KEY POINTS:
James Smart led an enviable lifestyle. He had frequent holidays abroad, owned four properties, flash cars and expensive jewellery.
Puzzled associates questioned why the finance manager seemed far wealthier than his modest salary would allow, but Smart replied that he had received a large inheritance and was shrewd
in business.
The good life ended when the Serious Fraud Office called at his Torbay home on the North Shore. The 48-year-old broke down and confessed to stealing more than $2.1 million from BAX Global (NZ), a freight forwarding company where he worked.
"I'm guilty," he told investigators. "I've committed fraud for 10 years."
He said his family didn't know about his offending.
Smart appeared in the North Shore District Court yesterday and was jailed for four years.
He had earlier pleaded guilty to two charges of dishonestly using documents and two of using documents with intent to defraud.
The charges detailed 552 dishonest transactions.
Smart worked for BAX Global for 15 years in various finance roles. The company is in the process of merging with Schenker New Zealand.
He stole $2.1 million over nine years from December 1996.
He also stole almost $80,000 worth of travel for himself, family and friends by dishonestly using company travel cards.
Smart's five-bedroom, four-bathroom Torbay home is for sale at $850,000. It is described on a real estate website as "irresistible luxury" and features "customised lighting, underfloor heating and top-quality fittings throughout".
His two Browns Bay properties are worth about $829,000 combined.
BAX Global has a legal claim on the properties and Smart's beach house at Omaha in an attempt to recover the stolen money.
Smart's crimes were uncovered when a new financial controller noticed discrepancies while reviewing an Air NZ travel card invoice. Smart confessed to dishonestly booking the travel between 1999 and 2005 and paid back the money.
He was fired in February 2006 for serious misconduct.
He told his employers there were no other "irregularities".
However, last April more discrepancies were uncovered involving company cheques and BAX Global contacted the Serious Fraud Office.
Smart's credit card statements showed cash withdrawals totalling $1.5 million over the period of offending. Some of this was used to pay off credit card balances or deposited into his ASB Bank accounts. The remainder is unaccounted for. He also gave cheques totalling $8750 to friends, claiming them to be BAX Global sponsorship for sports trips.
Sentencing Smart yesterday, Judge Barbara Morris said: "These funds were used to finance high living by you and your family. What makes these offences more serious was an alarming breach of trust from somebody high up in the company."
She said she took into account his admission of guilt, his remorse, his lack of previous convictions, his contribution to the community and his co-operation "to make good the loss".
$1.2 million remains unpaid.
