Fraudster jailed for 5-1/2 years

12.00pm

A fraudster who stole more than $1.9 million from the Ministry of Social Development was jailed today for 5-1/2 years.

Lisa Clement, 36, of Wainuiomata, appeared for sentencing in Wellington District Court before Judge Chris Tuohy.

On February 25 she pleaded guilty to four representative charges brought by the Serious Fraud Office of using documents -- ministry invoices -- with intent to defraud.

The invoices were made out to four business entities Clement had created.

She also pleaded guilty to 14 charges brought by Work and Income of making false statements to receive benefits, one of which related to her not telling the department she was working for it full time, from November 2000.

Judge Tuohy sentenced Clement to five years on Serious Fraud Office charges and six months on the benefit fraud charges, to be served cumulatively.

Clement received $41,000 worth of benefits from Work and Income while working for the department.

The court was told today that $240,000 of the $1.9 million stolen from the Ministry of Social Development had been paid back, but Judge Tuohy said it was pointless ordering reparation as there was little chance Clement would pay the rest.

Defence counsel Louise Sziranyi told the judge before sentencing that Clement, a mother of two, had a husband who suffered from bipolar illness.

Clement had pleaded guilty early and had made a full admission of the charges.

However, Judge Tuohy said Clement had been less than helpful in unravelling the process of her fraud.

He said her conduct was premeditated and cunning.

Clement had spent most of the money on a lavish lifestyle that included international travel, jewellery, cars and James Bond memorabilia.

"Given the large sums spent... it seems unlikely there will be any other substantial recovery.

"The most obvious victims are the taxpayers and people of New Zealand and your colleagues."

The judge said Clement's former colleagues would feel betrayed by her actions.

There had been no apology to colleagues from Clement and no real indication of remorse, the judge said.

"A lengthy term of imprisonment must be imposed."

Judge Tuohy began with a sentencing starting point of seven years -- the maximum sentence for the Serious Fraud Office charges.

The ministry uncovered the fraud in August last year. Clement was immediately dismissed and a Serious Fraud Office investigation launched.

She was recruited for her executive assistant position by employment agency Wheeler Campbell.

Clement lied on application forms, adding a middle name of Maree and falsifying her birth date.

It was later discovered she had previous criminal convictions for dishonesty offences between 1987 and 1992, and had also failed to disclose she had been bankrupted twice.

Clement showed no emotion when she appeared in court today.

ACT MP Muriel Newman said in a statement that she was asking the auditor-general to investigate "flaws" in Work and Income's audit procedures.

She had written to Social Services Minister Steve Maharey because the fraud raised serious concerns over his department's financial management and employment procedures.

However, Mr Maharey had not outlined how he would stop such a fraud happening again.

That left her with no choice but to refer the matter to the auditor-general, Dr Newman said.

- NZPA