Cyber bullies could face jail under new Government plan

Cyber bullies could be sent to jail for up to three years under new Government proposals aimed at protecting victims of online bullying.

“Tormenters are able to harass their targets 24 hours a day, seven days a week, wherever they go, and the trail of abuse lives on in cyberspace, following victims for years,” Justice Minister Judith Collins said.

The proposals include creating a new offence of incitement to commit suicide, even in situations when a person does not attempt to take their own life, punishable by up to three years imprisonment.

It would also be an offence to send messages and post material online that was grossly offensive, indecent, obscene, menacing or knowingly false, punishable by up to three months imprisonment or a $2000 fine.

An approved agency would be set up as the first port of call for complaints, while serious complaints could be taken to the district court, which would be able to issue sanctions including take-down orders.

“People needing help will get fast support including liaison with website hosts and ISPs to request take-down or moderation of clearly offensive posts,” Collins said.

“No one should ever be subject to this kind of cowardly attack – now with the right support and modern laws in place, victims will no longer have to suffer.”

Netsafe executive director Martin Cocker said the proposals reflected, almost entirely, recommendations made last year by the Law Commission.

“We think they are a really sensible set of proposals. What happened through the process is that both issues of cyber bullying and the need to protect freedom of speech and opinions on the internet were considered. So the final proposals are a balanced approach to combating cyber bullying, in our opinion.”

He cautioned that, while it was relatively easy to write legislation, it was difficult to make those laws practically enforceable on the internet. The new proposals sought to do that through a new agency and new powers.

The interesting part for Netsafe was the idea of an approved agency to try to coordinate complainants and those harassing them into a solution without having to go to court, Cocker said.

“There is a realistic likelihood of a positive outcome under that model.”

The proposals for new offences for which people could be sent to prison were aimed at addressing a gap in the law.

Technology was being used in ways that were offensive and harmful and law enforcement agencies did not have clarity about how to deal with such problems.

“There is a sector that works pretty hard to protect the internet against any sort of controls and … that sector will always be uneasy about new regulations, but I think the new regulations did take their concerns into consideration,” Cocker said.

“It’s important to recognise that these proposals aren’t about controlling the internet or filtering or putting mechanisms onto the internet. These proposals are focused on people causing the harm and people being harmed.”

Collins said under the proposals harassment, privacy and human rights laws would be amended to ensure the were up-to-date for digital communications.

Source: Cyber  bullies face jail under new Govt plan. Story by Michael Daly. 4 April 2013

http://www.stuff.co.nz/technology/digital-living/8507497/Cyber-bullies-face-jail-under-new-Govt-plan

Fairfax NZ News

Appeal Court backs liquidators’ power to claw back payments made by an insolvent company

The Court of Appeal has backed liquidators’ power to claw back payments made by an insolvent company up to two years before its collapse.

Three High Court decisions last year undid a commonly held belief about voidable transactions, where a liquidator can order a creditor to repay money received from a troubled firm.

The voidable transaction process is designed to prevent creditor queue jumping. A creditor can defend against a claim if it can prove it acted in good faith in accepting the payment, had no reason to suspect the business it was trading with was in trouble and gave value for the funds received.

The High Court ruled a creditor should not be disadvantaged just because it provided its services before being paid, as many suppliers did.

The High Court decisions meant voidable transactions would be virtually unenforceable and so appeals were lodged.

Source: Fairfax NZ

Maria Slade. Business Day 30 March 2013. www.stuff.co.nz

For further details see:

Interim Judgment of the Court of Appeal dated 27 March 2013.

Farrell and Rogan as Liquidators of Contact Engineering Ltd v. Fences & Kerbs Limited

CA 773/2012 [2013] NZCA 91

Given  by P. Randerson J.

Hearing date 7 February 2013

O’Regan, P. Randerson, and French JJ

http://www.courtsofnz.govt.nz/front-page/cases/farrell-and-rogan-as-liquidators-of-contact-engineering-limited-v-fences-kerbs-limited

Hohepa Morehu-Barlow: Kiwi fraudster jailed for defrauding Queensland Government of A$16 (NZ$20M)

A flamboyant Kiwi fraudster who defrauded the Queensland Government of A$16 million ($20 million) has been sentenced to 14 years in an Australian prison. Former Brisbane socialite Hohepa Morehu-Barlow, who grew up in Thames, has admitted systematically stealing the money while working for Queensland Health.

Morehu-Barlow, who was also known as Joel Barlow, pleaded guilty to eight charges relating to fraud and drug offences when he appeared in the Brisbane District Court today.

