Couple tried in New Zealand after escaping on business class flight after $2m fraud

An Indian-origin couple defrauded New Zealand’s Ministry of Children for $2m and siphoned money into overseas bank accounts before flying back to their hometown on a one-way business class ticket.

Neha Sharma and her husband Amandeep Sharma have pleaded guilty to charges related to a fraud scheme targeting Oranga Tamariki, New Zealand’s Ministry for Children, between 2021 and 2022.

Sharma joined Oranga Tamariki as a Property and Facilities Manager in February 2021 by using forged references.

She was sentenced to three years in prison this month for her role in the fraud, which involved using forged references to secure her job and funnelling NZ$2.1m (£929,848 ) to her husband’s company, Divine Connection Ltd, without disclosing their marriage or conflict of interest.

Amandeep Sharma also admitted guilt and his sentencing is scheduled for 19 June. He incorporated his construction company Divine Connection Ltd in February 2018 and registered it to the couple’s address in Christchurch. The New Zealand Herald stated that the media were unable to report on her pleas until Friday when her husband also pleaded guilty.

The Serious Fraud Office, which led the investigation into the long-running case, said the “convictions mark an important milestone” in he case. The case “reinforces the serious consequences of abusing a position of trust for personal gain, especially when public funds are involved”.

“Offending of this kind erodes public confidence and harms the integrity of New Zealand’s public institutions and our reputation as a safe place to invest. It’s critical we take action to disrupt and deter such behaviour,” the office said in a statement.

The charges against the Sharmas were filed in June 2023 by the SFO.

This case also highlights the requirement for rigorous vetting of public servants, especially as they move between agencies.

Once employed at the ministry of children, Neha Sharma set up her husband’s Divine Connection Ltd to Oranga Tamariki’s list of contractors without disclosing her relationship with Amandeep Sharma, violating conflict-of-interest protocols.

Between July 2021 and October 2022, Neha Sharma approved 326 invoices, resulting in 103 payments totalling over NZ$2.1m to Divine Connection Ltd for work on various properties, including youth justice facilities like Te Puna Wai and Te Oranga.

The company was not an approved supplier and the work was preferentially assigned over other contractors.

Red flags were raised in late 2022 when Oranga Tamariki’s internal audits flagged irregularities in Divine Connection’s invoices and job assignments, and later raised suspicions after it was found that the company was registered to Neha Sharma’s home address.

The investigations into the case were transferred to the SFO, which raided the couple’s Christchurch property in March 2023, uncovering three properties, three vehicles, and NZ$800,000 in liquid assets.

Soon after, the two booked one-way tickets flying business class on Singapore Airlines to Chennai, India. The trip appeared strange as the two had a busy schedule, including a pregnancy, and the Sharmas had signed up for a parenting education course.

Amandeep Sharma had booked two trips to the capital, Auckland, while Neha bought two tickets for a baby expo.

They boarded the flight on 14 April 2023 after attempting to liquidate their properties and cars and transferred just under NZ $800,000 in cash from their bank accounts to accounts held in India.

However, the New Zealand Police, in collaboration with Indian authorities, restrained the transferred funds in India. The High Court issued a restraining order on the couple’s New Zealand properties under the Criminal Proceeds (Recovery) Act 2009.

At her initial appearance in June 2023, her lawyer said that she had recently given birth and had intended to return to New Zealand from India with her child as soon as she was able. She returned to New Zealand later that year.

She also pleaded guilty to forging documents to secure the job at the ministry. She forged references that were supposed to be from two people from her previous employer. She remains in a prison with her baby in the mothers and babies unit.