Michael Joseph O'Brien, Paul Anthony Max and Kevin Coffey guilty of multi-million dollar pokie fraud

Three men have been found guilty of a multi-million dollar pokie machine fraud. Photo / file

Three men have been found guilty of a multi-million dollar pokie machine fraud.

The Serious Fraud Office (SFO) said in a statement that the men were found to have manipulated gambling licenses and grants.

The fraud was detected in a joint investigation, "Operation Chestnut" involving the Department of Internal Affairs (DIA), the Organised and Financial Crime Agency of New Zealand and the SFO.

Michael Joseph O'Brien, 58, of Blenheim, Paul Anthony Max, 60, of Nelson and Kevin Coffey, 57, of Hastings, all faced charges of obtaining by deception.

In High Court at Wellington today, O'Brien was found guilty of five charges, Max guilty of three charges and Coffey guilty of one charge and not guilty of one other.

SFO director Julie Read said funding from pokie machines provided millions of dollars of community funding for sport, health, education and other activities every year.

"Operation Chestnut has been effective in enabling the DIA to pinpoint areas where compliance can be lifted in the sector so that pokie machine benefits can continue without the risk of manipulation or potential criminal activity," she said.

The investigation was a significant case in New Zealand for the "Class 4" gambling sector, which is made up of high-turnover gambling including gaming machines in pubs and clubs.

The three men were remanded in custody and are due to be sentenced on July 13.