Check work history, police warn

Police and private investigators are warning businesses to thoroughly check the background of job candidates after a Northland council hired an executive who had been charged with a six-figure fraud.

The woman, who has permanent name suppression, resigned from her corporate role, changed her name and was then hired by the Far North District Council.

When asked by the council if she had any criminal convictions, the woman replied no - which was true at the time.

But she failed to disclose that she was facing five fraud-related charges totalling $111,634.26.

Shortly after being charged, she repaid the stolen money and pleaded guilty at her first appearance at the Auckland District Court in June 2007.

A month later she was sentenced to 300 hours' community service by Judge Roderick Joyce, QC.

"Her offending constituted serious and repeated breaches of trust owed by her to her employer. The breaches were committed by somebody whose position was so senior as to make it easy for the breaches to occur," Judge Joyce said.

But after starting her new council job, the woman did not disclose her convictions and the offending came to light only after an anonymous allegation was made.

She has since left the council.

Far North District Council chief executive Colin Dale was unable to answer Weekend Herald questions because of privacy legislation covering employment.

Detective Marty Laagland, of the Auckland fraud squad, said police investigate several cases where companies are unaware of active charges against new appointments. In two recent cases, the staff member went on to steal from the new work place.

"In both these cases it appeared that the company wasn't made aware of, or didn't ask the employee, at the time of recruiting them, whether there was any relevant information they needed to be aware of that could affect their employment," Mr Laagland said.

"As a result, the new employee had not breached any employment conditions, nor lied during their application process, and could not be dismissed by their new employer."

Private investigator Danny Toreson, of Paragon New Zealand, said white-collar crime was increasing during the recession.

While previous convictions for prospective employees are easy to find, Mr Toreson said further background checks were needed to verify why someone left their previous jobs.

"Everything can be checked, you just need to ask the right questions. We look for the unspoken nuances in a reference check, to read between the lines and dig around," said Mr Toreson.

"Fraud is definitely on the rise with unemployment and so are embellishments on a CV. It's scary how senior some of these people can get."

Barrister Mark Ryan, an expert in employment law, said job hunters should always disclose convictions, and pending charges that were relevant. Trust and confidence underpinned every professional relationship but employers needed to ask the right questions.