Detention for fraud

A Whangamata builder whose employee stole more than $166,000 from his business is confident of rebuilding his company.

Linda Allan, a 60-year-old office worker was yesterday sentenced in the Hamilton District Court to 7 1/2 months' home detention and 140 hours' community work for the extensive fraud.

She had earlier pleaded guilty to one charge of theft by a person in a special relationship and one of obtaining by deception.

Allan's offending occurred while she was employed as an office administrator at Whangamata-based Peter Davison Builders Ltd. The offending nearly crippled Mr Davison's business, forcing him to to sell several properties to pay creditors and use inheritance money to pay his debts.

Between September 2005 and August 2008 Allan fraudulently drew 56 cheques, totalling $151,168.80, from the company's bank account.

Allan's fraud also included $15,031.29 in unauthorised wages.

Her actions often resulted in the company's account going into overdraft, causing the business to incur interest or dishonour charges amounting to $27,189.77.

Her victim, Peter Davison, also paid out a further $35,500 in investigation costs and legal fees to resolve the company fraud.

Allan's offending was discovered only after she took sick leave and Mr Davison took a more "hands-on approach" to the company's accounts.

When confronted about her behaviour, Allan admitted stealing the funds, saying she had a gambling problem with poker machines.

Allan said she also gave some money to her grown-up children, paid off credit card debits, and purchased a mobility scooter for her mother.

Defence counsel Nick Birdsey yesterday said Allan had made "vigorous efforts" to repay the fraud, including putting her home on the market.

Judge Denise Clark said Allan's fraud was deliberate and repetitive and caused her victim significant loss.

The court was told Allan has agreed to pay the stolen money back, and in September 2008 made a partial payment of $60,000.

Speaking afterwards, Mr Davison said he was satisfied Allan's sentence would keep her away from the temptation of poker machines.

"[Allan] was a good worker with great computer skills," he said.

"She was very efficient at her job but once she got that gambling addiction she found it too hard to control."

Mr Davison was confident he could rebuild his business.

- © Fairfax NZ News