Lindup v Inland Revenue Department HC Nelson CRI 2008-442-000013

The case of David John Lindup versus the Inland Revenue Department was heard in the High Court of New Zealand at Nelson. The dispute centred on the appropriate sentencing of Lindup, who had defrauded the Inland Revenue Department of a substantial sum, and the extent to which Lindup had cooperated with efforts to recover the defrauded funds. The court was tasked with determining whether Lindup had done everything practicable to maximise the recovery of funds to the department, and if so, whether this warranted an adjustment to his sentence.

The court had to decide whether Lindup's cooperation and efforts to repay the defrauded funds warranted a reduction in his sentence. Specifically, the court needed to assess whether Lindup's actions in facilitating the recovery of funds were sufficient to merit a greater sentencing discount than that initially awarded. The court's decision hinged on the information provided by both parties regarding the recovery efforts and the assets available for sale to repay the defrauded amount.

In the supplementary judgment, Wild J found that Lindup had, through his attorneys, done everything reasonably possible to cooperate and assist in maximising the recovery to the department. Despite the challenging market conditions under which the assets were sold, the court was satisfied with Lindup's efforts. Consequently, the court increased the sentencing discount from 27% to 33%, resulting in a revised sentence of 3 years and 8 months imprisonment. The court emphasised the significant loss to the department and the public, but acknowledged Lindup's cooperation in mitigating the impact of his actions.

The court ordered the substitution of the original 4-year imprisonment sentence with a new sentence of 3 years and 8 months imprisonment, reflecting the increased sentencing discount. The court also acknowledged the efforts of both parties' counsel in providing comprehensive memoranda that assisted in reaching the decision.