New Zealand Woman Sentenced to Prison for Covid-19 Wage Subsidy Fraud
A Wellington woman has received a 20-month prison sentence after exploiting the Covid-19 Wage Subsidy Scheme, fraudulently obtaining $28,118 by using her own name and the identities of ten others – including deceased individuals.
Sariah Wehipeihana pleaded guilty in January of last year to two representative charges of dishonestly using a document. These charges related to five successful wage subsidy applications and an additional 27 that were ultimately unsuccessful. The sentencing took place at Auckland District Court on February 5th.
Scheme Exploited During Pandemic Peak
The fraudulent applications were submitted during a critical period of the pandemic, between April and June 2020, when the New Zealand government implemented the Wage Subsidy Scheme to help businesses retain employees. Wehipeihana’s scheme involved submitting applications using not only her own name but also the names of ten other individuals. Disturbingly, this included people who were unaware their identities were being misused, and, in some instances, the names of people who had already passed away.
Funds Misappropriated for Personal Use
The successful applications resulted in a total of $28,118.40 being deposited into bank accounts under Wehipeihana’s control. According to reports, these funds were then used for personal expenses, including shopping and online gambling. A court sought a reparation order to recover the stolen funds, but to date, no repayments have been made.
Growing Trend of Wage Subsidy Fraud
The case highlights a broader issue of fraud related to the Covid-19 Wage Subsidy Scheme. The Ministry of Social Development (MSD) stated that 56 individuals have now been sentenced for wage subsidy fraud. An additional 48 cases are currently being prosecuted in court. Despite the fraudulent activity, the MSD confirmed that more than $830 million in wage subsidies have been repaid since the scheme’s inception.
This case serves as a stark reminder of the lengths to which some individuals will go to exploit government assistance programs, even at the expense of others and the integrity of the system.
