Director also slapped with nine-month home detention
A Christchurch company director has been sentenced to nine months of home detention after being found guilty of invoice fraud, resulting in substantial financial losses, according to reports.
Colin Fitzgibbon, the director of ACK Contractors Limited, was also ordered to pay reparations totalling $83,564 to victims of his fraudulent activities, the Christchurch District Court ruled.
Fitzgibbon was found to have engaged in deceptive practices by producing fraudulent invoices amounting to $668,393 to address cash flow challenges faced by his company, Stuff reported.
These actions led to ACK Contractors Limited receiving an advance of $535,665 from Canterbury Invoice Finance Limited, which operates under the trade name FIFO Capital, between January and March of 2020.
Vanessa Cook, the national manager of criminal proceeds integrity and enforcement for the Ministry of Business, Innovation and Employment (MBIE), described the fraudulent activities as moderately sophisticated and premeditated by Fitzgibbon.
"He sold the invoices to FIFO Capital so that his company could get cash faster than it would have received if it had waited for monthly payments made by the client companies," Cook said as quoted by Stuff.
"The offending was premeditated. While Mr Fitzgibbon intended to complete the work, he was aware that there was a risk of causing loss."
Discovering the invoice fraud
The fraudulent invoicing came to light during the receivership of ACK Contractors Limited, which was initiated on April 28, 2020.
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As receivers attempted to recover the alleged debts from clients, including the Christchurch Northern Corridor Alliance project and HEB Construction Limited, both companies reported that the invoices were fraudulent and that no payments were due to ACK Contractors Limited.
Judge GM Lynch acknowledged Fitzgibbon's remorse and willingness to engage in restorative justice as factors in his sentencing.
The judge also considered Fitzgibbon's previous good character, his proactive measures to repay the victims, including selling his family home, and his cooperation throughout the investgation.