Couple gets 10-year ban for fraud

An Auckland couple have been banned from directing any company for the next 10 years after they defrauded a finance company and an individual.

Nicola James, director and sole shareholder of Coro Dingo and CD Plant Hire, and her partner Edwin Murray, the manager and operator of the companies, were sentenced in the Auckland District Court on a multitude of charges brought by the Companies Office, including forgery, running a business with intent to defraud creditors, and fraudulently using property of the business for personal benefit. James was also sentenced to three months’ home detention and 150 hours’ community work. Murray got six months’ home detention and 200 hours’ community work.

The court ordered the pair to pay a total of $40,000 in reparations to their victims in weekly instalments of $50.

The Ministry of Business, Innovation and Employment said Coro Dingo began receiving regular financial assistance from a finance company to pay for wages and essential expenses in July 2007.

In September 2009, both Coro Dingo and CD Plant Hire were placed in receivership.

The fraudulent activity of James and Murray consisted of selling an asset of Coro Dingo for $65,000 without informing the buyer of a registered secured interest over the property. Murray supplied a forged letter of reference to the finance firm and led it to believe that no money was coming into Coro Dingo’s bank account.

However, Murray and James operated an alternative account and, in September 2009, withdrew $78,000, mostly for personal use.

Companies Office Registries Integrity and Enforcement Team manager Karla Flood said the sentencing sent a message to company directors to work within the law.

‘‘Lots of companies experience financial problems in their lifespan but working with creditors to resolve these issues and being honest in carrying out your business are essential.’’