BUSTED: A Masterton pokie venue has been linked to an alleged multi-million dollar gaming fraud.
BUSTED: A Masterton pokie venue has been linked to an alleged multi-million dollar gaming fraud.
A Masterton pokie venue has been linked to an alleged multi-million dollar gaming fraud believed to be the biggest ever of its kind in New Zealand.
Maarten Quivooy, Department of Internal Affairs (DIA) regulatory services general manager, said related charges were laid against four men in Wellington District Court yesterday,in what is "the largest criminal case" involving pokies outside of a casino.
The Serious Fraud Office (SFO) was prosecuting the charges, he said, and the four accused include former chairman of Harness Racing New Zealand, Patrick O'Brien, 80, of Blenheim, his son Mike O'Brien, 55, also of Blenheim, Nelson hospitality consultant Paul Max, 58, and a former gaming inspector, whose name was suppressed.
The men did not plead when they appeared before a registrar yesterday. It is understood they were facing 30 charges between them and will reappear in court on March 3.
The O'Briens and Max have reportedly said they will defend the charges.
Obtaining by deception carries a maximum penalty of seven years in jail.
A Wellington newspaper reported the alleged fraud involved up to $30 million and a Masterton venue was one of 20 pubs and properties stretching from Blenheim to Wellington to the Hawke's Bay that were investigated during the course of Operation Chestnut.
The joint operation involved the DIA, the SFO and the Organised and Financial Crime Agency of New Zealand (OFCANZ).
The alleged fraud was uncovered during the course of the two-year investigation, Mr Quivooy said.
"While we cannot talk about the detail of the allegations while they are before the court, the charge of obtaining by deception is a serious offence," Mr Quivooy said.
"Operation Chestnut has been a significant investigation in the Class 4 sector and we've welcomed the opportunity to work in partnership with the SFO and OFCANZ.
"The criminal charges are just one aspect of the operation and we're working hard to use what we've learned during the investigation to lift compliance in the sector," he said.
