News Video | Policy | GPs | Hospitals | Medical | Mental Health | Welfare | Search

 

Health Benefits Satisfied With Sentences

Health Benefits Satisfied With Sentences Handed Down In Fraud Case

Sentences were handed down today in the Wellington District Court to the principal and three company representatives of New Zealand Diagnostics Ltd, a Waikanae based medical supply company.

Health Benefits, a business unit of the Ministry of Health, laid criminal charges against the principal, Cavan Haines, his son Quentin Haines and two other company representatives, Joy Jones and Franciscus Buissink of New Zealand Diagnostics Ltd. The charges were for conspiracy to defraud.

The fraud centred around New Zealand Diagnostics making false claims for the supply of certain subsidised medical equipment to health professionals. The period over which this fraud occurred was between 1994 and 1998. The amount defrauded was $5.5 million.

On 3 April the jury in the case delivered a guilty verdict on all counts against the four defendants. The sentences handed down by the court today were the last stage of the criminal prosecution for this major fraud uncovered by Health Benefits. The sentences were for Cavan Haines four and half years imprisonment; Quentin Haines and Joy Jones each received eighteen months imprisonment, suspended for two years plus nine months periodic detention; and Franciscus Buissink received eighteen months imprisonment suspended for two years plus a $10,000 fine.

"Health Benefits has not only stopped this fraud but also brought a successful prosecution against those who carried out this crime. The scale of this crime seriously disadvantaged the general public by decreasing funding for services, medication and equipment that could otherwise have been provided with the money that was fraudulently obtained by New Zealand Diagnostics"

Alastair McIlwrick said this outcome and the sentences imposed, serves notice to those organisations or individuals that seek to defraud, that they will not succeed.

"The sentences delivered by the Court should provide an effective deterrent to those who would consider dishonest practices in lodging claims with Health Benefits. It will also reassure the overwhelming majority of health professionals who submit correct and honest claims that their integrity and that of the system of claims and payments has and will continue to be preserved", said Alastair McIlwrick.

Health Benefits is currently pursuing a range of options to recover the money defrauded. This is consistent with Health Benefits policy of recovering public funds when they have been inappropriately claimed and maintaining a climate of accountability within the claimant community.

ENDS

Note: Health Benefits is the agency responsible for receiving, assessing and making payment on claims to health professionals and medical supply companies for a range of government subsidised services, medications and equipment.

For further information

Contact

Rob Eaddy Phone (04) 496 2199 Cell (025) 227 4070

Robert Eaddy DHB Establishment Communications Manager Communications Corporate & Information Directorate Ministry of Health DDI: 04 496 2199

mailto:robert_eaddy@moh.govt.nz

© Scoop Media

 
 
 
Culture Headlines | Health Headlines | Education Headlines

 


Howard Davis: Off The Hidden Path - Five Los Angeles Treasures (Part I)

The immense cultural diversity of LA provides an extraordinary variety of lifestyles and arhcitecture. Here are five 'hidden' destinations where the discerning traveller can appreciate and enjoy this unique and constantly evolving metropolis. More>>


City Of 100 Lovers: Multi-Million Dollar NZ Theatre Production To Launch

Produced in New Zealand with an $8 million budget, this musical comedy has been created with both locals and tourists in mind. More>>


Howard Davis Review: The Outsider Art of Tony Fomison

Among such gifted contemporaries as Bill Hammond, Tony de la Tour, and printmaker Jason Grieg, Fomison distinguished himself as highly idiosyncratic, and could have become wealthy, had not his demons prevented him from investing his income wisely. In his near monochrome oil painting on black hessian, he staked out a territory of morbid originality. More>>

Scoop Review Of Books: Immortal Love

The series has a wild-west tone with a steampunk vibe, so if you’re a fan of Joss Whedon’s Firefly or Joe Abercrombie’s Shattered Sea, then chances are you’ll enjoy this book. More>>

Howard Davis Review: The Trappings of Success - McQueen

This troubling documentary about the extraordinary life and untimely death of British fashion designer Alexander McQueen is a cautionary tale of an extremely gifted, but self-destructive soul caught up in a business that chews up and spits out its creative talent. More>>

Indycars: Dixon Wins Fifth US Championship

The New Zealand motor racing driver Scott Dixon has won the US Indycar championship for the fifth time, finishing second in the final race of the season in Sonoma, California. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • CULTURE
  • HEALTH
  • EDUCATION
 
 
  • Wellington
  • Christchurch
  • Auckland