The forensic accountant and the ‘red flags' he discovered during alleged theft investigation
The name of the company he was formerly associated with also has interim name suppression.
On day two of the trial, Parsons continued giving evidence, detailing the report he compiled for the company's board of directors in 2018.
He initially did one report, covering a 13-month period, but given what he discovered he was asked by the board to extend the ambit of his investigation to another year.
Parsons was initially contacted by one of the company directors to investigate because of 'alleged misappropriation' by the defendant.
He was able to put the allegations into three categories: money that had vanished by way of cash cheque, the defendant's personal loan, and the personal expenditure.
Asked by Crown solicitor Tom Sutcliffe if he recognised any red flags, Parsons said he wouldn't expect to see brokerage being charged by the company.
'Because under the Credit Contract and Consumer Finance Act, the creditor [company] ... can charge reasonable fees, documentation fees, search fees, and can charge brokerage ... but only charge these fees that it has paid out to a third party.
'Because there was no broker, they couldn't charge a fee for paying itself.'
He said most of the transactions were from customers who either walked in or were refinancing existing loans.
'So there's no broker involved in these transactions.
'So it's my understanding they were not entitled to charge these at any rate.
'That was the first red flag.'
The second was when he discovered the cheques were made out to cash.
'Quite simply, you need to be able to account for who you pay the money to.
Advertisement Advertise with NZME.
'If it goes into a cash currency we don't know where it's gone after it has been cashed at the bank.
'So if [defendant] cashed it, he had $600 in his hand and we don't know what happened to that.'
The only way it could be traced is if the cash was being put back into the company bank account, but that didn't happen, he said.
'There was no record of what happened to the cash,' Parsons said.
During his investigation, Parsons said he spoke with the broker used by the defendant.
Parsons said the broker told him he didn't receive his share of some of the broker fees.
Parsons also discovered broker forms that had the broker's name on them but not his signature.
When asked by Sutcliffe what his concerns were about the cash cheques, Parsons said the cheques could have just been made out in the name of the broker.
Sutcliffe then asked him to justify the defendant's alleged deposits.
'$600 is banked as cash by [defendant] into his account. Then he's used broker fees to reduce his debt.'
All up, the defendant is alleged to have reduced his personal loan by $18,600 by the various cash deposits, he said.
'You would expect to see reasons for each of these credits,' Parsons said.
Advertise with NZME.
His investigation also uncovered purchases of weedkiller and sprayer worth $182.56, a $140 smoke alarm, a $849 vacuum cleaner, Hush Puppies and shoe care kit, Wet and Forget Tiger Paw Shower Witch cleaner worth $229, and a Sunbeam 'big fill' toastie machine, charged to either the company's office or general expenses.
He also got his personal car cleaned at Trim Effects Waikato, worth $172.50, noting that it had been 'damaged by rubbish'.
The man says he has done nothing wrong.
'My defence is quite simple. I have committed no crime,' he told the jury on Monday.
'I'm simply carrying the can for a poorly governed company.'
The man said a 'disconnect' had developed between himself and the board of directors.
