The Internal Affairs crackdown relates to activities in the Class 4 non-casino gaming machine sector. File pic Photo: BRUCE MERCER/STUFF
Eight people have been charged after an investigation by the Department of Internal Affairs (DIA) "found a network of corruption" in the gambling sector in Hawke's Bay.
The DIA said it found collusion between class 4 venue operators, corporate societies and grant recipients.
It said the charges "relate to the misappropriation of Class 4 (gambling) grant funds, theft of gaming machine proceeds and offering benefits to secure Class 4 (pokie) venues with improper conditions".
Three people appeared at the Napier District Court today, charged with a range of offences under the Gambling Act 2003 and Crimes Act 1961.
The charges allege that the defendants, who were in management positions at several community organisations and within the Class 4 gambling sector, abused their positions to fraudulently obtain or misappropriate hundreds of thousands of dollars in grant funding and other benefits.
One pleaded not guilty and two were remanded without plea.
"Criminal networks that operate in a regulated environment such as class 4 gambling, commit this type of offending with full knowledge of the law. They ultimately take away grants from compliant and honest organisations and give the gambling sector a bad name." DIA director gambling Vicki Scott said.
"Prosecutions of this kind help us ensure the integrity and fairness of the gambling system."
The three defendants have been remanded and are due to appear in court over the coming months.
The five remaining defendants have had their cases adjourned until February.
