The Auckland District Court sent a former charitable trust boss and his business partner to serve their time in prison, while a third associate, a former Member of Parliament escaped with a milder sentence of community detention.
In its ruling issued on August 26, the court found the three men guilty of conspiracy to defraud and attempting to obstruct the course of justice.
Former Actives Charitable Trust Principal Officer and General Manager Robert Anthony Briggs (50) was sentenced to four years and ten months in prison on two proven charges of conspiring to commit an offence for personal financial gain and six charges of corruptly soliciting and accepting commissions under the Secret Commissions Act.
Fifty-nine-year-old Gerard Thomas Clifford, who had name suppression, was sentenced to four years imprisonment on two proven charges of conspiring to commit an offence for personal financial gain and for dishonestly obtaining funds from Actives in collusion with Mr Briggs.
Former MP Gilbert Colin Myles (65) received four months community detention and 250 hours of community work. He was found guilty of attempting to obstruct the course of justice during the course of the SFO investigation.
The Serious Fraud Office brought the charges against the three persons.
The Trust was established in June 2000 and became a society licensed by the Internal Affairs Department to operate gaming machines and distribute the proceeds for charitable and community purposes.
Robert Briggs was, at various times, the principal officer and general manager of Actives Charitable Trust. His company, Game Management Limited, also provided management services to the Trust.
During the trial, Mr Briggs admitted to corruptly accepting commissions totalling approximately $153,000 from suppliers in connection with gaming machines ordered on Actives’ behalf.
Mr Briggs and Mr Clifford were also found to have operated a dishonest scheme in which $1.2 million of financial grants for equipment was provided by Actives to tennis clubs.
Companies owned by Mr Clifford then supplied that equipment to the tennis clubs at over inflated prices, and the funding was then shared between Mr Briggs and Mr Clifford.
SFO Chief Executive Adam Feeley said officials involved with charitable organisations should demonstrate the highest ethical standards.
“Mr Briggs and Mr Clifford took advantage of their positions and in doing so, deprived the local community of valuable resources,” he said.