31 October 2017

Fraud: Mehta v. R.

The Court of Appeal confirmed a sentence of two years jail for Vikram Mehta after conviction for fraud selling household and electronic goods from a ‘truck shop’ then not delivering.  Customers lost about $140,000.
The Court was told Mehta committed the fraud over a thirteen month period starting early 2013 operating as a mobile trader under the name Flexi Buy.  Between 300 and 360 customers were affected.  A total of nine customers ultimately received any goods, some only after they threatened to complain to the police, Fair Go, or the Commerce Commission.  Mehta personally signed up only two of the customers.   Sales staff dealt with the rest.  The court said Mehta lay at the heart of the offending.  He procured his sales staff to misrepresent delivery details to get customers signed up.  Customers were told delivery would be made before final payment was due.  After a five month holiday in India, Mehta arranged for a blanket deduction of $400 from each customer’s bank account: some owed less than this amount; others had already paid in full.
The sentencing judge said a deterrent sentence was needed to discourage mobile traders from ripping off vulnerable people, most on low incomes.  The Court of Appeal said there were no grounds to reduce the sentence or to replace jail with home detention.       
Mehta v. R. – Court of Appeal (31.10.17)

17.146