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Poker-addicted Indian-engineer jailed over $1-million scam
A 27-year-old, Indian-origin engineer has been sentenced to two years and two months in prison for what is reported to be one of the largest public sector thefts on record in New Zealand. Shyamal Sushil Shah developed a gambling addiction which began at SkyCity Casino and escalated into him participating in underground poker rings, eventually leading him to file 40 fake invoices out of desperation to repay debts, fearing for his safety from borrowers, according to the New Zealand Herald.
Shyamal Sushil Shah pleaded guilty to a representative charge of obtaining by deception at Auckland District Court.
Auckland District Court Judge Kate Davenport on Wednesday rejected his applications for home detention and bail during the appeal, describing his actions as a "significant breach of trust", according to the New Zealand Heral.
The scheme, described by the judge as one of the largest public sector thefts in New Zealand, involved Shah creating fake invoices for non-existent subcontractors.
Shah, a water network engineer with Auckland Council's Watercare, submitted fraudulent invoices under the names "Gardener Construction" and "Ben Gardener", directing payments to his own bank account. Contractors, unaware of the deception, paid these invoices believing them to be for genuine work conducted by subcontractors, which led to inflated expenses borne by the Watercare, according to the New Zealand Herald report, citing court documents.
His lawyer, David Jones KC, acknowledged the companies were "bogus".
"The fraudulent costs were subsequently included in the contractor's total project cost. Consequently, the defendant's (Sushil Shah) fraud increased total project costs, which the victim (Auckland Council) ultimately paid," the newspaper reported.
According to the report, the engineer filed 40 bogus invoices worth $1,039,146 (approximately Rs 8.67 crore) before his arrest in November.
The defendant has not repaid any money yet but told the court he plans to return about half in the coming months using his KiwiSaver, a loan from his parents, and an advance from his new employer.
KiwiSaver is a voluntary retirement savings scheme in New Zealand, allowing access under certain conditions like retirement, first-home purchase, or financial hardship.
According to the NZ Herald, Shah's gambling habit began at SkyCity Casino and worsened after he became involved with an illegal poker ring.
His lawyer told the court that Shah resorted to fraud under pressure to repay debts he was threatened over. "Once you're involved, it's very hard to escape," the defence lawyer said.
After burning through his savings, he turned to crime out of desperation, the defence suggested, according to the New Zealand Herald.
Judge Davenport settled on an end sentence of two years and two months' imprisonment, after allowing 55% in discounts for his guilty plea, previous good character, remorse, rehabilitation efforts and his offer to pay the money back, the New Zealand Herald reported.
Poker-addicted Indian-engineer jailed over $1-million scam
A 27-year-old, Indian-origin engineer has been sentenced to two years and two months in prison for what is reported to be one of the largest public sector thefts on record in New Zealand. Shyamal Sushil Shah developed a gambling addiction which began at SkyCity Casino and escalated into him participating in underground poker rings, eventually leading him to file 40 fake invoices out of desperation to repay debts, fearing for his safety from borrowers, according to the New Zealand Herald.
Shyamal Sushil Shah pleaded guilty to a representative charge of obtaining by deception at Auckland District Court.
Auckland District Court Judge Kate Davenport on Wednesday rejected his applications for home detention and bail during the appeal, describing his actions as a "significant breach of trust", according to the New Zealand Heral.
The scheme, described by the judge as one of the largest public sector thefts in New Zealand, involved Shah creating fake invoices for non-existent subcontractors.
Shah, a water network engineer with Auckland Council's Watercare, submitted fraudulent invoices under the names "Gardener Construction" and "Ben Gardener", directing payments to his own bank account. Contractors, unaware of the deception, paid these invoices believing them to be for genuine work conducted by subcontractors, which led to inflated expenses borne by the Watercare, according to the New Zealand Herald report, citing court documents.
His lawyer, David Jones KC, acknowledged the companies were "bogus".
"The fraudulent costs were subsequently included in the contractor's total project cost. Consequently, the defendant's (Sushil Shah) fraud increased total project costs, which the victim (Auckland Council) ultimately paid," the newspaper reported.
According to the report, the engineer filed 40 bogus invoices worth $1,039,146 (approximately Rs 8.67 crore) before his arrest in November.
The defendant has not repaid any money yet but told the court he plans to return about half in the coming months using his KiwiSaver, a loan from his parents, and an advance from his new employer.
KiwiSaver is a voluntary retirement savings scheme in New Zealand, allowing access under certain conditions like retirement, first-home purchase, or financial hardship.
According to the NZ Herald, Shah's gambling habit began at SkyCity Casino and worsened after he became involved with an illegal poker ring.
His lawyer told the court that Shah resorted to fraud under pressure to repay debts he was threatened over. "Once you're involved, it's very hard to escape," the defence lawyer said.
After burning through his savings, he turned to crime out of desperation, the defence suggested, according to the New Zealand Herald.
Judge Davenport settled on an end sentence of two years and two months' imprisonment, after allowing 55% in discounts for his guilty plea, previous good character, remorse, rehabilitation efforts and his offer to pay the money back, the New Zealand Herald reported.
