Lawyer falls for scam, found guilty of fraud

A senior Rotorua lawyer and Maori trust chairman has been found guilty of fraud in a case in which he was deceived by an African loan scam.

Last night a jury found John David Rangitauira, 59, guilty of obtaining by deception bank loans as well as funds from a trust under his control in the Rotorua District Court.

The charges were brought following a Serious Fraud Office (SFO) investigation.

Rangitauira obtained more than $840,000 in loans from Westpac - purportedly for ''overseas property transaction'' - as well as funds from Te Houoterangi Trust, of which he was a trustee, chairman and solicitor.

In fact the funds were to be used in an attempt to raise the fees for a client, Jennifer Taukamo, who told Rangitauira she needed an advance to get her hands on a US$22.3 million ($28.1m) inheritance being held Central Bank in Burkina Faso.Lawyer

In return he was promised a US$5.3 million cut of the inheritance.

Earlier this week the court heard how Rangitauira and Ms Taukamo went to Amsterdam to try to claim the money but came away with nothing.

Ms Taukamo told the court she received emails from the Central Bank of Burkina Faso and was led to believe the money had come from her late mother's lover, prompting her to contact Rangitauira for help.

''As is typical of advance fee frauds, there was no inheritance and all of the money sent overseas was lost,'' the SFO said in a statement, adding that the funds went to ''various overseas parties involved in an advanced fee fraud''.

SFO Chief Executive Adam Feeley said Rangitauira held a position of trust and respect within the community, which he took advantage of to the detriment of his victims. 

''It has been a challenging investigation given the position he held, but we are pleased that decision of the Court vindicates our decision to bring this prosecution.''

The SFO opened its investigation into Mr Rangitauira in February 2009 and laid charges in September 2010.  He is due to appear in the Auckland District Court on 16 December 2011 for sentencing.

The charges related to a period of between April 2005 and February 2008.

Rangitauira's lawyer had earlier told the jury it would become clear the accused was himself systematically defrauded and deceived.

Nick Paterson, the SFO's fraud and corruption manager, said it appeared the lawyer was completely taken in by the West African scam.

''He genuinely believed that there was an amount of money in Burkina Faso, genuinely believed that he would be able to gain a portion of that money and he was taken in hook, line and sinker.''

The investigation had been tricky both because of Rangitauira's position in the community, but also because the fraudster himself clearly appeared to be a victim, Paterson said.

''His position in the community both as a lawyer, but also as a trustee within the trust in question, meant that there were a lot of conflicts of interests for all the interested parties, who supported each other on different levels. You combine that with that fact that not only was Mr Rangitauira stealing, but he was also a victim himself, so he had conflicts within himself''.

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