Sports club benefactor stole 'donations' from his work

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TAURANGA - A former Mt Maunganui salesman defrauded his employer of more than $200,000 - most of which he donated to the Mt Maunganui Sports Club.

The Serious Fraud Office told the Tauranga District Court that the salesman, 41-year-old Gareth Smith, was president of the club at the time.

Smith had forged his employer's signature on 11 cheques totalling $198,187.50 and has since pleaded guilty to fraud charges.

Prosecutor Kerry White said Smith committed the offences while employed by Royal Palm Beach and its parent company, Hawridge Developments.

Smith, who did not have cheque-signing authority, forged company director Greg Clark's signature on the cheques, which were banked through the sports club.

Smith took it on himself to raise funds for the club, Kerry White said.

Between January 1998 and March 1999 he signed 10 cheques.

The club received $137,687. Smith told members the money had come from a charitable trust in the Waikato.

It included a $100,000 cheque in December 1998 from which Smith claimed a finder's fee of $15,000 for himself.

Smith also obtained $60,500, and gambled the money on horses, Kerry White said. Smith was interviewed by the fraud office in July and arrested in November.

He had been cooperative.

Kerry White said the total outstanding was $202,812.50.

Defence lawyer Paul Mabey said eight fraud charges involving tax invoices for management fees had been withdrawn.

Judge Ian Thomas convicted Smith and remanded him on bail until February 29.

Outside the court, the Mt Maunganui Sports Club president, Pat Jones, said the club had done its best to keep members fully informed throughout the process.

The club had accepted the money in good faith and used it to extend its squash facilities.

Mr Jones said the club had raised a mortgage to pay off all its debts and, as far as he knew, it did not owe any money.

"Now that this has come out we will now work through any remaining issues with club members."

- NZPA