McGahan admits he 'was foolish and naive'

Former Kiwis league captain Hugh McGahan might not have known the "full extent of the conspiracy" involving pokie profits he had become embroiled in, a judge said at his sentencing on fraud charges yesterday.

McGahan was ordered to complete 275 hours of community work by Judge Nicola Mathers to two charges of conspiracy to defraud and two charges of conspiracy to obtain benefit by deception.

He switched his pleas from not guilty to guilty after a sentence indication hearing last month.

Judge Mathers said McGahan might not "necessarily have been aware of the full extent of the conspiracy" and could have been "led astray" by former league player Brent Todd and his business partner Stanley Malik Wijeyaratne.

The pair masterminded the $2 million scam that involved an elaborate scheme of false invoices and accounts to defraud sports organisations out of hundreds of thousands of dollars from pokie proceeds.

McGahan signed invoices for services such as coaching and functions to the North Harbour Rugby Union that weren't legitimate. He also accepted commissions based on unlawful invoices that he had signed.

The stress upon him and his family had been enormous but it was now over so he could settle back into the community, Judge Mathers said.

"I am satisfied your offending has been brought home to you. I acknowledge you are remorseful," she said.

After an initial financial benefit he was now in a "parlous" financial situation.

The judge said while his offending was out of character the effects on Touch NZ had been considerable.

However, she said he was entitled to credit for the contribution he'd given the community through his "distinguished" sporting career and in other ways.

The Crown accepted he was less blameworthy than some of his co-accused who had already been sentenced.

McGahan's lawyer, Frank Godinet, said McGahan's "fall from grace" had been "cataclysmic" and that no amount of publicity he received at the peak of his sporting career was like the publicity he'd endured over the last few years.

Mr Godinet told the Auckland District Court when McGahan spoke with groups of young people he told them straight away of the mistakes he had made. He now needed to "rebuild his life".

After the sentencing he told reporters he had no one to blame for his actions but himself.

"I was naive and foolish. I trusted people who abused that trust and I accept that I broke the law."

He said he had no excuses for his actions and was ashamed to let his principles and standards fall to such a degree.

He accepted the publicity his case had attracted.

"As someone who has worked in the media and benefited from positive media attention over a number of years I understand that in my situation you must take the good for the bad."

McGahan has paid back $16,000 to the North Harbour Rugby Union but no reparation has been paid to Touch NZ.

McGahan said yesterday he couldn't comment on the issue because there was "a civil matter going on and I don't want to prejudice that".

Touch NZ chief executive Joe Sprangers said McGahan had claimed he was owed unpaid commission.

He told the Herald he wasn't sure how out of pocket his organisation was because he hadn't received a full summary from the Serious Fraud Office.