A parallel tale of financial deceit on two Northland community services dedicated to healing

Northpoint Kaikohe's trajectory took a devastating turn when an employee's actions caused it financial grief. Photo / NZME

Two Northland community outreach services suffered a parallel ordeal that put their survival at risk. Both fell victim to trusted employees who abused their roles, orchestrating fraud that together drained more than $300,000. One, grappling with the aftermath, embarked on a decade-long path to restoration. Open Justice reporter Shannon Pitman tells the story.

A beacon of hope in the community

Northpoint Kaikohe, dedicated to assisting people with drug, alcohol, and mental health challenges, has been a cornerstone in reintegrating clients into the community and helping them find employment.

The organisation supports those grappling with drug-induced psychosis, particularly what the manager describes as a marijuana-induced schizophrenia.

Funded entirely by the Ministry of Social Development (MSD), Northpoint operates an eight-bed house designed to get clients back into the community.

General manager Mark Turner told NZME the clients have major challenges but the organisation is proud of its high success rate, enabling more clients to reintegrate successfully.

“They’re the most vulnerable in our community, people who are worse off are looked after better. Because our clients are capable of being in the community and are in the community, they find it much harder,” he said.

“Most of them have nothing. We try and get them fit because the drugs they are prescribed can cause great problems with their health, obesity and things like that. Often their medication can hold them back because they can’t concentrate.”

The organisation’s trajectory took a devastating turn in 2005 when it welcomed an employee whose actions would plunge Northpoint into a financial crisis.

Northpoint works to integrate those with mental health disabilities back into the community including getting them active and outdoors.

A tale of deceit and manipulation

Between September 2005 and January 2013, Sharon Aird used her position to charge personal expenses, including international travel, clothing, alcohol, food, and other items, to the unsuspecting organisation.

Aird was the sole person in charge of financial matters and chose not to provide transaction details for a credit card, instead relying on handwritten notes on the card summary to conceal the monthly balance.

In addition to misusing the company card, Turner said Aird made 63 unauthorised payroll deposits into her account.

The first signs of irregularities emerged in 2010 when audit discrepancies were detected. In an attempt to cover her tracks, Aird ended the accountant’s services, hoping to escape notice.

However, another employee approached the board in late 2012 exposing the wrongdoing.

Turner said when the organisation went to the police in 2013 after Aird was let go, there was a lack of urgency from authorities and it became a decade-long ordeal of getting action in the courts, marked by financial struggle and a desperate need to cut costs to stay afloat.

“It wasn’t a high priority for Kaikohe police, it was pushed and pushed until we wrote to the Ministry of Justice asking what was going on — then things started happening.”

Aird was charged in 2020. In mid-2023 she admitted her crime, and was sentenced to eight months home detention.

Police told NZME financial crime is complex and sometimes difficult to investigate.

“The investigation team scoured through years’ worth of evidence making inquiries into this and ultimately put someone before the court who was charged and sentenced in relation to this incident.

“While we appreciate it can be frustrating to wait for an outcome, we hope that the decision made by the court has provided some closure in regards to this case,” a police spokesperson said.

Aird told NZME that when she was first brought before the courts in 2014, the charges were thrown out and having to go back to court in 2020 for issues she believed were resolved took a toll on her. Aird maintains she took $14,000 of the alleged $110,000.

“The process from the court and the time it took according to my lawyer, I became a victim as well. I acknowledge what I did was wrong and the $14K and I feel whakamā about it all, I still feel sick about it.

“Yes I did offend but not to the extent prosecution put forward and one of the reasons I pleaded guilty was because I ran out of money and could not afford to defend myself, I didn’t have an option,” Aird said.

Desperation and resilience

As the financial deceit unfolded following Aird’s exit in 2013, Northpoint found itself on the brink of collapse.

“We were broke. Scrounging. And I mean scrounging,” Turner recounted.

As police continued to make their investigations, the organisation had to make the painful decision to downsize its staff from 10 to four - a move essential for survival with Turner going without pay for extended periods to ensure the organisation did not run out of funds.

“Our board chairman was putting in sums of money to keep us going. We’ve been running old vehicles and operating out of a run-down building,” Turner said.

The organisation, once thriving, was now grappling with financial instability in 2013, relying on the dedication of its remaining staff and the generosity of its board members to weather the storm.

