Horse breeders betrayed
Robert Tapp took advantage of his clients, stealing a total of $270,000 from Matamata horse breeders and trainers.
Entrusted to take care of renowned Waikato race horse trainers’ accounts, Robert Tapp instead siphoned more than $270,000 to pay off his own home loan.
It was ‘‘planned and deliberate’’ offending which spanned three years and international accounts, and all done while the Matamata accountant was bankrupt.
Yesterday Tapp, 66, was sentenced to 12 months home detention and ordered to pay $290,285 in reparation to Matamata horse breeders Gary and Jenny Hennessy who were left commercially scarred and embarrassed by Tapp’s actions.
Gary Hennessy is the last New Zealand trainer to win the Australian Cox Plate trophy race with his horse Ocean Park.
Tapp had taken advantage of their trust, destroyed relationships with Hong Kong clients and ‘‘bled them dry of their hard earned dollar’’, Judge Garry Collin said during sentencing in the Hamilton District Court.
‘‘You set up systems of accounts that almost from the outset had the purpose of taking money from them,’’ Judge Collin said.
‘‘They feel betrayed by you and ripped-off. They are completely innocent in this and the only mistake they made was trusting you.’’
Tapp had worked for the Hennessys, who run the family owned race horse training and breeding business Kingston Lodge, for 10 years under his Tax Link BOP company.
In 2012 he set up new software and advised the Hennessys to open bank accounts in the names of individual Hong Kong clients.
Then between August 2013 and September 2016 Tapp took $272,520 from the Hennessy linked accounts.
Of that, $262,838 was siphoned by transferring money from an individual Hong Kong account into a syndicate account and from there into an account controlled by Tapp.
The payments were in small amounts and made via a large number of transactions. They used various references to shroud the exact nature of the transactions.
Tapp made further transfers of $4761, $1581 and $3340 directly from three of the Hong Kong clients accounts into his own account.
The money was ultimately used by Tapp to pay his own home loan, the judge said.
‘‘The Hennessys placed considerable trust in you over a long period of time. They set up a system that you recommended. Payments were made in the way you advised.
‘‘They gave you the ability to access funds and deal with finances on their behalf.’’
This was deliberate and premeditated, he said. The Hennessys were paying tax on money they didn’t receive and were embarrassed when called out over unpaid accounts they weren’t aware of.
‘‘This was devastating to them.’’ The couple forked out an additional $13,520 in accounting costs to examine the offending and $4255 to set up new software.
The judge also noted that Tapp was bankrupt during this time but had failed to inform the Official Assignee that he was working and receiving money for his work.
Tapp’s lawyer Jess Tarrant said her client acknowledged he breached the Hennessy’s trust and is remorseful. He was committed to repaying the full amount and had changed real estate agents in efforts to sell the property.
What set this case apart was that reparations had been secured and repayments would be made, Judge Collin said in considering a sentence.
Tapp was attempting to sell the property to repay the Hennessys and a caveat had been placed on the title to ensure reparations be paid via secured loan. This case was on the ‘‘cusp’’ of a jail term and home detention sentence. Collin began with a starting point of three years and considered his personal circumstances – that he was employed and the sole earner for his family, which included supporting his granddaughter and wife, who was suffering from medical conditions.
He allowed a 12 month discount for personal factors and the reparations secured before sentencing Tapp to 12 months home detention. He also ordered an additional $3075 be paid in legal costs the Hennessys had incurred.
‘‘I consider this to be on the lenient side but just within the range.’’
Speaking outside court, the Hennessys said they now felt exonerated of any wrongdoing and were satisfied they would eventually get the money back.
Tapp’s actions were a complete breach of their trust by someone they considered to be a friend and professional. They also wanted to thank Judge Collin who had taken charge of the case to ensure the money was repaid.