Four years for fraud

A former chemical company executive – and ex-boss of a Waikato Christian camp – has been jailed on fraud charges.

Selwyn Love was sentenced to four years' prison in January for defrauding chemical and pharmaceutical company Merck NZ Ltd of more than $500,000 over six years.

Love was an employee of Merck, whose New Zealand office is in Palmerston North, for more than 30 years and was managing director from 1994.

He was also Matamata-based Totara Springs Christian Centre's chief executive for nearly three years, up until he was convicted in the Hamilton District Court in November last year.

However, Love's offending was not related to Totara Springs. Love's wife, Lee, who is administration manager at Totara, declined to comment.

Australian-based Merck NZ Ltd managing director Peter Sommers declined to comment as he did not want to "aggravate an already stressful time" for Love's family.

Love was sentenced on January 29 on eight counts relating to using a document for inflating his salary and bonuses between 2000 and 2006. He was also ordered to pay $60,000 reparation within three years. Love was convicted of defrauding Merck NZ of $509,975.00.

Love's salary was set by Merck's board in Germany. In 2000, its Japan-based regional manager asked Love, in writing, for his salary for the year and the amount of his bonus the previous year.

Love would then forward his salary and bonus information on to Merck's external accountant for payment into his account.

The Serious Fraud Office case was based on offending from 2000 when his salary advice stated, in error, that his salary was to be $12,000 a month, instead of $7000 per month.

Love did not correct the error and continued to exaggerate his salary for the next six years. He also exaggerated or claimed extra bonuses in 2000, 2001, 2003 and 2004. Due to the inflated amounts, Love was also overpaid holiday pay, days in lieu and company superannuation contributions.

During the sentencing hearing, Love said he could not make reparation as he had no assets – they were all jointly owned with his wife or by a family trust. He was not prepared to ask the trustees to disgorge assets to pay reparation.

- © Fairfax NZ News