Fraud charge 'flies in face' of Love's service - Defence

Fraud charge 'flies in face' of Love's service - Defence

The defence for Sir Ngatata Love says to suggest he's guilty of fraud is an "unacceptable proposition that flies in the face of a lifetime of service".

The former chairman of iwi organisation, the Tenths Trust, is facing charges of fraud and corruption in a judge-alone trial in the Wellington High Court.

The Crown earlier alleged Love knew a $1.5m payment from a developer to a company run by his partner, Lorraine Skiffington, would ultimately go towards paying down a mortgage on a $1.8m Plimmerton home.

The Crown had previously said Love signed an agreement in 2006 with Auckland developers Redwood and Equinox to ensure they could lease land owned by the Tenths Trust and that he received payments via Pipitea Street Development Ltd (PSDL), without the Trust's knowledge. 

PSDL is owned by Skiffington.

As part of a services agreement, developers were prepared to pay a premium of $1.5m within seven days of signing the agreement.

The Crown says the beneficiaries of that money should have been the Trust. Instead, those funds were used to reduce the loan taken out on the Plimmerton property.

It says Love did not advise trustees of a $3m lease premium developers had agreed to pay, nor did he advise them at a later date.

Defence lawyer, Colin Carruthers QC, says the only shared financial arrangement Love had with Skiffington was his involvement in the purchase of the Plimmerton house. 

"When you look at financial arrangements they had, all payments in relation to mortgage, outgoings...equity was hers.  Their financial positions were separate."

Shaan Stevens, a former colleague of Skiffington, had previously told the court his "life would be very difficult" if he did not carry out instructions to transfer $1.4m into trusts used by Love to buy a home.

Mr Carruthers alleges Stevens told a "bare-faced lie" in saying he wasn't invited to meetings or negotiations with developers and Skiffington's company, and that he was told it was all being done by Skiffington and Love.

Mr Carruthers requested Love be acquitted on both the lead charge and the alternative charge.

Skiffington has also been charged, but has been granted a permanent stay due to ill health.

Love has twice become ill while giving evidence during the trial. He was not present in court on Thursday.

Justice Graham Lang proposes to deliver a verdict at 9am on September 1.

Newshub.