Former E-Gas managers found guilty of fraud worth up to $17M
April 4 (BusinessDesk) – Two former managers of gas retailer E-Gas were found guilty of fraud charges involving as much as $17 million related to under-reporting of gas usage.
E-Gas former managing director Ronald Rosenberg and former general manager Sydney Lio Hunt were found guilty of the 82 Serious Fraud Office charges by Judge Bruce Davidson in the Wellington District Court. They have been remanded on bail for sentencing on May 29 and face a maximum penalty of seven years' prison. The quantum of the fraud is subject to another hearing.
Serious Fraud Office investigators found that between April 2005 and October 2008 the managers deliberately under-reported the quantity of gas supplied to customers, avoiding about $8.74 million in charges and $8.67 million in penalties.
"Serious financial crime places a high cost on the New Zealand economy and affects all consumers," SFO director Julie Read said in a statement. "The SFO will continue to focus resources on these high impact areas and we encourage the business community to be aware of any areas of risk in their own industries."