Guilty plea, but victims still fighting Green Acres for money

Keith Lapham. Photo / Supplied

Former Green Acres master franchise holder Keith Lapham pleaded guilty yesterday to obtaining $3.525 million by deception, as his victims vowed to keep fighting for the money they believe they are owed.

Ketan Trivedi, a victim of the Green Acres franchise scam that defrauded new migrants of millions of dollars, says their fight will continue.

Lapham, a former contractor from Fiji, pleaded guilty in the Auckland District Court yesterday to three charges relating to the scam, in which almost 200 people paid him for non-existent Green Acres ironing franchises and were promised $650 a week.

Another charge relates to people who gave him money to start their own operations. The amount allegedly obtained was $96,000.

The third charge is one of obtaining $244,800 and relates to misrepresentations he made to Green Acres about how many sub-franchises he had granted.

Lapham's lawyer, Peter Davey, told the court the amount of money his client took is in dispute.

The period of the scam, which the Serious Fraud Office said was between March and December 2007, is also in dispute and will be the subject of a hearing.

Lapham started as an ironing franchisee and then bought the master franchise for the Auckland area.

He was recognised as one of Green Acres' most successful operators, shortly before the fraud allegations were made.

Green Acres first became aware of problems when a group of unauthorised franchisees, many of them immigrants from India and China, contacted the firm with concerns.

Mr Trivedi said he was pleased that the criminal phase was over but a civil case in the High Court at Auckland was in its early stages.

He is among 62 people who have filed a High Court claim against Green Acres totalling $8.1 million.

Green Acres is defending the claim and has previously said the $8.1 million figure is inflated.

Mr Trivedi said many of the victims were struggling after losing their savings and having to pay back bank loans, usually between $15,000 and $20,000.

"Even if he does go to jail, the families are still struggling and they are not going to get their money back," he said.

Many of the victims could not rely on relatives for help because their families live overseas.

"They are struggling alone," Mr Trivedi said.

Lapham has been remanded on bail until the disputed facts hearing. His bail conditions were suppressed.

A forensic accountant from the SFO will give evidence at the hearing in November.

Green Acres management said in a statement yesterday that the company was pleased Lapham pleaded guilty.

"Everyone associated with Green Acres has worked extremely hard over the past two years to repair the damage done to the business and the firm's reputation as a result of Keith Lapham's actions," said spokesman Andrew Chisholm.