Fraud Will Not Be Tolerated

Fraud Will Not Be Tolerated - Former Health Services Manager Sentenced

Rodney Mason, the former manager of a Christchurch Alcohol and Drug Rehabilitation service, the Vincentian Recovery Centre Trust was today sentenced in the Christchurch District Court to three years, four months imprisonment and ordered to pay reparation of $48,000.

He was charged with dishonestly using documents (false invoices) to claim health subsidies for a rehabilitation programme that never existed and to claim for clients who had stopped using the services. He was also charged with forging a signature to cash Vincentian Trust cheques. In total 465 charges were laid, these were subsequently replaced with three representative counts covering the offending, which took place between 2005 and 2009.

The amount defrauded amounts to $654,756. The provider is no longer in business and the former premises have been sold which resulted in $170,000 being repaid to the Canterbury District Health Board.

Michael Moore, National Risk Manager of the Audit & Compliance Unit of the Ministry of Health, said that the majority of health providers are honest and ethical in their activities and provide good value for money. "This case should serve as a reminder that fraud will not be tolerated. Both the Audit & Compliance Unit and DHBs have monitoring and audit processes in place. Where we suspect the misuse of funds, we will investigate and prosecute to ensure that the offenders are brought to justice.

"Fraud diminishes the limited resources for health services and disadvantages those who have the most need for healthcare. We rely on the honesty of health professionals when claims for payment are submitted. It is very disappointing when someone breaches that trust and defrauds the system. If people choose to make false claims and forge documents in order to steal money earmarked for health services, they can expect to be caught and punished accordingly," Michael Moore said.

"One of the features of our monitoring system is a Fraud Hot Line for anyone who suspects the misuse of health funding and we welcome phone calls on 0800 424 888.

ENDS

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