Collins Judith: Questions for Oral Answer — Questions to Ministers Questions to Members 
Collins Judith: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:642;Page:12352] 
10.  
JUDITH COLLINS (National—Clevedon) 
 to the  
Minister for Social Development and Employment 
: How many identities did Wayne Patterson use to fraudulently obtain benefits from Work and Income and what was the total value obtained broken down by type of benefit received? 
Hon STEVE MAHAREY (Acting Minister for Social Development and Employment) 
: 
 I am advised that Wayne Thomas Patterson used 123 unique unlinked and totally internally consistent identities to defraud the ministry of $3.4 million. He stole $608347.25 in unemployment benefits and $2808395.66 in New Zealand superannuation. As the judge in the case said Mr Patterson was involved in what amounted to “a full time occupation of serious dishonesty. It is very far removed from what is commonly called benefit fraud.” 
Judith Collins 
: Can the Minister confirm that a bank officer not Work and Income staff detected Wayne Patterson’s benefit fraud; and that if the bank officer had not picked up this suspicious activity there is every chance that Wayne Patterson would still be getting away with these crimes? 
Hon STEVE MAHAREY 
: My information is that yes that was the case. The bank officer did that because Mr Patterson made a mistake. But I want to point out as the judge did that this is an extraordinary case of a person who put his heart mind and intelligence into 123 different identities to defraud the State. 
Lesley Soper 
: What steps has the Government taken to recover the money and ensure that cases like this one do not happen again in the future? 
Hon STEVE MAHAREY 
: Mr Patterson’s assets have been seized and I am advised that the Ministry of Social Development expects to recover over $4 million—$3.4 million was defrauded but over $4 million will come back. I want to stress that there is a zero tolerance to benefit fraud. The ministry has implemented a new system of daily checks against the birth register strengthened the photographic identification requirements and established an intelligence unit to deal specifically with fraud cases. Departments are working together to identify issues of identity fraud. However even the most robust system will be vulnerable to the most determined fraudster. But as Mr Patterson’s case shows even the most able fraudster eventually gets caught. 
Judith Collins 
: Why did the ministry not consult the Serious Fraud Office when it realised it was dealing with a fraud of well over $1 million; and why were the police not involved to the usual extent in a fraud of such magnitude despite a previous assurance from the ministry that it was policy to refer any significant fraud investigations to either the police or the Serious Fraud Office—why did the ministry keep it in-house? 
Hon STEVE MAHAREY 
: One thing I would point out in relation to the end of the question is the highly successful conclusion of this investigation that resulted in the State getting back in excess of $4 million when it had lost $3.4 million which says that the way this was handled was obviously very effective. The operation included senior staff from the Ministry of Social Development its investigators the New Zealand Police the Department of Internal Affairs the Crown Law Office Crown-warranted criminal prosecutors and forensic accountants and was done in liaison with the Inland Revenue Department. The member is right. The Serious Fraud Office was not involved in this investigation but as I said before the investigation was highly successful. 
Judith Collins 
: Is it not the case that after the ministry gave away $3.4 million it then got lucky—the bank found the fraud the gold price went up the currency rate went up Apple computer shares went up and the fraudster wrote incriminating letters from prison and then pleaded guilty—and surely the Director of the Serious Fraud Office was correct when he wrote: “The role adopted by the ministry as the investigator the prosecutor and the political adviser of this significant fraud in which it was also the victim raises perception issues that would have been avoided had the police or the Serious Fraud Office been responsible for the investigation and prosecution.”? 
Hon STEVE MAHAREY 
: No one gave any money away. This person as the judge said was a unique fraudster and outstanding in his own field—literally because no one else has ever done this. There were 123 unique unlinked absolutely different identities used by this person so no one gave money away; this person stole it. Of course I want to point out as I said before that the investigation was successful to the extent that over $4 million will be returned. 
Judith Collins 
: Does the Minister believe that if the powers of the Serious Fraud Office had been used rather than ignored by his ministry his chief executive would not have written to the sentencing judge: “I acknowledge that Mr Patterson has now agreed to allow the proceeds of crime orders to proceed and I appreciate his cooperation in this.”; and why are we relying on the good graces of a criminal rather than using the laws that have been designed for this very situation? 
Hon STEVE MAHAREY 
: The answer is no. I just repeat that the success of this investigation is that we are sitting here today as taxpayers of New Zealand looking at a uniquely outstandingly different form of fraud that has now been defeated. The person has been prosecuted and in excess of $4 million will come back. 
Judith Collins 
: I seek leave to table a report that the Ministry of Social Development refused in 2005— 
Document not tabled. 
Judith Collins 
: I raise a point of order Madam Speaker. There is no way that the House would know the contents of that report or even what it is about. 
Madam SPEAKER 
: No I have put the question. Leave was given. I have ruled on this matter. 
Judith Collins 
: I seek leave to table the report of the general manager of Benefit Integrity Services that recommends— 
Madam SPEAKER 
: Leave is sought to table that report. Is there any objection? Yes there is objection.