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Former Immigration Minister Tuariki Delamere says he was told an immigration scheme over which he faces fraud and forgery charges was most likely lawful but he didn't pay $80,000 to get a full legal opinion.
Under cross-examination from Crown prosecutor Simon Moore yesterday, the former New Zealand First
MP said in the High Court at Auckland that the legality of his scheme came up in conversations with his brother, an accountant, and businessman Waari Ward-Holmes.
"He [Mr Ward-Holmes] said he thought it sounded lawful but that he didn't feel qualified to give an unqualified answer," Delamere said.
"He said he discussed it with one of his lawyers and they came back and said that for the lawyers to give a full opinion they were happy to do so but that it could cost about $80,000."
Delamere, who became an immigration consultant after losing his seat in Parliament in 1999, said he did not pay the $80,000 and thus did not get a full legal opinion of the scheme.
Delamere faces 20 charges, including nine charges of using forged documents, seven of using a document with intent to defraud and four charges of using a document dishonestly.
The charges, brought by the Serious Fraud Office, allege that Delamere falsely told the Immigration Service that seven clients had each invested $1 million of their own money with a New Zealand company, qualifying them for residency under the business migration category.
The SFO alleges that Delamere's Chinese business partner, Yan Jiang, contributed the $1 million to New Zealand Golden Harvest, a company the pair jointly set up, and the money was used seven times for seven different applications in a "money-go-round" involving the bank account of a Hong Kong company, Harvest International.
Delamere said all information handed to the Immigration Service was genuine, legal and valid, and that his scheme was lawful.
He said yesterday that any serious checking of the documents would not have seen charges brought against him, and that he had been set up by Jiang, now his former partner.
Exchanges between Delamere and Mr Moore frequently became heated, with Mr Moore becoming frustrated at what he saw as Delamere's avoiding answering his questions directly.
Justice Patricia Courtney told Delamere that it was important that he listen to every question carefully and answer it.
He could elaborate on answers only after directly answering the question.
When Mr Moore suggested that his scheme was "smoke and mirrors", Delamere said, "The only smoke and mirrors scheme has been created by you and your colleagues".
The prosecutor also questioned Delamere about why some answers he gave the court about documents were different from those he gave to police and Serious Fraud Office staff.
Delamere said that during the interviews he had been given documents on the spot and expected to give answers. Subsequent research and evidence he heard had clarified events in his mind.
The trial continues today.
- NZPA
