Court documents show MSD charged Bolot with offences they say he committed from April to September in 2020.<\/p>\n
The fraud charges carried a maximum penalty of seven years\u2019 imprisonment.<\/p>\n
The first charge alleged Bolot used an online application form in the name of Best Telecom NZ Holdings Limited to dishonestly obtain $7029.60 of wage subsidies.<\/p>\n
MSD alleged other payments ranging from $2343.20 to $42,117.60 were dishonestly obtained.<\/p>\n
The total in those 17 charges was $220,556.80.<\/p>\n
In new charges filed last year, MSD claimed Bolot also made some attempts in September 2020 to get more funds for his companies paid into a New Zealand-registered ANZ bank account.<\/p>\n
In some of the charging documents, Bolot was said to have listed specific employees in his requests for Covid money.<\/p>\n
One of them is now listed on Companies Office records as a resident of Paradise Point on the Gold Coast.<\/p>\n
Another of the people named as an employee was a co-director who appeared to be in Nundah, Queensland.<\/p>\n
An Auckland-based lawyer for Bolot who was his representative in 2023 has been approached for comment.<\/p>\n
There was no answer when calling Best Telecom Group\u2019s listed New Zealand landline.<\/p>\n
Inland Revenue said it could not comment because of Tax Administration Act secrecy provisions.<\/p>\n
The Serious Fraud Office said it was not involved in the case and police referred queries to MSD.<\/p>\n
One legal source said it seemed unusual for someone with an active warrant to be in Australia for more than three years without anybody taking steps to extradite him.<\/p>\n
The highly experienced lawyer said the prosecuting agency seemed to be doing nothing, even though the case was clearly in the public interest.<\/p>\n
The source said extraditing someone from Australia was a relatively simple process.<\/p>\n
The Herald has been asking MSD questions about the case since Wednesday.<\/p>\n
Callaghan loan, liquidation<\/p>\n
In a separate issue, the Ministry of Business, Innovation & Employment (MBIE) said Bolot also received a loan of $350,200 on January 21, 2021, from now-defunct Callaghan Innovation.<\/p>\n
The balance, including interest, was now at least $405,197.35.<\/p>\n
Nine days after getting the Callaghan Innovation loan, Bolot was in a news story saying he was in Australia and believed fraudsters had used an \u201celaborate scam\u201d to steal his Audi Q5 from the Pullman Hotel.<\/p>\n
He at that time told the Herald he\u2019d been unable to access the car since March 2020 because Covid-19 had prevented his re-entering New Zealand.<\/p>\n
The Callaghan Innovation loan was given to NZCN 1664163 Limited, previously known as Best Telecom NZ Limited, in liquidation.<\/p>\n
On the Companies Office site, Bolot is the company\u2019s only listed active director, and had an address listed in Hope Island on Queensland\u2019s Gold Coast.<\/p>\n
The company was described as a \u201ccommunication service (wireless) \u2013 including telephone service, except radio and TV broadcasting\u201d.<\/p>\n
Diana Loughnan, MBIE head of innovation and business capability, said the ministry had filed its claims with the liquidator.<\/p>\n
\u201cWe can also confirm that there were multiple attempts to contact Mr Bolot. However, once liquidators were appointed, MBIE ceased contact. This communication related to the company defaulting on its loan and formed part of the standard process in such situations.\u201d<\/p>\n
Loughnan added: \u201cWe acknowledge that sometimes these companies go into liquidation due to unforeseen circumstances. In order to recover the money, creditors usually file liquidation applications in court.\u201d<\/p>\n
She added: \u201cAfter an insolvency practitioner is appointed by the court, it then proceeds to realise the assets of the company to pay the creditors.\u201d<\/p>\n
MBIE said it was unaware of the District Court criminal charges Bolot faced, but confirmed the loan was provided before the charges were laid.<\/p>\n
Kristal Pihama and Leon Francis Bowker of KPMG were appointed as liquidators of the company on May 22 this year.<\/p>\n
The company was incorporated in 2005.<\/p>\n
Liquidators said that after the disestablishment of Callaghan Innovation, the company was placed into liquidation for failing to meet obligations to Callaghan Innovation.<\/p>\n
It said those obligations comprised overdue loan repayments together with associated penalties and interest.<\/p>\n
\u2018Poor health\u2019<\/p>\n
\u201cThe director informed the liquidators that he is based in Australia and of poor health, limiting his ability to engage at this stage,\u201d the liquidators\u2019 first report said.<\/p>\n
\u201cWe have requested an official meeting with the director and are awaiting confirmation of an appropriate time, given his health constraints,\u201d liquidators added.<\/p>\n
\u201cThe liquidators contacted Inland Revenue to request information regarding the dispute that the director mentioned during our phone conversation. We also confirmed the total debt owed to Inland Revenue.\u201d<\/p>\n
Neither KPMG nor Inland Revenue has publicly disclosed how big or small that IRD debt is.<\/p>\n
\u201cWe have requested information from the director in the form of financial statements and the director questionnaire. However, we are yet to receive this information.\u201d<\/p>\n
Liquidators in a report in June this year said the company had total liabilities of $574,256.<\/p>\n
Creditors listed in that report were Inland Revenue and MBIE, but not MSD, which dispensed Covid wage subsidies.<\/p>\n
The Work and Income Covid-19 wage subsidy search showed $217,917.60 was given in subsidies and subsidy extensions to Best Telecom NZ Limited, Best Telecom Group Limited, and Best Telecom NZ Holdings Limited.<\/p>\n
The first of those three companies is now the one in the KPMG liquidation.<\/p>\n
In the second, Bolot is one of three shareholders.<\/p>\n
Another liquidation<\/p>\n
The third, Best Telecom Holdings NZ Limited, became known as NZCN 6299910 Limited and entered liquidation in August 2021.<\/p>\n
Bolot was one of two directors at the time of the liquidators\u2019 initial report in September 2021.<\/p>\n
\u201cThe company was formed to participate in an IPO project,\u201d liquidators said.<\/p>\n
\u201cA director has advised it never traded, was formed to hold some assets in New Zealand. This did not proceed.\u201d<\/p>\n
A creditor had loaned money to the telecom company and when this was not repaid and discussions broke down, an application for liquidation was made to the High Court.<\/p>\n
The liquidators added: \u201cThere are no known legal proceedings to which the company is a party; however, the liquidators are aware of an investigation being undertaken by the Ministry of Social Development and will assist with their inquiries.\u201d <\/p>\n
At that stage, liquidators said the company owed MSD $140,592 and owed $20,000 to Inland Revenue for a small business loan. Liquidators said it owed trade creditors $152,566.<\/p>\n
Five months later, the liquidators\u2019 final report said: \u201cThere have been no funds received and no payments made.\u201d<\/p>\n
However, that report also said liquidators reviewed the actions of the directors, checking for any potential breaches of the Companies Act 1993, and nothing of benefit to creditors arose from that.<\/p>\n
Where has Callaghan Covid money gone?<\/p>\n
MBIE said the Covid research and development loan scheme was a $150 million Government initiative launched in 2020.<\/p>\n