Gloriavale leader and contractor in court for ‘stupid’ honey fraud

Gloriavale leader and contractor in court for ‘stupid’ honey fraud

| The Press | Joanne Naish |

Those involved in a Gloriavale honey company were “running around like headless chickens” as they committed $200,000 worth of fraud, a judge says.

Forest Gold Honey, its director, two employees and an external contractor were accused of falsifying two export health certificates for more than 9000kg of honey worth almost $200,000 that was exported to Vietnam in 2018 and 2019.

Judge Raoul Neave said it was clear none of those involved in the Gloriavale Christian community-owned honey producer had a proper understanding of exportation rules at the beginning of their venture, but when they learned they could not export honey to Vietnam they carried on regardless.

They forged documents designed to assure Vietnamese authorities they had official clearance from the New Zealand government for the exports.

“They were all running around like headless chickens trying to work out what to do,” the judge said.

“Stupid is one way of putting it.”

The offending was premeditated, financially motivated and damaged New Zealand’s excellent international reputation, Judge Neave said.

Charges against Forest Gold Honey and director Mark Christian were dropped after the company went into voluntary liquidation on November 27, owing more than $1 million.

But the company’s external sales and marketing agent, Jacqualine Elizabeth Brown, remained before the courts.

She pleaded guilty to two charges of inciting the company to forge exportation documents, and two charges of aiding the company in breaching its export duties.

On Thursday, she was ordered by the Greymouth District Court to pay $25,000 in costs on four charges of breaching the Animal Products Act.

Judge Neave said he accepted a submission from Brown’s lawyers that a conviction would hinder her ability to travel internationally for her job. Brown is a South African citizen currently based in the UK, but intends to move back to New Zealand, where she previously lived for four years, the court heard.

The judge said the consequences for Brown would outweigh her culpability in the offending.

Gloriavale senior leader and Forest Gold Honey’s marketing and sales liaison, Maranatha Stedfast, pleaded guilty to one representative charge of forgery and one representative charge of breach of exporter duties. He was sentenced to 150 hours of community work, also in the Greymouth District Court on Thursday.

Quality control manager Christopher Courage was sentenced to six months’ community detention in May on two charges of falsifying a certificate for the honey.

Judge Neave said Stedfast had no previous convictions and was of extremely good character.

The company was ultimately responsible for the fraud but it was in liquidation and no longer before the court, the judge said.

Of those remaining, Stedfast was “at the top of the tree” because he directed Courage to create the false document.

The names of everyone involved were suppressed until late last year.

Apiculture New Zealand (ApiNZ) argued against name suppression to protect the wider honey industry.

Chief executive Karin Kos said New Zealand’s honey industry had a strong international reputation for providing high quality products, supported with strict verification and traceability practices that were regularly audited by the government.

It was crucial to maintain this reputation, she said, and ApiNZ had been working closely with the Ministry for Primary Industries (MPI) to gain access to the Vietnam honey market since 2019.

“Reputation is what makes New Zealand’s honey so valuable,” she said.

MPI market access director John Ainsworth said New Zealand was eligible to export animal products to Vietnam, but the Vietnamese Department of Animal Health had yet to approve honey exports.

“Negotiations are currently taking place between MPI and the department.”

He said the offending could have wider impacts on New Zealand’s honey industry.

“If importing countries doubt the legitimacy of New Zealand’s official assurances, they may require additional requirements and measure to ensure importing requirements are met. This would require additional cost expenditure from New Zealand exporters.”