Covid Funds Fraud: Former MIQ Lead Sentenced to Nearly Three Years in Prison
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A former Covid-19 managed isolation and quarantine service lead has been sentenced to two years and eight months in prison after admitting to defrauding two District Health Boards (DHBs) of more than $1.8 million. The case highlights the vulnerabilities exploited during the pandemic as government funds were rapidly deployed to address the public health crisis.
Palmerston North Court Delivers Sentence
Alister Thorby, 25, appeared at the Palmerston North District Court where Judge Bruce Northwood handed down the sentence and ordered Thorby to repay the $1.882,400 he illegally obtained. Initially facing 12 charges of obtaining by deception totaling $1.4 million, Thorby ultimately pleaded guilty to a larger sum of fraud exceeding $1.8 million.
Exploiting a System Under Pressure
Thorby’s role as the Covid managed isolation and community quarantine service lead for Capital and Coast DHB and Hutt Valley DHB, between October 11, 2021, and June 30, 2022, provided him with the opportunity to submit invoices for services at MIQ facilities and for security and cleaning in Wellington and Paraparaumu. Over a five-month period in 2022, he submitted 17 invoices from three companies: Moutoa Māori Wardens, Te Awahou Cleaning & Co, and Horowhenua Motorhome Rental. Investigators discovered that Te Awahou Cleaning & Co and Horowhenua Motorhome Rental were fictitious entities.
The fraudulent invoices detailed security services and logistical support at facilities including the Paraparaumu Motel, the Quest Lambton Hotel, and the Terrace Villas. However, authorities found that none of the claimed work was actually performed by any of the listed companies. One invoice alone reached $305,000 for unspecified security work, while another totaled $301,000 for 24-hour security at an unknown location.
Lavish Spending and a Swift Arrest
Thorby used the stolen funds for personal gain, including the purchase of a property in Foxton, multiple vehicles, and international travel. He was arrested in 2022 while preparing to depart for a holiday in Brisbane.
A “Sophisticated” Scheme and a Plea for Leniency
Judge Northwood characterized Thorby’s actions as “sophisticated,” noting the scheme required rapid planning and execution. “This was a time of vulnerability; the Government was trusting people with Government funds,” the judge stated. Thorby claimed to his probation officer that some of the stolen money was used to purchase resources for the Moutoa Māori Wardens, but Judge Northwood found no evidence to support this assertion.
Despite the severity of the crime, a number of character references were submitted on Thorby’s behalf, including a plea from an archbishop for leniency, suggesting a “smack on the hand” rather than a lengthy prison sentence. Thorby’s lawyer, Ron Mansfield, KC, described the case as a “significant fall from grace” for a young man previously regarded as a community leader, stating that he “sought to exploit” the opportunity presented to him.
The sentencing serves as a stark reminder of the potential for fraud during times of crisis and the importance of robust oversight of public funds.
