Woman jailed for $1.2m fraud

Titahi Bay woman Susan Hagai was made redundant from her long-term job with the Wellington Hibernian Catholic Benefit Society before it was discovered she had defrauded the organisation of more than $1.2 million over about six years.

The 45-year-old went on to a new part-time position with Hoff Holdings and started siphoning money there to transfer to her own bank accounts.

The entertainment group runs bars and has former All Black Christian Cullen as a director and shareholder.

Hagai wept as she was led from the dock in Wellington District Court today to serve a prison term of four years and two months.

Sentencing judge Susan Thomas said the accused had caused significant harm to a lot of people and the offending was sustained, premeditated and "considerable'' in its magnitude and sophistication.

No reparation was possible because there were no assets to be sold.

Judge Thomas summarised about 30 victim impact statements before her as having recurring themes of devastation, stress, loss of life savings and retirement funds.

Hagai last month pleaded guilty to one charge of obtaining $1,242,750 by deception from the Hibernian society, a 142-year-old non-profit organisation, and its credit union between April 2004 and last December.

She also admitted four charges of causing a loss to Hoff Holdings totalling $15,089.

The court heard Hagai had been made redundant from the Hibernian society when her financial duties were contracted out. It was only later that an audit discovered something amiss, and the Serious Fraud Office was called in to investigate.

Lawyer for the Crown, Geraldine Kelly, said the accused was "very forthcoming'' when eventually confronted and told police she had taken $1.4m.

It was likely the offending had gone on longer than the records could confirm.

Submitting it was a case of greed, Ms Kelly said there were, however, no significant assets bought and no ability to repay. The money had gone on "lifestyle'' and seeking reparation was "just a wasted exercise.''

Within weeks of leaving the Hibernian Society, Hagai offended again in her new job with Hoff Holdings, taking sums of $9375, $3000, $2083 and $631 over six weeks.

The accused's lawyer Christopher Stevenson read a letter of apology on her behalf. In it, Hagai acknowledged her wrongdoing and expressed regret. She wrote that she was deeply remorseful and added: "I hate myself for what I have done.''

Mr Stevenson said his client was "at a loss to explain why this has happened.''

He had questioned her about a possible gambling issue and said there had been one "to some extent'' in the background.

 Standing in the dock throughout the sentencing process, Hagai kept her back resolutely to the crowded public gallery, where a number of her mostly-elderly victims watched and listened in silence. Occasionally she covered her face with her hands and wiped her eyes.

The court was told civil action was likely against auditors and accountants and Hagai had been assisting in the hope that some funds could be recovered.

 

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