A company director has been sentenced to nine months home detention and ordered to pay a reparation of $83,563.65 by the Christchurch District Court for falsifying records and dishonestly incurring debts.
Colin Fitzgibbon, director of ACK Contractors Limited, entered into an invoice purchasing contract in 2018 with Canterbury Finance Limited. That company trading as FIFO Capital.
ACK Contractors Limited then held a contract to undertake work on the Christchurch Northern Corridor Alliance project at the beginning of 2020.
The roading project involved construction of a new four-lane motorway from south of the Waimakariri River, connecting to Queen Elizabeth II Drive and Cranford Street in Christchurch.
ACK Contractors Limited was also sub-contracted to HEB Construction Limited, undertaking road maintenance for the Christchurch City Council in early 2020.
The Ministry of Business, Innovation and Employment (MBIE) said Fitzgibbon provided fraudulent invoices valued at $668,392.95 to FIFO Capital between January and March 2020.
“As a result, ACK Contractors Limited was advanced $535,665.05.”
However, on April 28, 2020, receivers were appointed for ACK Contractors Limited.
“During the receivership, invoicing issues were detected when the receivers sought to recover the purported debts from the CNC Alliance and HEB Construction Limited,” MBIE said.
“Both companies advised the receivers that the invoices were fraudulent, and no monies were owed to ACK Contractors Limited.”
MBIE national manager of criminal proceeds, integrity and enforcement Vanessa Cook said this was moderately sophisticated offending where Fitzgibbon generated invoices based on the company’s forecasted data for the month ahead.
“He sold the invoices to FIFO Capital so that his company could get cash faster than it would have received if it had waited for monthly payments made by the client companies,” said Cook.
“The offending was pre-meditated. While Mr Fitzgibbon intended to complete the work, he was aware that there was a risk of causing loss.”
At the sentencing, Judge GM Lynch took into account Fitzgibbon’s “remorse and preparedness to participate in restorative justice, his previous good character, steps he had taken to ensure reparation was paid including selling his family home, his cooperation during the investigation and early plea”, MBIE added.
