CHB fraudster appeals 'harsh' prison sentence

21st October 2009

Disgraced Waipawa accountant Warren Pickett has appealed his prison sentence.

Counsel Jonathan Krebs, appearing on behalf of Pickett, 64, who is serving a five-year prison sentence, told the High Court at Napier that the sentence imposed by Judge Bridget Mackintosh on May 29 was "harsh".

Last August, Pickett called the Serious Fraud Office and admitted stealing from Waipawa Finance and Waipawa Holdings to cover losses accumulated since the 1980s.

He was sole director and principal shareholder of the two companies, the liquidation of which had been the first indication many investors had of their losses.

He admitted eight charges, including three of misappropriating investors' funds totalling about $3.7 million.

Mr Krebs said Pickett's offending had arisen from a "bad business decision" which he had tried to patch up.

He had not used the money to fund a "lavish lifestyle", although he accepted about $475,000 of stolen funds was directed towards his own personal benefit.

Mr Krebs said the minimum non-parole period of three years and four months, or two-thirds of his sentence, was excessive when compared to other cases.

He cited the case of convicted fraudster Michael Swann who, together with Kerry Harford, defrauded the Otago District Health Board of $16.9 million.

In that case he received a minimum non-parole period of four-and-a-half years, or half of his sentence, for offending which had "significant aggravating factors", including the use of money to fund a lavish lifestyle.

Mr Krebs said Pickett had a heart condition and the sentence was "crushing". He asked for the non-parole period to be reduced to half of Pickett's sentence.

Serious Fraud Office Prosecutor Brent Stanaway said the sentence was "entirely sustainable". Pickett's offending was an "extraordinary breach of trust". He propped up his two failing companies because it was essential in maintaining his position in the community.

A non-parole period of two-thirds was common for high-end fraud.

Justice John Wild said he was not impressed by Mr Krebs's submission that Pickett's sentence was excessive when compared to that imposed on Swann.

He called Swann "lucky indeed" in his sentence, and said there was a perception among New Zealanders that the courts were soft on white-collar crime.

He reserved his decision.