Investment-wizard fraudster cries foul

WAYNE PATTERSON: At his peak was stealing $56,000 a week.

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He stole more than $3 million, but New Zealand's worst benefit fraudster is now accusing the authorities of "legalised theft" after his solid investments earned the Government more than he ripped off.

Wayne Patterson faked 123 identities to swindle the Government out of $3.4m in benefit payments over three years, before being caught in 2006. At its peak, his criminal behaviour was netting him $28,000 a week.

Patterson sent a letter to The Dominion Post from Whanganui Prison, where he is serving an eight-year sentence, expressing his displeasure that he had been forced to pay the Government more than his original theft.

He claims the Social Development Ministry has now recovered $5.5m, a profit of $2.1m, and said he had been ordered to pay a total of $8.6m, "even though I only took $3.4m".

He writes: "In my opinion the NZ Government through its various departments has proven it is highly efficient at legalized theft! I have never heard of a case were [sic] a person is ordered to pay back nearly three times the amount they took."

But Social Development Ministry chief executive Peter Hughes said Patterson's expectation that he should profit from his crimes in any way was "as appalling as it is outrageous", and Patterson was "deluded" if he thought he had any claim to the funds.

All Patterson's assets and investments were seized under the Proceeds of Crimes Act. This included stacks of gold bars and more than $800,000 in cash secreted around his Auckland home.

It was initially thought the Government would stand to gain $467,000 from the profit on clever overseas investments.

By 2008, this had more than doubled to $1,001,793 after lucrative returns on money in overseas accounts, much of which appeared to be in Apple computer stocks.

The Social Development Ministry said it had now claimed more than $3.4m and was chasing another $1.5m tied up in Austria. More detailed figures could not be provided.

Patterson also claimed his human rights had been violated after secret Austrian court hearings, and accused the ministry of putting out propaganda.

He went on to defend Jeanette Ford, who was jailed on March 25 for defrauding the taxpayer of $231,000 over more than a decade.

Although she was labelled the "face of greed" by Social Development Ministry fraud head Graeme Carruthers, Patterson argued that the 13-year theft "amounts to about $300 per week, hardly front-page news".

Mr Hughes said the ministry was working with Crown Law and the Foreign Affairs and Trade Ministry to pursue recovery of the Austrian funds.

These proceedings were occurring under Austrian law.

"I fail to understand how Patterson feels his human rights are being violated through this recovery process. Instead of whining from his prison cell, he might wish to give a little more thought to the rights of the taxpayers he stole from," Mr Hughes said.

After Patterson was jailed in 2007, Mr Hughes said Patterson was a "very skilled man" and, if he could trust him, he would hire him.

Now he says it is obvious this would be impossible. "You can't, and I won't."

- © Fairfax NZ News