When Aird finally pleaded guilty in mid-2023, Turner expressed frustration at the lack of restitution. Despite stealing more than $100,000 there was no requirement for her to pay the funds back.

“It’s just sad. She’s got away with it and she got away with it big time.

“No apology letter, nothing. If they were remorseful, they would show remorse. It’s wrong. You’ve stolen off the most vulnerable,” Turner said.

Aird said she was issued a notification from the chair of Northpoint and was not allowed to contact them to offer an apology.

“At the time of offending, I was in a manic state, my judgment was impaired.

“I totally accept responsibility for the $15K and am sincerely sorry for what I did to the tangata at Northpoint,” Aird said.

Turner said the organisation was starting to over the crisis and now had money in the bank.

“We’re finally able to pay another employee, only part-time but it’s still good for the community.”

A parallel tale of betrayal

Northpoint’s plight is not an isolated incident.

Jigsaw North Manaaki Whanau, a registered trust based in Whangārei, employs 14 staff providing counselling and support services and faced a similar situation when its administrator, Kathryn Morale Holmes, was caught embezzling more than $200,000 in 2021.

Hired to handle accounts, manage payroll, and seek funding, Holmes manipulated payments between 2018 and 2022, diverting funds meant for IRD into her account.

As the sole financial administrator, Holmes ensured she was always on deck before the 20th of each month so no one would notice financial disparities. When letters were sent from the auditors questioning anomalies, Holmes would forge the documents before producing them to management.

Jigsaw North manager Libby Jones told NZME that as an organisation that offers social services, their staff are naturally empathetic and had built a close bond with Holmes supporting her through a multitude of personal issues.

Jigsaw North manager Libby Jones with current staff. Photo / Mike Cunningham

“I felt the added stress from the staff about the fraud and have had to see their pain and anger. While we reassured them that Jigsaw would make it right for them, we knew we had all been stolen from by someone we trusted,” she said.

“She took advantage of our kind and caring natures and ripped us off with a straight face. It wasn’t a case of stealing from us just once, but every week for four years.”

One staff member was saving for her first home and had increased her KiwiSaver contribution to achieve her goal and said finding out payments weren’t being made shocked her.

“My student loan payments weren’t being made, mine and others’ working for families got affected and whenever we questioned her about what was going on, it was smoke and mirrors and she would tell us she would sort it out and we trusted her.”

Board chair David Hain said the deliberate deception of an organisation that gives people opportunities to change their lives was traumatic.

“All board members feel a level of responsibility for not identifying the criminal behaviour at an earlier stage.

“The trauma from realising what seemed to have happened and having to meet to deliver disciplinary actions, ongoing meetings with accountants and various funders who included government ministries, various trusts, our auditors and insurance agents,” Hain said.

“Perhaps the toughest of these was meeting with and dealing with staff and their concerns, questions and trauma as they realised the depth of offending against themselves.”

Holmes’ actions, totalling $224,758, saw her jailed for 30 months. Jones felt there was little genuine remorse shown.

Jigsaw North general manager Libby Jones. Photo / Michael Cunningham

Reparation was also unlikely as Holmes was bankrupt. Jigsaw was covered by crime insurance but their premiums have tripled since the offending.

“Unfortunately, our dream of moving to a bigger and more suitable location was put on hold due to the fraud. We are still working towards this goal to move to a new location, but we have a significant shortfall to be able to achieve this,” Jones said.

“The experience could have been disastrous for us, but while it was traumatic and a lot of work to sort it out, it has made us even stronger, and we have continued to grow with new contracts and more staff.

“We have educated ourselves in fraudulent crime and have since put in place new accountants and more robust administration processes. I would never want another organisation to go through what we have. We at Jigsaw North are proud to say we will continue to support our community.”

A spokesperson for the Department of Internal Affairs told NZME charities and their officers have a number of obligations under the Charities Act 2005 including a requirement for the officers to act in the best interests of their charity, and govern effectively.

“There are a number of excellent resources available to support groups in exercising good governance. These include Community Law’s Community Toolkit, the CommunityNet Aotearoa resource hub, Community Governance Aotearoa, and the Institute of Directors New Zealand.”

Shannon Pitman is a Whangārei based reporter for Open Justice covering courts in the Te Tai Tokerau region. She is of Ngāpuhi/ Ngāti Pūkenga descent and has worked in digital media for the past five years. She joined NZME in 2023.