Pair cleared of bid to defraud Tainui

Two men accused of trying to defraud Tainui of $12 million were cleared of all charges today.

Former Tainui chief executive Craig John Beecroft, aged 29, and his close friend Blair Ainsworth Kirk, 30, faced two fraud charges each relating to the Waikato tribe's failed attempt to buy five central Hamilton buildings in 1998.

During the 13-week trial in the Auckland District Court, the Crown alleged that Kirk bought the buildings for $11.8 million and tried to sell them to Tainui for $24 million.

The transaction never went ahead, but the pair were accused of using Beecroft's position within the tribe to persuade Tainui to pay the inflated price.

However, the jury returned not guilty verdicts for both men after eight hours' deliberation.

Under questioning by defence counsel Paul Davison, QC, Jacinda McClennan, Garry Gotlieb and Maria Pecotic, many key Tainui witnesses admitted that Beecroft had told them the buildings were worth only $10 million to $12 million.

The defence maintained that despite his close relationship with Kirk, who worked as a mobile manager for Countrywide Bank, Beecroft did not know his friend was behind the company offering the buildings for sale and was simply following the tribe's instructions when putting together the deal.

After the verdicts were read out, Kirk ran from the courtroom while Beecroft, with his family and fiancee, broke down in tears.

Afterwards, Beecroft said the 2 1/2-year investigation had taken its toll on both men and he was greatly relieved at the outcome.

"There can't be anything worse than being accused of committing a crime that you didn't commit. This gives me a chance now to get on with my life."

Evidence at the trial showed that Tainui tribal leaders paid no attention to detail, threw away important faxes and disregarded information about the purchase price.

- STAFF REPORTERS