The trial is expected to last about two weeks.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
2 hours ago
- NZ Herald
Court martial for soldier accused of covertly filming women during sexual encounters
He admits taking the videos and images - but says the women consented, or he genuinely believed they were consenting at the time. The women reject this, saying they had no idea they were being recorded. Court martial proceedings began today for Smith at Burnham Military Camp before Judge Tom Gilbert. A court martial is a military court that tries members of the armed forces for violations of military law. It is a structured legal process, similar to a civilian court, and a decision on guilt or innocence is made by a panel of military members - three in Smith's case. If a defendant is found guilty, punishments can include fines, demotions, or imprisonment. Until today, the Herald could not publish details of the allegations against Smith. Between August and November 2020, he is accused of 'intentionally or recklessly' making an intimate visual recording of a woman. He is further charged with deliberately making intimate recordings of a second woman in November 2020 and December 2020. The alleged civil offences contravene the Armed Forces Disciplinary Act 1971. Judge Tom Gilbert. Photo / Pool The names of women have been suppressed. Both were in new relationships with Smith at the time of the alleged offending. Judge Gilbert also suppressed the specific details of the content of the videos and images. He said the Herald could only describe the content of the material and 'what was engaged in between parties' as 'intimate sexual activity'. Anything outside that description was prohibited. During the trial, the court will hear from both complainants via audio-visual link, and the panel deciding Smith's fate will be shown the intimate recordings in question. A number of other witnesses will also be called. Prosecutor Flight Lieutenant Hannah O'Byrne outlined the Crown case against Smith this morning. Corporal Manu Smith at the Court-martial proceedings. Photo / Pool She said the first woman met Smith in July 2020, and a sexual relationship 'progressed quickly'. During sexual activity at her Christchurch home she 'felt something was off' and when she looked up Smith was 'pointing his cellphone at her'. She told him to stop recording and delete the footage. 'She told him off for recording her and he played it off as a joke,' said O'Byrne. The woman assumed the footage was deleted - but Smith later sent it to her via Snapchat. Snapchat is social messaging app where messages are designed to disappear after being viewed or after a set time 'She told him off again, saying she told him not to do that and it wasn't ok,' said O'Byrne. The woman stopped seeing Smith and reported the matter to the police. The second woman was at Smith's defence house in Burnham when she was recorded. O'Byrne said that during sexual activity,, Smith took three photos of the woman. 'Without her consent - or even time to discuss what was happening. At the time,the she did not realise (photographs were being taken),' said the prosecutor. Prosecutor Flight Lieutenant Hannah O'Byrne. Photo / Pool Smith sent her the images on Snapchat, and she took screenshots. She told him to delete the photos, and he 'played it off as a joke'. Smith sent her the images on Snapchat, and she took screenshots. The pair engaged in sexual activity a few days later. 'She could not see what he was doing,' said O'Byrne. 'She did not realise she was being filmed.' Later on, she received a message from Smith on Snapchat. Given his messaging history, she decided to turn on screen recording before she opened it. It was the footage of her taken during sex. 'She asked if he had sent it to anyone else. He played it off as a joke,' said O'Byrne. The second woman reported the incident to police, handing over the screen recordings. Defence lawyer Matthew Hague. Photo / Pool The court heard that during their relationships with Smith, they had willingly and knowingly sent him explicit images and video, including naked photos. These were sent via Snapchat. Both vehemently reject Smith's explanation that they consented to him filming and or photographing them. The first woman began giving evidence before lunch. 'In the video, you can see me trying to swipe his phone away, telling him to put it away,' she said. She said there had been no discussion before sex about whether Smith could record. When she told him off, he was 'very blase'. 'He just said 'no, it's all good',' she recalled. She said she felt 'pretty gross'. 'My privacy had been invaded,' she said. In a brief opening address, Smith's lawyer, Matthew Hague, told the panel that his client denied all the charges. 'Let me be clear… what you've heard… is just allegations,' he said. 'It is not evidence. At present… the accused must be presumed innocent." The court martial is set to continue for at least three days. Anna Leask is a senior journalist who covers national crime and justice. She joined the Herald in 2008 and has worked as a journalist for 19 years with a particular focus on family and gender-based violence, child abuse, sexual violence, homicides, mental health and youth crime. She writes, hosts and produces the award-winning podcast A Moment In Crime, released monthly on
RNZ News
a day ago
- RNZ News
Stuff twins up with Trade Me, NZME top table change
The same day Stuff twinned up with Trade Me, its big rival NZME overhauled its board and ushered in a self-described 'agitator' from overseas. But both are banking on profitable property platforms at the heart their businesses. A good thing for media that need money - or a plague on both their houses? Also - the backlash against the backlash against dangerous games.
RNZ News
a day ago
- RNZ News
Mediawatch: Who calls the shots after change at the top?
