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DPB claimant bought four properties

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Sun, 20 Feb 2011 9:43a.m.

In 1990, the man bought a house, and then made three further property purchases

In 1990, the man bought a house, and then made three further property purchases

A domestic purposes beneficiary who managed to buy four properties has ended up court for ticking the wrong box on his Work and Income forms.

Lindsay Ralph Cox, 66, has been sentenced to three months home detention on three charges of benefit fraud, at an appearance in the Christchurch District Court, Christchurch Court News reported.

Work and Income will try gradually to recover the $10,492 he was overpaid on his benefit after his guilty pleas. Cox is now retired and on national superannuation.

He became entitled to the domestic purposes benefit in 1986, and agreed to tell the department about any changes of circumstances.

In 1990, he bought a house, and then made three further property purchases. Defence counsel Stuart Poore said he bought them with 100 per cent finance on a rising property market.

Crown prosecutor Kathy Basire said Cox was being asked on his benefit forms, Do you own any property other than the house you live in? He was ticking "No".

The properties were run down and weren't great investments. "You are not an astute property developer," said Judge David Saunders after hearing that one of them had now been sold but very little equity would remain from it.

He accepted the crown argument that community detention - effectively a night time curfew - would not be an appropriate punishment. Ms Basire argued that home detention was better because Cox did go out during the day and it would place a restriction on his liberty.

Judge Saunders noted that health issues made Cox not suitable for community work, and imposed the home detention sentence with a condition that he is not allowed to possess or drink alcohol during that time.

"Home detention will be a clear signal to you and others that liberty will be curtailed in the event there is a fraud on the public purse," he said.

NZPA

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