Ten per cent of the $32 million received by Taranaki iwi Ngaa Rauru Kiitahi in 2003 as its Treaty settlement was lost in a fraud perpetrated by iwi member Te Whitinga Mark Huirua resulting in a jail term of two years eleven months.
Huirua was appointed to the iwi’s investment arm because of his professed experience in banking and investment. The High Court was told he inveigled fellow investment board members into allowing him to make ‘direct investments.’ This involved transferring iwi funds totalling $3.1 million into two separate companies having Huirua as sole director and shareholder. Of this money: $2.1 million was lost trading; $500,000 taken for personal expenditure. Over a seventeen month period up to October 2019, Huirua created fictitious entities and manufactured fake correspondence and email traffic to conceal these losses. The fraud was revealed when auditors could find no evidence of claimed investments.
Huirua was convicted of forgery and carrying on business fraudulently. It is not a crime to make poor investment decisions, Justice Gendall said. But it is a crime to dishonestly conceal losses.
Members of Raura Kiitahi told the court of their anger and shame following Huirua’s dishonesty. Their financial loss was compounded by the fact these iwi funds were compensation for historic Treaty of Waitangi breaches.
Huirua was described as having a high sense of entitlement exhibiting impulsiveness and poor problem-solving skills. He blamed investment losses on bad luck.
R. v. Huirua – High Court (27.05.22)
22.093