Tax fraudster avoids prison sentence after severe inmate beating causes brain damage

Blair Pitcaithly was sentenced in the Auckland District Court earlier this year. Photo / NZME

A judge has described a prison bashing that left an inmate unable to remember his family as a "silver lining".

Blair James Pitcaithly was sentenced to intensive supervision and community detention earlier this year on a raft of dishonesty charges including attempting to claim over $100,000 from the Small Business Cashflow Loan Scheme, which provided cash relief to businesses affected by Covid-19.

However, Pitcaithly avoided a term of imprisonment because while remanded in custody to await sentencing he was beaten so badly by another inmate he lost three years of memory, can no longer remember his parents, brother or son, still suffers from short-term memory loss and had to learn to walk again.

In sentencing at the Auckland District Court earlier this year Judge Mary-Beth Sharp noted that she had initially told Pitcaithly he would be receiving a "stern sentence of imprisonment".

However, due to his brain injuries while in the care of the State she said he was entitled to a significant discount in conjunction with his guilty pleas.

"Whilst his brain injury is severe and was an appalling occurrence given that the State has a duty to keep its prison inmates safe, it may have had a slight silver lining in that it may just have arrested Mr Pitcaithly's criminal tendencies and allowed, if not required, him to finally and forever address his addictions," Judge Sharp said.

Pitcaithly began offending in 2002 with minor dishonesty offences that escalated significantly during the past two decades.

"His fraudulent and dishonest offending driven by a gambling addiction and drug and alcohol addictions, have really in the past made him a scourge.

"He has certainly caused great harm to many, many people during his life," Judge Sharp said.

The Small Business Cashflow Loan Scheme from which Pitcaithly fraudulently obtained more than $20,000, was rolled out on a "high trust" model to ensure small business owners who were in financial distress because of Covid-19 could access funds quickly.

According to Inland Revenue's website, business owners with fewer that 50 staff were eligible to receive a maximum loan of $10,000 plus $1800 per full-time employee, interest free if the loan was paid back within two years.

Pitcaithly applied to receive more than $100,000 from the fund but only $20,000 was paid out to him before he was caught.

Among his other charges were the theft of a $50,000 boat and a Toyota Hilux stolen from Hirepool, as well as possession of methamphetamine.

Judge Sharp sentenced Pitcaithly to six months community detention and one year intensive supervision which included a curfew.

"Mr Pitcaithly is completely unable to make any reparation and there are a number of people and organisations seriously out of pocket, including the Commissioner of Inland Revenue which means that all of New Zealand taxpayers suffer, in fact," she said.

Judge Sharp noted that Pitcaithly had been undergoing counselling for his various addictions and was seeing progress in managing them.

"Clearly, Mr Pitcaithly offended as a result of his addictions and the need to obtain money to feed them.

"However, he appears to be clean from gambling since his offending and has not touched any alcohol or drugs for over two years and six months.

"All in all, Mr Pitcaithly is doing excellently, especially given the severity of his brain injury which has caused a number of very serious permanent effects."