86 years to fix fraud
A woman who embezzled money from the New Zealand Defence Force to fund her gambling addiction would have needed more than 80 years to pay back what she stole if a judge had accepted her $50 a week proposal.
The offending has led to a Court of Inquiry into the management of non-public funds in the Defence Force.
A large group of supporters watched as Paniparewhakaro Elizabeth Rangiuia was sentenced in the Levin District Court, sitting in Palmerston North, on Wednesday to 12 months’ home detention.
She entered the dock with a packed bag, clearly prepared to be sent to prison for her crimes – theft and false accounting – which netted her $225,000.
Judge Jonathan Krebs said it was not a case where prison was the right outcome, instead sentencing her to the maximum allowed home detention.
She was also banned from going to anywhere she could gamble, including venues with betting facilities, for two years and sentenced to 250 hours’ community work.
She was not, however, ordered to pay back the money, as she could only do so at $50 a week.
It would take 4500 weeks, or 86 years and six months, to pay back $225,000 at that rate.
Rangiuia worked for the Defence Force for more than 30 years, including overseas.
Her fraud related to nonpublic club funds she managed at the Waiouru Military Training Facility.
‘‘Your fall from grace here was as a result of addiction, not high living.’’
Judge Jonathan Krebs
The funds were raised or gifted by army personnel and were intended to be spent on services for the health, wellbeing and retention of such personnel.
Rangiuia had control of four bank accounts relating to 25 social or sporting clubs, including one set up by the Second New Zealand Calvary Regiment during World War II to fund students attending light-armoured vehicle courses.
She forged signatures on cheques and falsified cash books, among other deceptions, to
conceal her crimes, stealing from the accounts for seven years.
She put most of the stolen money through the pokies at the Oasis Hotel in Waiouru.
Her offending may not have been discovered if she had not confessed to her manager in September 2018.
Defence lawyer Michele O’sullivan said remorse was behind Rangiuia confessing.
She initially wanted to pay back the money, but realised she was out of her depth as the bill grew.
‘‘She felt dreadful for what she has done.’’
She fully complied with the investigation and wanted to put things right, O’sullivan said.
But she did not have any significant assets, so could only pay it back at $50 a week.
Crown prosecutor Dale La Hood said the victims were the New Zealand taxpayer and members of the clubs whose money was frittered away.
Rangiuia had built up significant trust throughout her time in the Defence Force, which she then abused to take the money.
Rangiuia’s previously clean record needed to be balanced against the years of fraud, while her gambling addiction could not be used as mitigation, La Hood said.
Krebs said that the most striking aspect was the duration of offending combined with Rangiuia’s efforts to cover her tracks.
But it was not a crime that left a large trail of ruined lives, as often happens with large-scale fraud.
‘‘Your fall from grace here was as a result of addiction, not high living.’’
After the sentencing, the Defence Force announced via a statement it had established a Court of Inquiry.
It had waited for the criminal proceedings to end so the inquiry did not interfere with that process.
Chief of Joint Defence Services Brigadier Rob Krushka said work was already under way to improve the management of non-public funds before Rangiuia confessed.
The inquiry would help minimise any future risk of fraud, he said.