Duo not guilty in near $750,000 political donations case
Two men have been found not guilty of fraudulently depositing money into a New Zealand First Foundation account, in breach of the Electoral Act.
The duo faced a judge-alone trial at the High Court at Auckland after being charged by the Serious Fraud Office with two charges of obtaining by deception.
They were accused of transferring just under $750,000, which went on party expenses.
Justice Pheroze Jagose issued his decision on Friday, finding the pair not guilty.
Despite media organisations’ bids to reveal the pair’s identities both before and after the most recent general election, they were granted permanent name suppression by Justice Jagose on Wednesday.
Neither of the men charged is a minister or sitting MP or was a candidate prior to the 2020 election.
After the verdict was released, New Zealand First leader Winston Peters issued a statement titled ‘‘innocent again’’.
‘‘I maintained that there had been no wrongdoing,’’ Peters said. ‘‘Today the High Court confirmed that no crime had been committed and New Zealand First has again been cleared of all charges.’’
At trial, the Crown said that between 2015 and 2020, about 40 donors to the New Zealand First Party believed their donations were going to the party – but they didn’t because of a fraudulent device, trick or stratagem by the defendants.
Instead of the party’s bank account number, five donors were given an account for a business owned by one of the defendants and 35 donors were given the account number of a trust – the New Zealand First Foundation.
Justice Jagose heard the money was spent on a video of Winston Peters’ bus touring New Zealand, an appearance fee for boxer Joseph Parker, leasing and furnishing office space in Wellington for the NZ First Party HQ and a tent at a racing event.
More money was spent on computer software that helped develop a fundraising database.
Numerous rich listers and donors said they thought they were donating directly to Peters and the party, not the foundation, the court heard.
Tudor Clee, acting for one of the defendants, said the Serious Fraud Office had no evidence of a crime under the Electoral Act. None of the donors complained or were deceived, he said.
Former senior whip of the party and former Tauranga list MP Clayton Mitchell said he was ‘‘gobsmacked’’ when he found out what some donations were being used for, including the computer software.
In Justice Jagose’s judgment, he said he was not satisfied beyond reasonable doubt the duo ‘‘retained control’’ of the money against a better claim to it.
However, he was not satisfied the money donated could be classed as party donations.