His offending, the largest ever fraud against the state government, funded an extravagant lifestyle that made Morehu-Barlow one of Brisbane’s fashionable high flyers.

For more see:

http://www.odt.co.nz/news/world/australia/250045/kiwi-pleads-guilty-20m-fraud

Thames man pleads guilty to defrauding Queensland health department of A$16.6 million (NZ$20.91)

A former Thames man who fleeced A$16.6 million ($20.91m) from Queensland taxpayers forged documents carrying the health minister’s name, a court has been told.

A sentencing hearing for Hohepa Morehu-Barlow, also know as Joel, has also been told he had previously faced court for stealing from an employer in New Zealand.

[Source: AAP - Stuff News report 19 March 2012]

The 37-year-old pleaded guilty in the Brisbane District Court today to eight offences including aggravated fraud as an employee, forgery, uttering a forged document and possessing drugs.

The charges relate to him defrauding the Queensland health department of millions of dollars when he worked there between 2007 and 2011.

He ripped off taxpayers while pretending to be a Tahitian prince, and led an extravagant lifestyle while showering lavish gifts on friends and colleagues.

Prosecutor Todd Fuller SC told the court Morehu-Barlow had previously appeared in court for stealing from an employer across the Tasman.

In 1999, he received an eight-month non-residential sentence in New Zealand for a charge of stealing around $32,000 as a servant.

He received a similar sentence at the same time for using a document for fraudulent advantage.

No details were given as to the identity of his employer at the time.

Fuller said the offending was in a similar vein to his latest offences, which involved him approving payments from Queensland Health.

Most payments were siphoned from a special minister’s fund that was designed to provide revenue to charities.

Morehu-Barlow forged a document purporting to be from former health minister Paul Lucas approving a charitable grant, and then transferred the cash to himself, the court heard.

He also used other official documents for his own fraudulent activity.

The fraudulent transactions increased in size until he approved an A$11 million payment to himself, which had purportedly been approved for a university dental scheme.

The hearing continues.

Source: AAP dated 19 March 2013

See: Thames man admits Queensland health service fraud

http://www.stuff.co.nz/waikato-times/news/8445189/Thames-man-admits-Queensland-health-service-fraud

Nudity a human right, says ‘naked rambler’

A British man who has spent most of the past decade naked in jail – is back behind bars after defying an order to cover up.

Stephen Gough, known as the “Naked Rambler,” was arrested Thursday as he left a court in Southampton, southern England, wearing only boots, socks and a knapsack.

A judge had just imposed an order that he must “wear sufficient clothing in public to at least cover his genitalia and buttocks.”

The 54-year-old former Royal Marine appeared at the same court Friday, and was ordered detained until a hearing on March 25.

Since 2003 Gough has completed two naked walks the length of Britain, with frequent interruptions for arrests, court appearances and jail time.

He has said he believes nudity is a human right.

Source dated 02 March 2013

http://www.stuff.co.nz/world/europe/8373374/Nudity-a-human-right-says-naked-rambler

Further references

http://www.bbc.co.uk/news/magazine-19625542

http://www.dailymail.co.uk/news/article-2222948/Naked-Rambler-arrested-AGAIN-going-stroll-Lesbian-capital-Britain.html

http://en.wikipedia.org/wiki/Stephen_Gough

Dominatrix Forklift ad ruled offensive by Advertising Standards Authority

An ad for used forklifts featuring a ”sexualised and objectified” woman in dominatrix-like clothing has earned a South Island company a slap on the wrist from the advertising watchdog.

The ad featured the woman holding a heavy chain, with a forklift in the background. The text read: ”You know you’re not the first … But does that really matter? Used Forklifts.”

The Advertising Standards Authority [ASA] has upheld a complaint that the ad was offensive, saying the advert used inappropriate sexual appeal.

The Advertising Code states products cannot be promoted through the use of exploitative or degrading sexual images, especially if the product is completely unrelated to such images, as was the case here.

The complainant said it was ”just offensive to see that women’s bodies are used to sell a service that clearly targets men”.

”It becomes a sort of attention-seeking behaviour that is in many ways detrimental to how all women are viewed,” the authority was told.

The advertiser, Independent Forklifts, said the campaign had been running for three years without complaint.

It also stated if the Jockey campaign featuring All Black Dan Carter in his underwear was acceptable, its imagery must be as well.

The Complaints Board said the Jockey ads were different as the product being sold was underwear.

The watchdog also said as the advert was on a vehicle, it would be highly visible to the general public, including children, rather than just its presumed target market of adult men.

