New Zealand

Details

  • Service: Advisory, Forensic
  • Type: Business and industry issue
  • Date: 4/12/2012

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Forensics

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Fraud barometer - Edition 7 

Findings for the six months to June 2012

 

  • Value of large fraud cases totalled $1.7 billion – a record for a period (compared to $279.7 million last period).

  • There were 33 cases in total (compared to 24 cases in the last period).

  • There were four ‘super-frauds’: frauds greater than $3 million (compared to five super-frauds in the last period).

  • The record total of fraud for this period is attributable to the Serious Fraud Office (SFO) charging five individuals in relation to South Canterbury Finance Ltd (SCF). The alleged total fraud in this case is $1.7 billion, which is New Zealand’s largest fraud case ever. The total amount of fraud for this period, excluding SCF, was $30.8 million.
Fraud barometer 2012
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Summary

 

Compared with the same Fraud Barometer period last year (covering the six months to June 2011), our latest analysis of media reports shows that the number of large fraud cases going before the New Zealand courts increased from 29 to 33 cases.

 

The latest period shows the second highest number of large fraud cases going before the courts in any of the periods reviewed.


The aggregate value of large frauds for the comparable six month period to June 2011 shows frauds increasing from $79.8 million to just over $1.7 billion. This is a substantial increase which can be attributed to charges being laid in the SCF case totalling $1.7 billion.

 

If the SCF case is removed from the analysis, the total amount of fraud in the current period is $30.8 million. This would be the third lowest total of fraud going before the courts in any of the periods reviewed.

 

In the five months since the end of the current period findings, we have continued to see a number of large fraud cases brought before the courts.

 

The range of frauds in the last five months has been interesting. There has been a natural gas retailer charged with under reporting the amount of gas it supplied, a fishing company accused of under reporting the amount of fish it caught and an options trader accused of using investor funds for personal use.

 

We have also continued to see employee frauds motivated by gambling addictions and greed, as well as tax and benefit frauds.

 
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