The New Zealand Herald reports the news that its rival has gone into business with Trade Me. Photo: New Zealand Herald "NZME's D-Day is finally here" said a headline in the New Zealand Herald last Tuesday, before shareholders of its owner NZME settled a bitter battle over its governance. But in the end, there was no fighting on the beaches. The existing board and the activist shareholders who wanted to clear it out compromised late last month and endorsed an agreed slate of nominees. That included the Canadian billionaire who sparked the whole saga, James Grenon. He has lived here for 12 years but had such a low profile only two photos of him appeared in the many media stories about his bid for control. Grenon had not been heard in public here until last Tuesday's meeting, at which he told shareholders he was virtually "a ghost on Google". He has only been an NZME shareholder since February when he bought between 9 and 10 percent of the shares. He currently owns a 13 percent stake. Soon after he told the board he wanted to be the chair - and to act like "an owner-operator" and "delve into the operational details so as to be able to challenge management." This raised eyebrows, given he helped to set up alternative news sites critical of the Herald and other local news media. In mid-March, the main journalists' trade union E tū called on Grenon to guarantee he would not interfere in NZME editorial decisions. The Post reporting in NZME's chair speaking out against a bid to oust the current board of the company. Photo: Stuff / The Post NZME's board - on the defensive at that time - said it was also concerned that Grenon's takeover bid was an effort for "control over a newsroom, rather than anything else". More media eyebrows were raised when the Free Speech Union confirmed it encouraged billionaire Jim Grenon's investment in the NZME as part of a campaign to "retake our institutions - one board at a time." But Grenon insisted his main focus was NZME's financial performance and how it had been represented by the previous board. His belief that NZME's profitable property platform OneRoof could be a source of greater reward evidently resonated with other shareholders too. In the end, after some awkward questions to James Grenon on Tuesday, shareholders gave a green light to the governance plan. Grenon is now on the board led by former radio entrepreneur and government minister Steven Joyce. So peace in our time at NZME - at least, for now. But earlier in the day, shots were fired by NZME's main rival in news publishing. Stuff Group chief executive Sinead Boucher and TradeMe chief executive Anders Skoe. Photo: Supplied / TradeMe Hours before NZME's meeting, Stuff announced TradeMe would take a 50 percent stake in Stuff Digital, the online wing of the company that does not include the newspaper mastheads like The Press, The Post and their websites. It is an alliance observers expected after Stuff's sole owner Sinead Boucher split the company in two last year - and then divided her single share into one million in February. What's in this for Trade Me is pretty clear - more eyeballs for stuff that's for sale on its own online marketplace, especially houses. But what will it do for Stuff and its users? And what is the catch for Stuff? "We've been doing quite nicely on our own ... [but] it allows us to expand and do more and to keep growing," Sinead Boucher told Mediawatch. The money that changed hands in the deal - and the terms - were confidential, but "there is a capital injection there that we will use to do all sorts of things," Boucher said. "We're going to start with rebranding the Stuff Property section and to Trade Me Property and some added features in that. Trade Me has all the data and expertise and insights. We'll be following not too long after that with motoring. Let's see what comes after that." The 50-50 split of Stuff Digital will be run by a board of two members of the Stuff Group, and two from Trade Me including chief executive Anders Skoe. "I will be the chair and I have the casting vote on that board," Boucher said. But Trade Me is much bigger than Stuff. What if they want more bang for the undisclosed bucks they're now investing? "Those scenarios have come up and just been discussed in all we've gone through the last few months to make sure that both sides are perfectly comfortable." Would Trade Me allow Stuff to sell part of its stake to another party? Or seek or accept investment from another? "You're touching on what would be the confidential terms of the deal, so I can't really comment on that in any detail," Boucher said. During the NZME boardroom battle, it also emerged that NZME had approached Stuff about acquiring its mastheads. When asked at the shareholders' meeting on Tuesday, NZME chief executive Michael Boggs said he was still interested in acquiring Stuff's mastheads. "He has my number, but I've got my own things going on at the moment. I'm not intending to do anything with that business at this stage," Boucher said. What NZME's new leaders decide to do will also move the media industry - and public life. It owns the Herald and other weekly, daily and community papers, and the Herald's news website and app have a huge national audience and more than 150,000 subscribers. NZME also has half the country's radio networks, including the country's top-rating talk radio station Newstalk ZB. On top of all that - and maybe worth more on its own - is NZME's OneRoof, which posted a 50 percent leap in revenue last year. The outgoing board was already looking at splitting it