Admitting to both tax fraud and frauds against Kainga Ora, plumbing contractor Mark Frederick Hughes had a $2.2 million settlement negotiated with Police approved by the High Court under the Criminal Proceeds (Recovery) Act.
Evidence was given that Hughes and his company Jamark Plumbing Ltd defrauded Kainga Ora for nearly a decade starting in 2010; charging in excess of agreed contract rates, charging for work not done and failing to install product that met Kainga Ora specifications. The cost of these frauds was estimated at about $528,000.
In addition, Hughes and his company were involved in large-scale tax evasion. Income was not declared. Untaxed barter deals saw Hughes involved in contra deals; failing to invoice plumbing work in return for work done on private properties he owned.
Hughes came clean with voluntary disclosure to Inland Revenue of his tax fraud. This resulted in tax assessments of some $1.46 million. This has been paid, the High Court was told.
Separately, police sought to recover profits generated from these frauds. Hughes had come to own two properties just south of Hamilton and four properties in Queensland. The criminal proceeds application sought to recover not only funds generated by the frauds but also capital gains arising from Hughes purchase of real estate with tainted funds.
The High Court approved Hughes payment of $2.2 million in full settlement of claims under the Act. Payment by instalments over the next nine months was approved.
If payment is not paid by required date, the six properties are to be sold, starting first with the two New Zealand properties.
Commissioner of Police v. Hughes – High Court (25.01.24)
24.046