TONY WALL
Beneficiaries of a family trust plundered by a Hamilton accountant have been told not to expect any disbursements for at least a year. Gary William Soffe, 52, siphoned at least $4 million from the trust and associated entities over several years to fund a luxury lifestyle, including a mansion south of Hamilton.
He pleaded guilty in the Hamilton District Court to charges of theft by a person in a special relationship and false accounting dating back to 2006. Last week the Star-Times revealed Soffe's fraud could be bigger, but he had destroyed documents relating to transactions prior to that date.
Visitors to his mansion, which is now for sale, noticed files from a box marked "trust 2" were being burnt in an outdoor fireplace. The Star-Times has learnt that beneficiaries of the "number two" trust include descendants of a family which the wealthy benefactor had taken under his wing.
The benefactor died about 10 years ago and his widow died last year, leaving their daughter as the sole heir. It is understood Soffe pocketed the proceeds of the sale of the widow's house when she moved into a rest home.
Members of the other family would receive payments, usually around $1000 a year, and would deal with Soffe directly.
Despite discovering Soffe's fraud in early February, the law firm acting for the trust, McCaw Lewis of Hamilton, did not notify the beneficiaries of the number two trust until after the Star-Times called asking questions the week before last. The firm did not tell police about the fraud for three months.
On May 25, McCaw Lewis director Don Shirley wrote to the beneficiaries informing them that an investigation carried out by a forensic accountant had identified misappropriations from the trust and related entities in excess of $4m.
"Today we have been contacted by the media," Shirley wrote. "By unidentified sources the media have been alerted to the matter. We anticipate intense media coverage. Hopefully you will receive this letter before the matter is publicly reported."
Shirley told them restitution by way of sale of assets formerly owned by Soffe and his wife will take "some time" and "may or may not cover all of the losses suffered". He said the trustees would be in a position to assess matters more clearly around March of next year.
"The direct consequence to you of Mr Soffe's criminal actions is that the trustees will not be in a position to make any distributions for the financial year ended 31 March, 2011."
Asked why McCaw Lewis had not informed the beneficiaries earlier, Shirley said: "It's a private matter, it involves a family, it doesn't involve the media."
A beneficiary of the trust told the Star-Times that Soffe had continued to make disbursements, including last year. But they always thought it was odd that Soffe's secretary said she could not answer any questions relating to the trust as only Soffe dealt with it.
Soffe will be sentenced in July.
- Sunday Star Times
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