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Home / New Zealand

Christchurch earthquake scammer steals money while on home detention in Rotorua

Kelly Makiha
By Kelly Makiha
Multimedia Journalist·Rotorua Daily Post·
29 Jul, 2018 07:00 PM4 mins to read

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Graham Daniel Lilley, 39, has appeared in the Rotorua District Court. Photo / File

Graham Daniel Lilley, 39, has appeared in the Rotorua District Court. Photo / File

A man convicted of scamming Christchurch earthquake victims has been sent to jail after ripping off a finance company while serving home detention in Rotorua.

Graham Daniel Lilley, 39, has appeared in the Rotorua District Court and pleaded guilty to a charge of obtaining by deception.

The Rotorua Daily Post can reveal he is the same man who was convicted in 2016 of defrauding residents after the deadly February 2011 earthquake by telling them they needed drainage work done which would be reimbursed by the Earthquake Commission.

He was sentenced to 10 months' home detention and 16 months of supervision on 21 charges of obtaining by deception relating to work valued at $220,000.

Lilley was also sentenced in September last year to 12 months' home detention on another charge of obtaining by deception and was carrying out his sentence at a house in Hamurana, near Rotorua.

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A police summary of facts released to the Rotorua Daily Post said Lilley made a loan application on the Turners Finance website in someone else's name on January 31 this year. The details included bank accounts and fraudulent signatures.

He applied for a loan of $19,722.15 in the other person's name and used the money to buy a Holden Commodore vehicle valued at $16,100.

The summary said a repossession agent went to Lilley's Hamurana house and repossessed the vehicle when it was reported the loan was deceptively obtained.

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Lilley told police he knew he didn't have permission from the person but he thought the person would be fine with it.

Lilley was sentenced in the Rotorua District Court on July 18 by Judge Tony Snell.

Sentencing notes, released to the Rotorua Daily Post, show Judge Snell sentenced Lilley to six months' prison on the latest charge. He also cancelled his remaining three months' home detention and replaced it with a further six months' imprisonment to be served cumulatively.

In sentencing, Judge Snell said he noted Lilley's criminal record had "a number of dishonesty matters".

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Upon release, he would need to abide by release conditions for six months to do counselling, training and programmes to address his offending as determined by his parole officer, Judge Snell said.

It was reported in May 2016 that Lilley ran a company called Alligator Drainage that had done drainage work for 18 victims, many of them elderly. He wrongly told them he had an arrangement through the Earthquake Commission and they would be reimbursed their payment for the work.

At the time Commerce Commission's consumer investigations manager Stuart Wallace welcomed the end of the fraud case.

"The commission has been prioritising complaints about potentially illegal behaviour related to the Christchurch rebuild and working with other agencies where appropriate," he said in 2016.

"We are pleased this case has finally been resolved and Mr Lilley has admitted the offending. Hopefully, today's sentencing provides some closure for the affected landowners who have been left out of pocket and suffered the stress of his offending."

Of the initial total loss of $220,000 borne by the landowners in this case, just over $100,000 was repaid to complainants through the Earthquake Commission retrospectively approving some claims and reparation payments by Lilley to other consumers, it was reported at the time.

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Alligator Drainage was placed in liquidation in March 2014, owing creditors just over $470,000.

Not long after his conviction in 2016, the Plumbers, Gasfitters and Drainlayers Board issued a warning to Wellington residents to "exercise caution" relating to any work Lilley was carrying out.

Board chief executive Martin Sawyers was reported as saying at the time it had receive 40 complaints from people in the region about Lilley's activities.

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