off with separate governance and management, or even selling it. Property content platforms can be goldmines for media companies. Stuff's former Australian owner Fairfax Media created Domain to cater for the A$7 billion a year real estate market. It's just been sold for A$2.8b to US property firm Costar by current owner Nine Entertainment - the same company that offloaded Stuff to Boucher for one symbolic dollar five years ago. NZME will be anxious about Stuff's Trade Me property joint venture eating OneRoof's lunch. "We are now dealing with an integrated media enemy," one of the shareholders said at the NZME meeting last Tuesday. For years, Stuff has looked for ways to bring in money - broadband, electricity and even noodle night markets. When Warner Brothers Discovery closed Newshub last year, Stuff struck a multi-million dollar deal to produce ThreeNews. Is property content now the future for funding news? "It reflects the position it holds in people's lives and how important all things about property - buying, selling, saving, mortgage rates - all of those things perform well on our site," Boucher said. "With Trade Me being number one in that area I think we will end up producing a more useful, more relevant product for our audiences." "Before bringing someone in or selling part of part of the business ... you have to be on the same page around the sanctity of editorial independence," Boucher said. "The business continues to run operationally independently, and Trade Me is very happily in support of our editorial independence. They will have absolutely no say on the content that goes on the site." "I fielded one call from someone who wanted to buy one of our local papers. They wanted to change the mayor of the town. Some wanted to buy a whole media company for the power of influence on the public agenda." Concerns that the new board at NZME will seek to change editorial practice have been a sticking point ever since Grenon raised them in his initial bid to be chair. Grenon's final written notes for shareholders to ponder included the claim that AI could be deployed to track political bias in NZ Herald journalism. "Things were drifting downhill from my perspective ... particularly in the editorial front," Grenon said Tuesday's meeting. "I thought, well, maybe I can sort of jump-start something here. And I'm very, very delighted with the way it seems to have worked out." Another shareholder (also coincidentally from Canada) urged Grenon to "inject more balance" on climate change to NZME journalism. "Ultimately, there's very few businesses that you really can try to look over the shoulders of your staff as they're performing the business. I don't know that writing is a heck of a lot different than that," Grenon replied. "But you can have general guidelines, and you can also score after the fact and see how you're doing at meeting these guidelines. If they aren't meeting the guidelines, you can sort of nudge them in the right directions." "Maybe I would like to see more clear score-keeping than has been going on, although perhaps my eyes will be opened when I get on the inside," he added. An editorial advisory board will be established by the new regime. One of the members will be lawyer Philip Crump, who previously blogged and broke the odd story under the pseudonym Thomas Cranmer - an archbishop of Canterbury executed for heresy. It is not Crump's first gig at NZME. In mid-2023, he was appointed as editor of ZB Plus, billed as "a go-to platform for news and commentary" for paying subscribers. ZB Plus was off the ZB site months later - but his is the only media company experience among James Grenon's candidates. "Having worked in the same newsroom as Philip Crump, we do not believe he has the experience, ability, or mana to take on what would be an influential role," E tū's union representative Isaac Davison - also a senior Herald reporter - said in a letter to Grenon in mid-April. Philip Crump has claimed journalists should welcome many of their new ideas for NZME, such as restoring the NZ Herald's editor to NZME's executive leadership team. On his Substack, he published Six Challenges Undermining Media Trust "Addressing these issues requires not just critique but actionable reform," he wrote, but he has declined to be interviewed for Mediawatch about this until later this month. Former Herald editor Gavin Ellis reckoned the new chair Steven Joyce would be aware of the danger of editorial overreach. "The board has an important role, but the board also shouldn't be making individual decisions about individual items ... in the general course of events anyway," Steven Joyce said on Tuesday. "(Editorial advisory boards) are quite common internationally. It's an opportunity to debate and support the development of editorial policy. In every business, we can get very, very busy day to day - and journalism is one of those businesses - so it's that opportunity to test that thinking independently." "I can assure you that the board's view will be ... to try and enhance and strengthen the editorial offering of NZME - and not do anything else." Media Minister Paul Goldsmith appointed Philip Crump to the NZ On Air board recently. This week the minister told Newsroom he would take advice managing the conflict of interest arising from oversight of public funding for journalism. When Newsroom asked the minister if Crump could recuse himself from funding decisions he replied: "Anything related directly to journalism would be an obvious place to start." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