If a complaint to the authority is upheld, the advertiser is asked to remove the ad, though there is no punishment.

Source: Fairfax News NZ. 

Saucy forklift as deemed offensive. Story by Olivia Wannan. 19 February 2013.

http://www.stuff.co.nz/business/industries/8322044/Saucy-forklift-ad-deemed-offensive

David Ross stripped of Institute of Accountants (ICA) membership

Wellington’s David Ross, at the centre of the collapse of a suspected Ponzi scheme involving about $450 million, has been stripped of his membership of the Institute of Chartered Accountants (ICA), for now.

Under an “interim suspension”, David Robert Gilmour Ross lost his institute membership after a hearing held in secret in the middle of last month. The suspension was announced by the ICA disciplinary tribunal yesterday.

Financial Markets Authority (FMA) staff raided Ross’ offices on The Terrace late last year after investors complained they could not get their money.

Receivers have been able to locate only about $11m of the almost $450m some 900 investors believed was being managed on their behalf by Ross Asset Management Ltd (RAM) [Co. No  455971. Formerly called Quill Investments Ltd].

Last month the first disciplinary action was taken against Ross, with the FMA suspending his licence as an authorised financial adviser for six months as it continues to investigate possible Securities Act breaches.

After the FMA action, the ICA said matters identified by RAM’s receivers warranted a complaint to the professional conduct committee from the institute’s chief executive, which led to the interim suspension.

Ultimately, the institute’s disciplinary tribunal has the power to strike off Ross as a chartered accountant.

Bruce Tichbon, spokesman for the Ross Asset Management Investors Group, said they had expected the suspension.

Tichbon said knowing Ross was a chartered accountant had given him confidence in Ross.

“It gave him an aura of professional respectability,” he said.

Tichbon said other members of the investor group had asked him to pursue whether Ross’ status as an accountant required auditing by the institute.

“I have been informed there were certain burdens on the accounting professional bodies to test the veracity of his services and therefore there was likely to be some grounds for claim there,” Tichbon said, though he had not confirmed that.

The institute carries out a regular review of accountants who hold a certificate of public practice, but it would not comment directly on Ross’ professional conduct. Only members of the institute can call themselves chartered accountants, which means they have certain qualifications and experience.

Meanwhile, Tichbon said regulations relating to apparent Ponzi schemes seemed to be “virtually non-existent”.

“The lack of legal clarity is a serious and cruel issue,” he said, because there was no case law for apparent Ponzi schemes.

Hundreds of investors were left totally up in the air. There were no clear guidelines on how the case should be managed – for example, whether money could be clawed back from some investors who had earlier taken money out. Earlier reports from the receivers showed that since 2000 just over $303m had been invested through the firm, while $29.8m was taken out in fees, and investors withdrew $289m.

“People are really suffering terribly,” Tichbon said, with some investors suffering from depression.

“Instead of a [regulatory] ambulance at the bottom of the cliff, there is a cesspit of broken glass and alligators.”

Source:

Report by James Weir, Fairfax NZ News. 17/01/13

http://www.stuff.co.nz/business/money/8186916/Ross-stripped-of-ICA-membership

Earlier reports:

1. SFO begins probe into David Ross, asset management firm, 19/11/12

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10848504

2. Report by Jonathan Underhill, National Business Review. 04/12/12

http://www.nbr.co.nz/article/ross-asset-investors-face-gruesome-legal-fight-if-ponzi-scheme-shown-bd-133420

3. Report by Hamish Rutherford, Fairfax NZ News. 17/12/12

http://www.stuff.co.nz/business/industries/8090115/Ross-Asset-Management-liquidated

AWINZ trustees’ defamation proceedings using Lord Dowding/Humane Research Fund charity money

Item 6 in The Royal Society of New Zealand Alert Newsletter 743 states:

6. New Zealand Fund for Humane Research (Lord Dowding Fund) research grant

The Animal Welfare Institute of New Zealand [AWINZ] is seeking expressions of interest for a grant of $20,000 from the New Zealand Fund for Humane Research (Lord Dowding Fund).

The grant will be for research that will contribute to the replacement or reduction of the use of animals in research, testing or teaching, but will not itself involve the use of any animals or animal tissue.

Expressions of interest must be received no later than 28 February 2013. To do this, and/or to seek further information, please email Neil Wells (neil.wells@xtra.co.nz).

The final decision will be made on or before 30 April 2013.

Item 6 Posted 15 November 2012.

