Waikato man Jarryd Delroy Hector gets home detention for $53K Covid wage subsidy fraud

Jarryd Delroy Hector received $53,400 in Covid-19 wage subsidy payments he wasn't entitled to. Photo / 123RF

A Waikato man has been sentenced to home detention for fraudulently receiving $53,400 in Covid-19 wage subsidy payments.

Jarryd Delroy Hector of Te Kauwhata was found to have falsified GST and income tax returns – grossly understating income and overstating expenses – to receive money he wasn’t entitled to.

Hector tried to get a total of $196,453.36 in what Inland Revenue described as repetitive and premeditated offending.

The false claims were used to get money from the Resurgence Support Payment (RSP), Covid Support Payment (CSP) and Small Business Cashflow Scheme loan (SBCS).

The three Covid-relief schemes were introduced under urgency between April 2020 and February 2022 and used a high trust model to ensure those adversely affected by the pandemic could access funds to support their businesses.

Hector was a self-employed contractor in the property management sector until February 2021. After that, he started working for salary and wages and didn’t have his own business.

Hector applied to Inland Revenue in December 2021 for four RSPs, totalling $13,900. Each application he said he had a viable and ongoing business which had operated for at least a month and had a minimum 30% decline in revenue. Hector said he would use the grant for business expenses only.

Between February and March 2022, Hector applied for three CSPs of $4,400 each and confirmed he met all the criteria for receiving the payments.

He also applied for two SBCS loans, confirmed he met the criteria and would only use the money for core operating costs.

The IRD started auditing Hector in 2022 after he told them during interviews he couldn’t remember how he had used the Covid relief money and that he didn’t keep records.

An analysis of Hector’s bank accounts showed he invented his income and expenses. Both income and expenses were overstated, causing significant tax discrepancies.

Hector appeared in the Manukau District Court on October 21 and was sentenced on 16 charges. He will serve 11 months home detention and do 150 hours community service.

The $53,400 Hector received has not been repaid.