28 August 2019

A former trustee of a Far North Māori land trust has been sentenced to five years and two months’ imprisonment on charges brought by the Serious Fraud Office.

Stephen Henare (62) was sentenced today at the High Court in Auckland on five counts of ‘Theft by person in special relationship’ and one count of ‘Attempting to pervert the course of justice’. Mr Henare used his position as a trustee of Parengarenga 3G Trust (P3G Trust) to strip the entity of approximately $1.08 million. The funds were primarily intended for the management of a 512-hectare block of land that was used by the trust for a commercial forestry venture.

During the time of his offending, Mr Henare lied to the Māori Land Court about the financial position of the trust. An application to replace him as a trustee was subsequently dismissed. Mr Henare went on use his position to steal the remaining $400,000 of the P3G Trust’s cash.

The Director of the SFO, Julie Read, said, “The sentence imposed today reflects the seriousness of offending which has had a devastating financial, social and emotional impact on the 400 current and future beneficial owners of P3G Trust. The current trustees are now faced with challenges in the continued maintenance of the forest and the potential future loss of a substantial portion of the remaining assets of the trust.”

Mr Henare was assisted in much of his offending by his sister, Margaret Dixon, who was also a trustee of P3G Trust. Ms Dixon pleaded guilty last year to defrauding the trust. She was sentenced to 12 months’ home detention and ordered to pay $5,000 in reparation.

Background information

Stephen James Henare (62), Margaret Janene Dixon as well as five other people were appointed as trustees of the Parengarenga 3G (P3G) Trust in June 2012, in place of the Māori Trustee.

Nearly $1.1 million was transferred from the Māori Trustee to P3G Trust bank accounts in August of that same year. The funds were intended primarily for the management of the land and the forest for the benefit of the owners. A further $54,480 was also obtained by the trust from the sale of carbon credits.

P3G Trust is a 512-hectare block of forested Māori land in Tai Tokerau District in the Far North. The land and its assets are managed by the P3G Trust. There are hundreds of beneficial owners of the land.

Mr Henare and Ms Dixon have been removed as trustees of P3G Trust.

Crimes Act offences

Section 220 Theft by person in special relationship

(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—

(a) to account to any other person for the property, or for any proceeds arising from the property; or

(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.

(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.

(3) This section applies whether or not the person was required to deliver over the identical property received or in the person’s possession or control.

(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.

117 Corrupting juries and witnesses

Every one is liable to imprisonment for a term not exceeding 7 years who—

(a) dissuades or attempts to dissuade a person, by threats, bribes, or other corrupt means, from giving evidence in any cause or matter (whether civil or criminal, and whether tried or to be tried in New Zealand or in an overseas jurisdiction); or

(b) influences or attempts to influence, by threats or bribes or other corrupt means, a member of a jury in his or her conduct as such (whether in a cause or matter tried or to be tried in New Zealand or in an overseas jurisdiction, and whether the member has been sworn as a member of a particular jury or not); or

(c) accepts any bribe or other corrupt consideration to abstain from giving evidence (whether in a cause or matter tried or to be tried in New Zealand or in an overseas jurisdiction); or

(d) accepts any bribe or other corrupt consideration on account of his or her conduct as a member of a jury (whether in a cause or matter tried or to be tried in New Zealand or in an overseas jurisdiction, and whether the member has been sworn as a member of a particular jury or not); or

(e) wilfully attempts in any other way to obstruct, prevent, pervert, or defeat the course of justice in New Zealand or the course of justice in an overseas jurisdiction.

ends

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