicted to more than $4 million in tax evasion and fraud.

But he has avoided prison, at least for today, after the sentencing judge Grant Fraser fell ill.

Judge David Harvey instead heard the matter in the Auckland District Court today and adjourned the sentencing to June 24, to be heard by Judge Grant Fraser.

Swney remains on bail.

EARLIER:

Last week, Swney pleaded guilty to a charge brought by the Serious Fraud Office (SFO) of dishonestly using documents.

He had already admitted in January to charges laid by the IRD covering $1.8 million in unpaid taxes.

The IRD also alleges Swney owes $1.4 million in penalties and interest.

Swney was released on bail but was due to appear in the Auckland District Court for sentencing on the SFO charge and four IRD charges.

The maximum prison term for the SFO charge is seven years.

A judge has previously indicated jail is a likely outcome.

Swney created fictitious invoices while at Heart of the City that resulted in payments of more than $2.5 million to accounts controlled by him.

SFO director Julie Read says the misappropriation increased the cost of the services provided by the organisation and reduced the benefits delivered by it.

“Fraud of this size by employees who are entrusted with the management and expenditure of substantial sums of money is very costly for both the businesses concerned and more broadly for the community as it harms the integrity of these organisations,” she says.

Swney had initially denied the IRD charges last year but changed his plea after switching lawyers to Murray Gibson.

Swney also faces civil proceedings by Heart of the City’s board, which undertook an independent investigation when the allegations surfaced.

Heart of the City is mostly funded by targeted business rates and its purpose is to promote business in the Auckland CBD.

In its most recently available annual report for 2011-2012, the organisation records receiving $4.47 million in revenue.

Earlier this year the association teamed up with Auckland Tourism Events and Economic Development (ATEED) to fund a domestic tourism campaign.

It had previously funded the Whitcoulls Santa each Christmas, but NBR Rich Listers the Mansons and SkyCity are now funding the statue for five years.

Mr Swney had been at the helm of the business association for more than a decade.

In 2007 he unsuccessfully ran for mayor of the then-Auckland City Council, losing to John Banks.