Two people have been sentenced for defrauding taxpayers through the Covid-19 Wage Subsidy Scheme.
Auckland man Uatesoni Filimoehala, also known as Watson Filimoehala, was jailed for two years and three months for his offending.
He created a construction company that defrauded taxpayers of more than $120,000, with there being no evidence the company was trading when applications for the subsidy were filed.
The 40-year-old was sentenced in the Auckland District Court last Friday after admitting to four charges of dishonestly taking or using a document, the Ministry of Social Development said today in a media release.
Filimoehala, who was bankrupt at the time, registered 42 Construction Limited with the Companies Office on April 17, 2020, shortly after the scheme was implemented.
He submitted six fraudulent wage subsidy applications for the company, with the first being filed just hours after the company was registered.
Filimoehala received $126,532.80 after three of the applications were successful. He also unsuccessfully applied for a further $42,491.20.
Subsequent checks by MSD found none of the employees listed in the fraudulent applications worked for the company, while others were working elsewhere and were receiving wage subsidies for their employment.
It comes after a Katikati woman was sentenced to seven months' home detention after pleading guilty to five charges of dishonest use of a document in connection with the wage subsidy.
Emma Martinson, 34, was also ordered to pay $14,059.20 in reparations during sentencing in the Tauranga District Court on September 27.
Martinson paid $2000 prior to her sentencing.
Between April 9, 2020 and April 8, 2022, Martinson dishonestly submitted 12 applications to MSD for wage subsidy and Leave Support Scheme payments despite being ineligible to receive support.
She received a total of $14,059.20 after three of the pay applications were successful.
Martinson also unsuccessfully applied for $41,662.80 in wage subsidy funds.
Eight of the wage subsidy applications were sole trader applications; seven of which were submitted in Martinson’s name, and one under the name 'Spicknspan'. Martinson was not working as a sole trader at the time.
Two further wage subsidy applications were made in Martinson’s name, listing her as an employer when she was not. Martinson also submitted two applications in the names of two other people who had no knowledge of them.
"There is no record that any of the wage subsidy funds were ever used to pay any listed employees," MSD said.
The prosecution by MSD comes as part of a work programme ensuring people who received wage subsidy payments were entitled to them.
More than 38 people have been brought before the courts for wage subsidy misuse to date.
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