what's new in the news: Fraud almost broke business

A Blenheim small business owner says he was almost put out of business when one of his employees stole about $60,000.

But the woman does not appear in the latest crime statistics because her boss decided not to lay a complaint with the police.

The statistics show that crime involving fraud and deception in the Tasman police district, which includes Marlborough, increased by 78.8 per cent during the 2009-10 year to June 30, up from 137 cases to 245. About 87 per cent of these crimes were solved.

The business owner said he decided against pressing charges when the woman resigned and he spoke with a lawyer.

"There was little chance of recovering anything because she had no assets. It would cost a hell of a lot of time and just for a little bit of self-satisfaction. We [decided] the best thing was to move on."

The business was only just beginning to make a profit again, he said.

The woman was in charge of the paperwork and accounts and sold some stock to friends for cash, he said. When people paid in cash, she recorded the sale at a discounted price and pocketed the difference.

The company went from a profit of about $40,000 to a deficit of about $30,000 within 12 months.

The man's story came to light after several Blenheim people appeared in court on charges of stealing from their employers.

Blenheim CIB acting head Detective Sergeant Sonia Currie said that while some business owners pressed charges, others let the offending go and moved on.

"It's easier for them to let the person go and dismiss it, because the problem is gone. But what happens is the person could be re-employed, and if they're not held accountable [through the courts], they could do it again."

Business owners could also feel at fault for not picking up the fact that money was going missing, she said.

"Employers often feel let down by their employees. They see them as a friend and are unwilling to take further action against them, especially in small businesses."

A change in personal circumstances could be a catalyst for employees stealing from their employers, she said.

Most had a "false belief" that they were just borrowing the money and would pay it back, but "by the time it gets to the employer or the police, they don't have the means to pay it back because of the amount taken".

Some employees might also feel resentful about something, so they felt entitled to take the money, she said.

In the Blenheim District Court last week, Karen Vunisa was sentenced to six months' home detention and 250 hours' community work and ordered to pay $15,000 reparation for stealing about $40,000 from Marlborough TV Services.

Vunisa, who was diagnosed with a shopping addiction, used an internet banking system 103 times to divert money from the business to her own account.

Earlier this year, Letisha Miller was sentenced to six months' community detention and 200 hours' community work and ordered to pay $57,851.93 reparation to her former employer, King Contracting. Miller created false invoices and later deposited the payments in her bank account.

Michael Allan Patterson was sentenced to 170 hours' community work in May for taking $1295 from his former employer Strait Shipping by using the company booking system.

Patterson took the money to cover rent but has since repaid the money.