Source: http://www.royalsociety.org.nz/2012/11/15/alert-newsletter-743/#6-new-zealand-fund-for-humane-research-lord-dowding-fund-research-grant

The Society (SPCS) has published on its website its investigations into the activities of AWINZ (The Animal Welfare Institute of New Zealand), an unincorporated charitable trust of which Auckland barrister Neil Edward Wells is “the Settlor” of its alleged “Deed of Trust and Revocation” dated 5th December 2006.

AWINZ was registered as a charity with the Charities Commission on 28 September 2007 (Reg. No. CC11235) and has spent $126,850 over four years (2007 to 2011) on defamation proceedings taken by three of its trustees against a ‘whistler blower’ – Ms Grace Haden, a registered private investigator – who has sought to highlight alleged fraudulent and corrupt practices involving the charity and its trustees. The funding for these proceedings, filed in the name of AWINZ trustee Neil Wells of 1308 State Highway 3 Rd 5, Te Kuiti 3985, and two other trustees – Graeme John Coutts and Winifred (Wyn) Norien Hoadley QSO, came from the AWINZ money – specifically a National Bank Term Deposit designated “Lord Dowding Fund” (“LDF”).

Legal proceedings by AWINZ against Ms Haden have continued since Neil Wells filed the last set of AWINZ financial accounts for the year ending 30 June 2011. As the 2012 AWINZ financial accounts are not yet available on the Charities website (they were due to be filed no later than 31/12/12), it is unclear how much more of the “LDF” money has been allegedly mis-used by Neil Edward Wells and his colleagues to advance their case against Ms Haden (they are currently seeking to liquidate her company Verisure Investigations Ltd and bankrupt her) and gain pecuniary benefits from the attempted prosection.

A recent notification on the Charities website indicates that the AWINZ 2012 financials have just been received , but the documents remain “restricted” (no reason given). It is noteworthy that AWINZ trustees Neil Edward Wells and Wyn Norien Hoadley have personally received $50,000 and $16,800 respectively from Court awards for “damages” in their joint -defamation case against Ms Haden. Neither beneficiary has personally funded the Court proceedings as the money has all come from LDF.

The Lord Dowding Funds (“LDF”) have been recorded on the Charities website in AWINZ Funds records as $98,208 (2007); $90,000 (2008); $44,000 (2009); $46,281 (2010); $48.209 (2011), with interest earned separately recorded as $9,712 (2007); $7,737 (2008); $3,731 (2009); $2,345 (2010); $1,968 (2011).

The opening accumulated reserves for AWINZ was recorded as $119,767 and $110,226 for 2007 and 2008 respectively. The majority of this money was designated “LDF” money, including interest earned.
According to AWINZ (alleged) Minutes dated 10th May 2006, funds from Beauty with Compassion (BWC), [an incorporated society which was struck off the Societies Register on 6th September 2000], “became part of the operating funds” of AWINZ. This transfer must have occurred some time after Neil Wells wrote to the Secretary of the now defunct BWC, Lucille Heather. on 14th March 2005, as Trustee of AWINZ, soliciting money from BWC for AWINZ, and before 10th May 2006.
Wells recorded in the AWINZ (alleged) Minutes dated 10th May 2006, that “$90,000 is held as deposit for the Lord Dowding Fund … the “balance handed to AWINZ” in 2005.
See: http://www.transparency.net.nz/wp-content/uploads/2011/07/AWINZ-MEETING-MINUTES-doc-10-05-06-original.pdf
See:  http://www.transparency.net.nz/wp-content/uploads/2011/07/lord-dowding.pdf
“Haden Legal costs” incurred by AWINZ are recorded on the Charities website as: $32,312 (2007); $12,904 (2008); $60,150 (2009); $21,484 (2010). This is a total of $126,850.
The only “LDF grant” ever issued by AWINZ since it was registered as a charity on 28 September 2007 was made in 2008 – a grant of $5,750 –  for “research into measuring stress levels in animals kept in custody for long periods”(recipient unstated). [Source: AWINZ Minutes 10/05/2006]. This money came from $8,208 of interest earnt by AWINZ on the LDF “Capital Sum of $90,000″, which had been “credited to the AWINZ general account”. [Source: Email: Chris McIntyre, Charities Commission, to Neil Wells 07/09/2009].
What then has happened to the LDF money in excess of $100,000 transferred to AWINZ from BWC and what is the link to The New Zealand Fund for Humane Research (“NZFFHR”)?
Clearly the bulk of the LDF money ($126,850) has been used to fund defamation proceedings against a registered private investigator Grace Haden. The proceedings had to be lodged in the name of the majortity of the trustees of AWINZ, rather than by AWINZ, because this charitable trust has never been incorporated under the Charitable Trusts Act 1957.
Now AWINZ/Neil Wells is calling for “expressions of interest” from researchers for charity grant money from its so-called “New Zealand Fund for Humane Research (Lord Dowding Fund)“, the same fund that is being used to assist Wells, Coutts and Hoadley pursue and prosecute Grace Haden in the Courts, and gain pecuniary benefit by way of “damages awards”.
The New Zealand Fund for Humane Research (NZFFHR) is effectively a defunct incorporated charitable trust of which Neil Wells has been a trustee since 1983. It remains on the Register of Charitable Trusts ( No. 212230) and was incorporated on 14 August 1981.

