To those around him, young professional Shyamal Sushil Shah’s future looked bright.
He was in a trusted position with Auckland Council’s Watercare, where he helped oversee projects as a water network engineer, he was saving up for a house and he was planning a move to Australia to advance his career even further.
But no one realised until it was too late that Shah was a gambling addict who feared for his safety after incurring a huge debt with one of Auckland’s underground, illegal poker houses. He was also - as a result of that fear, he claimed - a prolific fraudster.
“There’s been a significant breach of trust,” Auckland District Court Judge Kate Davenport said today as she jailed the 27-year-old for what is believed to be one of the largest public sector thefts on record - a 17-month scheme in which he managed to swindle roughly $1 million from his employer.
The judge rejected Shah’s request for home detention. She also rejected his request to remain on bail while appealing her sentencing decision.
“The ramifications of what you’ve done stretch beyond [humiliation to Watercare],” the judge said, explaining that Shah’s work colleagues described being “hurt, betrayed and humiliated” and wondering if their own jobs were at risk during the internal investigation that followed.
“It isn’t too much to say the betrayal by you has left a lasting scar...”
Watercare manages the Auckland region’s drinking water and wastewater services.
Court documents state Shah was tasked with working on multiple projects in which he created fake invoices under the name “Gardener Construction” or “Ben Gardener” but with his own bank account number. His lawyer acknowledged the companies were “bogus”.
“The contractors paid these invoices believing them to be for genuine work conducted by sub-contractors,” states the summary of facts agreed to by Shah when he pleaded guilty to one count of obtaining by deception.
“The fraudulent costs were subsequently included in the contractor’s total project cost. Consequently, the defendant’s fraud increased total project costs, which the victim [Auckland Council] ultimately paid.”
In all, Shah was able to successfully file 40 fake invoices, resulting in $1,039,146 in payments to his account. He was arrested in November, during what was already planned to be his last week at Watercare before moving overseas.
The defendant hasn’t yet paid back any of the money but came to court today with a promise that he would, as well as a plan for returning roughly half over the next few months thanks to his Kiwisaver, an advance from his new employer and a massive loan from his parents.
“I imagine, as any parent would be, they’re horrified and distressed,” the judge said, describing the parents’ willingness to suffer their own financial strain for their son as “an amazing gesture”.
Shah faced up to seven years’ imprisonment for the single representative charge of obtaining by deception.
Defence lawyer David Jones KC noted that his client has logged 267 hours of charity work since his arrest and has worked three new jobs in an effort to pay back the money. It’s a testament to his talent that he’s still “very much sought after” and supported by his current employer despite fears that having Shah on board will reduce opportunities for Watercare contracts, Jones said.
The court was told Shah’s gambling addiction started at SkyCity Casinocoercion then escalated after three men approached him and invited him to a residence where private games were held.
Jones described it as a racket where addicts are targeted and given a significant line of credit before payment is demanded - often through coercion. In Shah’s case, the court was told, the defendant was shown photos of another man who had been violently assaulted after they didn’t pay.
“Once you’re in, it’s a very difficult place to get out of,” Jones said, explaining that his client had to keep playing to buy more time.
After burning through his savings, he turned to crime out of desperation, the defence suggested.
Jones described his client as “extremely pro-social normally” and suggested he has now done “everything he can” to address his addiction.
He asked for an end sentence of under two years, allowing the judge to consider home detention. Police prosecutor Matthew Hall opposed a non-custodial sentence, noting that it was far from a one-off, spur-of-the-moment offence.
He pointed to a victim impact statement from Nigel Toms, Watercare’s general manager of risk, quality and assurance, who described the fraud as “sophisticated with complex backstories”, including fake email chains.
Judge Davenport settled on an end sentence of two years and two months’ imprisonment, after allowing 55% in discounts for his guilty plea, previous good character, remorse, rehabilitation efforts and his offer to pay the money back.
Deterrence and denunciation are important, she said, ordering also that the reparation be paid as promised.
Craig Kapitan is an Auckland-based journalist covering courts and justice. He joined the Herald in 2021 and has reported on courts since 2002 in three newsrooms in the US and New Zealand.
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