A teacher at Auckland Grammar School who lost hundreds of thousands of dollars of other people's money in a failed business venture has been jailed for nine months under insolvency legislation.
A jury found Tuhe Piho guilty on two charges of engaging in the control or management of a business whilean undischarged bankrupt.
Piho, 44, was declared bankrupt in March 1999.
Passing sentence at the High Court in Auckland, Justice Judith Potter said Piho was well aware of the implications of being a bankrupt.
But he persuaded seven families to mortgage their homes for a total of about $350,000 for a property development business in which he and his brother Aporo Piho were involved.
None of the victims, who were family members, was told that Piho was a bankrupt.
Justice Potter said that virtually none of the money had been repaid, and none of the work Piho said would be provided by him, his brother or their company had been performed.
The judge said that the victim-impact reports made distressing reading.
The victims faced the prospect of meeting mortgage commitments and the stress that they might be unable to do so, placing their homes at risk.
Piho was granted leave to apply for home detention, but the judge said the prison sentence would not be deferred.