The New Zealand Fund for Humane Research (“NZFFHR”) is not associated in any way with the Lord Dowding Fund (“LDF”) and therefore has no right to use its name. Neil Edward Wells is a trustee of both NZFFHR and AWINZ and has merged both NZFFHR and LDF in his call for “expressions of interest” for a $20,000 “New Zealand Fund for Humane Research (Lord Dowding Fund) research grant”. However, they are distinct organisations and “not associated in any way,” according to the Executive Assistant of LDF.

The LDF was founded in 1973 in honour of the President of the National Anti-Vivisection Society (NAVS), Air Chief Marshall the Lord Dowding. For more details go see: http://www.ldf.org.uk and http://www.ldf.org.uk/research/49/50/0/.

References   
                                                                                                                                                                                                                                                                               The Royal Society of New Zealand Alert Newsletter 743 (posted 15/11/2012)
http://www.royalsociety.org.nz/2012/11/15/alert-newsletter-743/#6-new-zealand-fund-for-humane-research-lord-dowding-fund-research-grant.

‘King of Porn’ unmasked

He has been dubbed the “King of Porn”. Last week his identity was laid bare, as reported in the NZ Herald.  The “chubby, pale-faced” business entrepreneur involved in computer software and the marketing of porn, was arrested on charges of widespread and persistent tax evasion.

See: The New Zealand Herald. Saturday 22 December 2012.

http://www.nzherald.co.nz/world/news/article.cfm?c_id=2&objectid=10855665

 

 

Securities Commissioner told of Ross Asset Management Ponzi scheme concerns but took no action

The Securities Commission appears to have been warned about suspected Ponzi scheme operator David Ross three years ago, but took no action. [David Ross was sole director of failed Ross Asset Management Ltd]

An email obtained through the Official Information Act shows Securities Commissioner Annabel Cotton was told of concerns about Ross in September 2009.

At the time, Ms Cotton had a special role as commissioner for financial advisers, responsible for developing a code of conduct for the financial advisory industry.

The email reads:

“Has anyone every [sic] looked into the activities of David Ross funds management? He doesn’t ad [sic] up to me and I could explain why verbally if you wished.”

The name of the sender was redacted from the OIA document, although it is understood the sender was a professional investor.

Ms Cotton said she had forwarded the email from her personal address to her Securities Commission address so that she could discuss it with commission staff when she was next in the office, “and to the best of my knowledge that’s what I would have done”.

“What happened from there I don’t know. I would have left it with a senior staff to work things from there and decide what to do.”

The Dominion Post has learnt of another individual who claimed he contacted Ms Cotton verbally about Ross, before September 2009.

The person, who asked not to be named, said he was told the commission was too busy to look into his concerns.

“I remember Annabel’s words exactly,” he said. “[She said] ‘I hope you’re not right’.”

Ms Cotton, who owns investor relations consultancy Merlin, said she had no recollection of the conversation.

The Financial Markets Authority, successor to the Securities Commission, licensed Ross as an authorised financial adviser in July last year.

Ross’s Wellington offices were raided by the FMA on October 31 after it received client complaints on October 25.

Receivers appointed to Ross companies by the High Court have found assets totalling $11.5 million, a significant shortfall on client accounts purporting to be worth $449.6m.

The Serious Fraud Office is investigating.

Source:

http://www.stuff.co.nz/business/money/8072464/Commissioner-told-of-Ponzi-scheme-concerns

The Dominion Post, Thursday, December 13, 2012, p. A3

Further Reading:

Ross Asset Investors may face ‘gruesome legal fight’

The National Business Review, Tuesday 4 December, 2012

http://www.nbr.co.nz/article/ross-asset-investors-face-gruesome-legal-fight-if-ponzi-scheme-shown-bd-133420

 

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