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Jail for Mighty River Power fraudster

25 May 2016

Two people who committed fraud against Mighty River Power Ltd have been sentenced in the Auckland High Court.

Paul Kenneth Rose and Jane Clare Rose were found guilty in March 2016 of section 240 Crimes Act 1961 charges of "obtaining by deception" after a Serious Fraud Office prosecution. There were nine representative charges against Paul Rose and eight against Jane Rose.

Mighty River Power had undertaken an internal investigation in November 2012 before the matter was referred to the SFO.

Paul Rose was sentenced to three years and two months' imprisonment and Jane Rose was sentenced to nine months of home detention (R v Rose and Rose [2016] NZHC 1109, 25 May 2016).

The SFO says Paul Rose was employed as an Electrical Engineer at the Southdown power station. He organised for companies to be set up in the name of Jane Rose (and that of a former partner) to conceal his interest in, and connection to, these companies. 

Paul Rose then used these companies to invoice Mighty River Power, first on his own, and later with the assistance of Jane Rose. Mighty River Power was not aware of Paul Rose's interest in these companies and he did not declare the conflict of interest. Payments of about $2.2 million were made to the companies by Mighty River Power.

Paul Rose's offending occurred between March 2006 and December 2012 and Jane Rose was involved between February 2010 and December 2012.

Last updated on the 16th September 2019