Crime that shocked CHB
The betrayal of trust committed by Hastings lawyer David John Porteous, sentenced to six months’ homedetention last month for stealing almost $80,000 fromclients during a three-decade legal career, was reminiscent of disgraced formerWaipawa accountant, Warren Pickett. TheCHBMail looks at a case that rockedCHB. considered for early release andwas granted it after a parole board hearing six days later.
Parole conditions state that 67-year-old Pickett must not undertake any employment as an accountant, be involved in any transaction involving other people’s money and he cannot be involved in any employment without the consent of his probation officer.
He has been paroled to an unidentified addresswhich is not thought to to be in Central Hawke’s Bay, where his property was sold for $1,020,000. The proceeds were unable to be touched by liquidators.
He cannot move from the parole addresswithout the officer’s approval and, in the conditions which apply until six months past the five-year sentence expiry, he is not allowed to contact or associate with any of his known 212 victims.
As an undischarged bankrupt he cannot undertake any form of self-employment.
Despite the number of victims, just one made a submission to the board.
“In essence, that person does not believeMrPickett should be released at this time,” panel convener Judge Richard Watson said. “The submission has been given due weight by the board.”
Pickett moved from Feilding to Waipawa in 1971 andworked as an accountant. In the late 1980s, he bought limited liability companies Waipawa Holdings and Waipawa Finance. Through them, as sole shareholder and director, he ranwhat has since been labelled a Ponzi scheme, accepting deposits from investors and providing loans to individuals and businesses.
During two decades, money given to him for investment was channelled through the companies to failed schemes, and used as other investors’ withdrawals.
The financial roundabout he created eventually spun out and inAugust 2008 he shut the doors and the Serious Fraud Office became involved, stunningCHB. The company’s liquidation found liabilities totalling almost $20 million, no more than five per cent likely to be recovered for victims.
Also unable to be touched by liquidators was a Taupo house owned in Pickett’s wife’s name. She is understood to have separated from him and not living in Hawke’sBay.