Four charged over alleged $30m pub pokie fraud

FOUR men have appeared in Wellington District Court charged over gaming fraud allegedly worth $30 million.

Former Harness Racing New Zealand chairman Patrick O’Brien, his son Mike O’Brien, hospitality consultant Paul Max and a fourth man who has name suppression face 32 charges of obtaining benefits by deception.

The Serious Fraud Office laid charges yesterday after an investigation involving police and the Internal Affairs Department into gaming grants made by the New Zealand Community Trust, Infinity and Bluegrass Trusts since 2006.

About 20 venues, including five pubs in Blenheim, five properties in Wellington, two in Hawke’s Bay and one in Masterton, were investigated.

All four defendants were remanded until March. No pleas have been entered to the charges.

Details of the charges include concealing from the secretary of Internal Affairs that ownership of companies had been transferred from Michael O’Brien to Paul Max, and concealing the influence Michael O’Brien had in the management of Bluegrass Trust to retain control of it.

Internal Affairs general manager regulatory services Maarten Quivooy said the inquiry, named Operation Chestnut, ‘‘has been a significant investigation ... and we’ve welcomed the opportunity to work in partnership with the SFO and Ofcanz’’ (Organised and Financial Crime Agency).

‘‘While we cannot talk about the detail of the allegations while they are before the court, the charge of obtaining by deception is a serious offence,’’ Quivooy said.

‘‘The criminal charges are one aspect of the operation.’’

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