Community detention for wage subsidy fraud

b A man who dishonestly obtained almost $26,000 in COVID19 Wage Subsidy money has been sentenced to community detention.

Kiel Alfred Joshua Newman appeared for sentencing in the Waitakere District Court on September 3 having earlier admitted five charges of dishonestly taking or using a document.

Between 15 April and 16 July 2020, Newman submitted eight wage subsidy applications to MSD. Four of these, totalling $25,775.20, were paid into his bank account.

Subsequent checks with Inland Revenue confirmed Newman was not self-employed at the time the applications were made, nor was he a registered employer.

Newman made some applications in the name of other individuals, using their contact and IR details or those of the individuals’ businesses. Some applications were also made using his own name and personal IR number. He has no links to, or involvement in, any of the businesses that he noted in the applications.

His personal bank accounts were nominated on all applications, and none of the wage subsidy funds paid went to the businesses or individuals whose details were used on the applications.

He was not entitled to any of the wage subsidy funds that he applied for or received.

In sentencing Newman, Judge Terence Singh called the offending moderately serious which he said undermined an extraordinary fund that was for emergency relief.

Judge Singh sentenced Newman to five months’ community detention, and required him to pay full reparation of the $25,775.20.

A total of 28 people have been sentenced in wage subsidy cases, another 47 people are still before the courts, and more than $826 million* has been repaid. For more information on MSD’s programme of work on wage subsidy fraud and integrity, please see here.

*figures as at 23 August