Auckland Man Guilty In Serious Fraud Office Prosecution Over Attempted Multi-million Dollar Covid-19 Fraud
An Auckland man who tried to fraudulently claim millions of dollars through the Covid-19 wage subsidy scheme (WSS) and other government support schemes has been found guilty following a trial on charges brought by the Serious Fraud Office (SFO).
Hun Min Im faced 91 charges related to his attempts to claim $1.88 million from the WSS, as well as from the Small Business Cashflow Scheme, COVID-19 Support Payments and Resurgence Support Payments. In total he attempted to claim $2.3 million and received almost $624,000.
On Friday Mr Im was found guilty of 18 charges of obtaining by deception, and 16 charges of using a forged document. Just prior to the end of his trial, which concluded at the Auckland District Court on 13 May, Mr Im pleaded guilty to 54 charges of dishonestly using a document. Three obtaining by deception charges are yet to be determined.
Mr Im submitted 42 WSS applications on behalf of eight companies and four sole traders, none of which were trading in New Zealand or had any staff. He forged signatures and used forged documents when incorporating companies, filed GST returns to claim refunds his companies were not entitled to, and sought a further $172,800 in Covid-19 subsidies from Inland Revenue that he was not entitled to.
'Mr Im's offending was deliberate and wide-reaching,' says SFO Director Karen Chang.
'He created a complex web of fake companies and forged documents which our expert teams spent many hours piecing together. He stole the personal information of his tenants and applicants who responded to fake job ads he placed online, to use as shareholders, directors and employees in his companies.
'Mr Im took advantage of public money that was intended to support people and businesses during a time of significant stress and uncertainty. Any money he received was used to fund his personal lifestyle, including an apartment and luxury vehicle.'
Misappropriation of targeted Government funding is a key focus area for the SFO, particularly in times of emergency recovery. During such times the focus is on getting help to those who need it most, as quickly as possible. This urgency can create opportunities for those looking to exploit relief programmes.
This case was referred to the SFO by the Ministry of Social Development (MSD) following its own initial investigations. Further work alerted SFO to possible fraudulent activity against other Government organisations.
Ms Chang says, 'We want to recognise the cooperation and support provided by Inland Revenue, Police and the Companies Office to our investigation. This includes the Police Asset Recovery Unit, which restrained a property and vehicle following a referral from the SFO. The investigation was a great example of agencies working together to investigate abuse of public funds.'
The SFO's Counter Fraud Centre (CFC) works closely with the public sector to support efforts to build resilience to fraud and ensure controls are in place to protect public funds. Last year the CFC released a new guide to Managing Fraud During Emergency Relief and Recovery which offers practical tools and principles to safeguard critical funding in times of crisis.
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