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'Living well beyond their means': Jury asks why rest home fraudster's wife wasn't charged

Author
Lane Nichols,
Publish Date
Thu, 23 Mar 2023, 4:54pm
Duncan John Napier and his wife Sara worked at Torbay Rest Home when Duncan Napier defrauded the company in offending spanning seven years. Photos / Dean Purcell, Supplied
Duncan John Napier and his wife Sara worked at Torbay Rest Home when Duncan Napier defrauded the company in offending spanning seven years. Photos / Dean Purcell, Supplied

'Living well beyond their means': Jury asks why rest home fraudster's wife wasn't charged

Author
Lane Nichols,
Publish Date
Thu, 23 Mar 2023, 4:54pm

A jury who convicted an Auckland businessman of stealing at least $600,000 from a North Shore rest home, then destroying financial records to cover his tracks, asked the judge why the man鈥檚 wife was not standing beside him in the dock.

Justice Timothy Brewer told the jury that sometimes there were 鈥渕ysteries鈥 in trials, but in this case police decided not to charge the wife with any offence.

Duncan John Napier was jailed for four years and 10 months in October after being found guilty of听听following a two-week criminal trial in the High Court.

罢丑别听Herald听飞补蝉听听Napier last week after the Supreme Court rejected an application by his most recent employer - a land development company - to permanently听suppress his name听to protect the company鈥檚 reputation.

Napier was convicted of systematically defrauding Torbay Rest Home in offending spanning seven years during his time as the home鈥檚 administration manager until his crimes were uncovered in 2012.

His wife Sara Ann Napier was employed as the nurse manager but abruptly departed her position about the same time as her husband. She is now a lecturer at AUT鈥檚 nursing department.

She was reprimanded in 2018 for failing to enquire into why millions of dollars were being misappropriated from the rest home, and found personally liable for some of the money by a High Court judge.

After Duncan Napier鈥檚 fraud was uncovered, the rest home鈥檚 directors carried out an audit of financial records. It revealed that the couple had received hundreds of thousands of dollars in salary overpayments.

Rest home cheques had also been used to pay personal expenses associated with the couple, including Sky subscriptions, school fees and gym memberships, and third-party contractors working on the Napiers鈥 luxury new-build home near Matakana.

The rest home company took successful civil court proceedings against the couple and their family trust in 2015. A decision by Justice Woolford found Duncan Napier overpaid himself and his wife $281,087.01, and that he had personally received at least $1,459,323.81.

The decision also found Sara Napier was personally liable for $720,310.53 in salary overpayments and unauthorised payments 鈥渉ad and received鈥. But unlike her husband, Sara Napier was not found to have misappropriated any money.

In 2018, Sara Napier was brought before the Health Practitioners Disciplinary Tribunal (HPDT) on four charges of professional misconduct relating to the rest home case.

Rest home director Mike Single said Sara Napier had benefited from her husband鈥檚 fraud and he was surprised she did not face charges.

鈥淚t will always stand as a challenge to understand why she was not called to account and required to defend her conduct in criminal proceedings.鈥

Duncan John Napier was jailed for four years and 10 months after being found guilty of 45 fraud charges in the High Court at Auckland. Photo / Michael Craig

Duncan John Napier was jailed for four years and 10 months after being found guilty of 45 fraud charges in the High Court at Auckland. Photo / Michael Craig

Documents obtained by the听Herald听show counsel for the Professional Conduct Committee (PCC) argued the Napiers had been 鈥渆vasive and uncooperative鈥 during the rest home鈥檚 investigation, refusing to provide core documents.

Sara Napier had repeatedly claimed her husband 鈥渕ade a mistake鈥.

They had both denied any wrongdoing and claimed all the payments were 鈥渓egitimate reimbursement鈥 for rest home expenses.

The documents show Sara Napier applied to have the High Court civil findings excluded from the HPDT case. But her application was thrown out by the tribunal, which said the findings were directly relevant to her conduct as a nurse and the charges she faced.

The PCC counsel stressed that the earlier civil judgment had not found that Sara Napier knew of the unauthorised payments, but the tribunal later found she ought to have known.

An audit of banking records showed that money received by the couple or third parties under their control 鈥渨ell exceeded their gross combined income鈥 from the rest home.

Duncan Napier was a successful real estate agent working for Bayleys when two civil court decisions in 2015 and 2016 found he had earlier 鈥渕isappropriated鈥 more than $1 million during his time at the rest home.

Duncan Napier was a successful real estate agent working for Bayleys when two civil court decisions in 2015 and 2016 found he had earlier 鈥渕isappropriated鈥 more than $1 million during his time at the rest home.

Their sprawling Matakana property, estimated to have cost $1.425m to build, was described as 鈥渓arge and quite opulent鈥.

Indeed, the 2015 High Court judgment said it was 鈥渙bvious that Mr Napier and his wife were living well beyond their means鈥.

A HPDT finding in 2018 reprimanded Sara Napier for failing to inquire into the misappropriation of millions of dollars from the rest home while she was nurse manager.

Though it could not find any direct evidence that she knew the money had been misappropriated, it said she 鈥渙ught to have known鈥 an 鈥渆xcessive鈥 sum was being 鈥渕isappropriated for the benefit of her and her family鈥 and was thus unavailable for the benefit of the rest home and its residents.

听鈥淚t was the tribunal鈥檚 assessment that the level of knowledge was wilful and reckless and she failed to make enquiries that an honest reasonable person would make,鈥 the decision said.

Sara Napier was found 鈥渘egligent in her management and understanding of rest home finances鈥, amounting to malpractice and bringing discredit to nursing. The other charges were not made out.

She was censured, ordered to pay $31,000 in costs and subjected to a year鈥檚 supervision.

Duncan Napier, meanwhile, went on to become a successful real estate agent with Bayleys before quitting the profession in 2017. He was charged by police in 2018 and his criminal case was eventually heard in August last year.

On day two of the trial, the jury asked the judge why Sara Napier was not part of the case.

Justice Timothy Brewer declined to grant the man suppression, saying the public had a right to know about the offender's extensive dishonesty. Photo / 九一星空无限

Justice Timothy Brewer declined to grant the man suppression, saying the public had a right to know about the offender's extensive dishonesty. Photo / 九一星空无限

Justice Brewer consulted with defence and prosecution lawyers in chambers before telling the jury that sometimes there were 鈥渕ysteries鈥 in trials and that in this case, police never charged Sara Napier with any offence.

罢丑别听Herald听asked police and Crown Law whether they considered charging her alongside her husband.

A spokesperson said police carried out a thorough investigation into a 鈥渧ery complicated fraud matter鈥 spanning many years.

Police had to make prosecution decisions based on the Solicitor General鈥檚 guidelines.

鈥淭his matter has now been dealt with by the court.鈥

Sara Napier did not respond to requests for comment.

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