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IT Contractors Sentenced In $4.1m SFO Case - New Zealand’s Largest Private Sector Corruption Case

Two IT contractors for Spark New Zealand Ltd were today sentenced to three years’ imprisonment in the Auckland High Court for their roles in a Serious Fraud Office (SFO) bribery and corruption case involving more than $4 million in kickbacks.

In April 2023, the SFO filed charges against the IT contractors, both of whom are Australian citizens.

Sean Bryan pleaded guilty in September 2024 to two representative charges of giving gifts to an agent. Mark Lester pleaded guilty in October 2024 to two representative charges of accepting gifts by an agent. They both had interim name suppression until now.

SFO Director Karen Chang says, “This is New Zealand’s largest ever private sector corruption case involving a publicly listed company providing crucial services to New Zealanders. It sends a clear warning about the real risks corruption poses. These risks include, harming the integrity of our business environment, reducing competition and lowering investor confidence.”

“While this particular case does not involve foreign bribery, it highlights the behaviours the SFO’s latest campaign is targeting and reinforces why we must protect New Zealand’s reputation as a safe, trusted place to do business.”

Mr Lester was contracted in 2013 to advise on, manage, and oversee testing associated with a major upgrade to the customer services IT platform of Spark, New Zealand’s largest telecommunications and digital services provider. Over time, Mr Lester was given more responsibility and promoted into a senior technology role.

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Mr Lester recommended using Mr Bryan’s company, Victory IT Ltd, to assist with testing upgrades to the IT platform. Mr Lester and Mr Bryan knew each other outside of their work, but the relationship was never disclosed. Based on Mr Lester’s ongoing recommendations, Victory IT Ltd continued to receive contracts and was paid approximately $20.7m between March 2014 and June 2017.

From June 2014 to May 2017 Mr Bryan made 32 payments totalling approximately $4.1m from his company to Mr Lester. The individual payments ranged in value from $10,500 to $379,500. There was no commercial basis for these payments. The payments were made in return for Mr Lester promoting Mr Bryan’s interests. Spark has pursued a civil case against Mr Lester and Mr Bryan to have the money repaid.

The SFO would like to acknowledge and thank Spark for their role in helping to bring the offending to light and their assistance throughout the investigation and prosecution.

Ms Chang says, “We rely on people and corporates coming forward and speaking up when they see wrongdoing, it’s a crucial part of how we uncover and address serious fraud and corruption in New Zealand. Our message is simple, if you see something report it.”

More information

· Serious Fraud Office campaign to tackle foreign bribery (15 May, 2025)

· Second IT contractor pleads guilty to receiving $4.1 million in kickbacks (31 October, 2024)

· IT contractor pleads guilty to paying $4.1 million in kickbacks (10 September, 2024)

About the Serious Fraud Office

The SFO is responsible for investigating and prosecuting serious or complex fraud, including bribery, and corruption in New Zealand. With a focus on maintaining integrity and trust in the financial system, the SFO has developed strategic areas of focus to ensure it has the greatest impact with the cases it takes in. SFO Strategic Areas of Focus

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