Trial in biggest MSD Covid wage subsidy fraud allegation could take five weeks
The person accused of carrying out a massive wage subsidy fraud could have a trial lasting four or five weeks.
The Ministry of Social Development (MSD) in June alleged Luke Daniel Rivers fraudulently obtained more than $977,000.
But Rivers denies the charges and his case was heard today at Auckland District Court.
The court heard a trial was likely to take at least four weeks, and possibly five.
“It’s extremely difficult to anticipate at this stage,” defence counsel Baden Meyer told the court this afternoon.
“A number of witnesses have been interviewed as part of the investigation process,” Meyer added.
“My client denies the charges and these matters will proceed to trial.”
The trial would need a minimum of four weeks, Meyer said.
The court heard 72 witness statements had already been taken.
“What’s alleged is a substantial amount of money,” Judge June Jelas said.
The judge acknowledged the case was of high public interest.
Rivers was charged with dishonestly using a document and money laundering.
He was excused from attending his case review hearing today.
The case will be heard again in February but a trial was likely much further off.
Judge Jelas said the case would involve much administrative work.
April 28, 2025 was proposed as the trial date.
The ministry has claimed the Rivers case was the biggest wage subsidy fraud allegation it has prosecuted.
The MSD alleged Rivers defrauded taxpayers of nearly one million dollars and also tried to get another $738,000 in Covid-19 wage subsidies.
MSD previously said it completed more than 15,000 pre-payment and post-payment checks on wage subsidy applications and resolved 6703 allegations of wage subsidy misuse by the end of March.
To receive the wage subsidy, applicants generally had to sign a declaration stating they operated a business in New Zealand, a registered charity, incorporated society, NGO, post-settlement governance entity or, in some circumstances, a commonly-owned group.
John Weekes is online business editor. He has covered politics, crime, courts and consumer affairs. He rejoined the Herald in 2020, previously working at Stuff and News Regional, Australia.