Te Kuiti accounting firm Smith Mitchell had a freezing order imposed over assets owned by former employee Sharon Bradley after allegations she stole client funds in excess of one million dollars. Frozen by High Court order are her personal and business bank accounts and a property on Hanning Road, Pirongia, with a rateable value of $950,000.
The High Court was told Ms Bradley is suspected of a seven year fraud perpetrated at Smith Mitchell before her 2018 resignation. She left to establish her own business, a quilting/craft workshop trading as Waitomo Sewworms.
Smith Mitchell provides back-office accounting services for clients. Clients give Smith Mitchell authority to operate their business bank accounts. Invoices sent into Smith Mitchell for payment are processed on the client’s behalf. It is alleged Ms Bradley stole client money; by creating fictitious invoices actioned with payment out of client accounts into accounts she controlled and also by double payment of legitimate invoices with one legitimate payment to the appropriate recipient and a second fraudulent payment to herself. Financial controls within Smith Mitchell required all client payments to be approved by two staff-members. There was evidence of allegedly fraudulent transactions supposedly signed off by a second staff member who was not in the office at the time payment was approved.
Smith Mitchell Ltd v. Bradley – High Court (26.07.19)
19.137