The High Court confirmed 18 months’ imprisonment for Paul Alofa following a cheque kiting fraud perpetrated against ASB Bank.
Alofa has 38 convictions for dishonesty-related offences dating back to 1988. His recent conviction follows two kiting frauds in 2016. Kiting is the practice of drawing against uncleared deposits. Banks may allow depositors to draw against a percentage of the value of cheques deposited before they are cleared through the banking system. Alofa created the deposits by banking worthless cheques into newly-opened ASB bank accounts. The High Court was told Alofa created a series of bank accounts, using an alias in each instance. In January 2016 he opened an ASB account in the name of Diego McCarthy, banking into the account 25 cheques written on his closed ANZ cheque account in the name of Retzlaff Wichburger. Before the deposited cheques were dishonoured he withdrew a little over $25,500 from the McCarthy ASB account. The second cheque fraud concerned another ASB account opened by Alofa using the name Robert Tapu. With no credit in the account he drew a cheque in favour of Motor Trade Finance, attaching to the cheque a forged letter purporting to be from ASB guaranteeing payment.
Alofa said his sentence should be reduced because he had repaid ASB $8000. The trial judge did not believe payment had in fact been made. In the High Court, Justice Downs said it was for Alofa to prove payment. Alofa offered no evidence of having made payment, either at trial or on appeal.
Alofa v, Police – High Court (3.12.18)
19.017