Operation Indigo pokie fraud: 23 charged over $3.2m grant scam

More than 20 people face 500-plus charges, accused of obtaining millions of dollars in grants through a pokie fraud.

A Department of Internal Affairs investigation has led to 23 people being charged with offending related to money laundering, receiving, and using forged documents, with the individuals appearing before the Auckland District Court today.

The investigation, which Internal Affairs claims to be its largest prosecution ever, looked at a network of community organisations that were allegedly dishonestly used to obtain gaming machine grant funds worth over $3 million.

Vicki Scott, the department’s director, gambling, said six charities and incorporated societies were probed as part of Operation Indigo.

“‘Operation Indigo’, probed a network of six charities and incorporated societies used to obtain $3.2 million of gambling grant funds for personal gain. It’s been a mammoth and complex investigation,” Scott said.

“The Gambling Act requires class 4 pokie machine operators give a minimum of 40% of profits back to the community.

More than 20 people face over 500 charges after an Internal Affairs pokie fraud investigation. Photo / Christine Cornege

“They do this by making grants to community organisations and charities.

“In this case, a large portion of the grants were obtained under the guise of salaries for what were essentially bogus employees.

“Indeed, a number of the charities appear to have been ‘sham’ not-for-profit organisations, set up for the sole purpose of obtaining funding.”

Scott said another feature of the alleged offending included defendants running a pokie venue which laundered grant funds through venue bank accounts.

These would allegedly repay gaming machine profits back to class 4 operators.

“We will continue to respond strongly to any attempts to undermine the important measures that ensure gambling profits go back into the community, not into individuals’ back pockets,” said Scott.

All defendants were granted name suppression until the next court date, on April 9.