Fraud soured exports of milk, honey

A former dairy and honey distributor has been found guilty of fraud.

Trevor Lock, owner of Nubiotics and Nu-brands, was found guilty of 18 charges under the Crimes Act and two laid by the Serious Fraud Office (SFO) at the Auckland High Court yesterday.

The investigation started about four years ago.

The SFO said Lock entered into a number of contracts to supply product, which he failed to complete. Deposits received under the failed contracts were not repaid and the SFO alleged that the money was used by Lock for personal or other business expenses.

SFO director Julie Read said the prosecution would help preserve the reputation of New Zealand companies as reliable exporters.

‘‘New Zealanders have a reputation for being honest in their business dealings and, for this reason, Mr Lock’s customers trusted the representations he made to them. In reality Mr Lock deceived his customers, using false statements, forged documents and other means to disguise his failure to fulfil his obligations,’’ Read said.

The SFO said Lock also supplied false information to the the watchdog while he was under investigation.

Lock was arrested in Morrinsville in 2015 following an SFO probe into his activities with Nubiotics and Nu-brands.

Nubiotics, which exported products including infant formula and manuka honey, was placed in receivership and liquidation in 2014. The business owed more than $1 million.

The company began trading in 2012, sourcing and blending milk powder for wholesalers. Creditors applied to the High Court to have it liquidated after it failed to complete a number of contracts.