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A security company that looks after emergency housing motels in Rotorua, and its sole director, have been found guilty of misconduct by a licensing authority.

Its findings included that Raymond Deane engaged two security guards - who he knew were linked to gangs - without proper licences and let them keep working after their licence applications were declined.

It also found Deane - locally known as Tiny Deane - had “deficiencies” in his management of security company Tigers Express Security Limited.

He and Tigers Express were found to have breached the Private Security Personnel and Private Investigators Act 2010 and his “failures and misconduct” meant he was “not suitable to be the managing director and sole officer of a security company”.

The findings are set out in a Private Security Personnel Licensing Authority decision released publicly on Monday.

The authority’s decision followed a complaint received in March 2022 under the Act.

Deane is chief executive officer of Visions of a Helping Hand, which has social service contracts with the Ministry of Housing and Urban Development to run emergency housing motels in Rotorua. He is also the sole director of Tigers Express Security Limited - a company that employs up to 50 security guards who work at the motels.

The decision said Deane did not think he needed a licence when he first started employing security guards under Visions as he understood they were “in-house security”.

Once the ministry made it clear security guards needed to be employed by a security licence holder, Deane “incorporated Tigers Security and applied for a licence”.

“He advises Tigers Express was set up as an arm of Visions and therefore he thought it was appropriate for Visions to continue to employ the security guards even though the licence was held by Tigers Express.”

The ministry issued a directive in May 2022 that social service providers of emergency housing could not be security providers. Deane then separated the security company from Visions and changed its name to Tigers Express Security Limited.

The authority had to rule whether Tigers Express Security Limited breached the Act by trading as “Tiger Security”.

It concluded that while Deane might not have acted intentionally, he was “negligent” and it raised questions about whether he was suitable to be managing director of a security company.

The decision said Deane accepted he made the decision to engage two security guards “knowing they had gang affiliations” and were not licensed. They were also employed by Visions for several months after their Certificates of Approval had been declined.

Deane told the authority’s investigators both security guards no longer worked in security after their certificates were declined, which was incorrect. The finding said he later “changed his story” by saying he continued to employ one of them because he could see merit in him and he was a high performer.

The authority ruled Deane therefore intentionally breached the Act.

The authority needed to determine whether “Tigers Security” and Deane were a party to Visions providing security services without a security licence. It ruled Deane’s actions were either intentional or negligent.

It found Deane failed to understand or follow the contract he signed with the ministry and the clear advice given to him as to his responsibilities as an officer of a security licence holder. He also failed to take appropriate steps to understand his responsibilities as the manager of a security business.

The decision noted it was a concern that Deane was the sole company officer and manager of Tigers Express and also the chief executive of Visions.

“This is in conflict with [the ministry’s] stated requirement for a clear separation between the social support services to clients and that of the security services.”

The decision noted emergency housing work was expanding “exponentially” in 2021 and it would have been difficult for Deane to keep up.

“It is incomprehensible given the pressures Mr Deane was under with a more than full-time job of being the chief executive of Visions that he took on another full-time role as managing director of a security company. That is particularly the case when the [ministry] contract specifically required a separation between the security work and the emergency housing and social work services,” the decision said.

The decision said the pressure of running both businesses and the public scrutiny no doubt resulted in Deane’s mistakes.

“From the time Tigers Express applied for a company security licence, Mr Deane has failed to understand and comply with all his responsibilities as a security business owner and manager. He either did not read or failed to comprehend the clear advice and guidelines with which he was provided.”

It found no evidence Deane consistently sought advice from agencies he believed to be experts as he claimed.

The decision said: “Deane’s failures and his misconduct are sufficient to establish that he is not suitable to be the managing director and sole officer of a security company.”

The decision said the security company was the only provider of security guards for Visions’ emergency housing motels and cancelling or suspending Tiger Express’ licence immediately would have serious consequences for staff and clients.

It, therefore, put off making a final decision on the appropriate penalty until after August 20 to allow Deane time to either rearrange, sell or contract out the security business currently run by Tigers Express.

It said it was likely to suspend or cancel the licence unless Deane could provide evidence he was no longer involved in managing its security work, among other conditions.

Deane’s bid to get name suppression failed.

Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.