Hospital board fraudster Harford denies breaching parole

Kerry Harford, at his sentencing in the High Court at Dunedin, in March 2009.
Kerry Harford, at his sentencing in the High Court at Dunedin, in March 2009.
One of the men found guilty of defrauding the Otago District Health Board in 2009 denied two charges of breaching his probation when he appeared in the Queenstown District Court yesterday.

Kerry Gray Harford (51) was sentenced to three years and four months' jail on March 11, 2009, but was released on April 26, 2010, three days after he became eligible for parole.

He had served one year and six weeks in prison, as well as several months before that, while remanded in custody.

Harford and former board chief information officer Michael Swann were found guilty of defrauding the board of almost $17 million.

Yesterday, Harford, appearing before Judge Dominic Flatley, denied one charge, dated June 20, related to moving from his address without written approval from the Community Probation Services. He also denied a charge, dated June 21, of beginning employment without notifying probation services.

Harford, representing himself, said a probation officer was aware of the changes and had given permission on July 4.

He had been bailed to an address in Queenstown, but was "continuing to work in Christchurch during the week", returning to Queenstown every Friday.

The probation department reported it was not aware of permission being sought or granted, but after a brief adjournment, permission was confirmed.

In addition to his Queenstown bail address, Harford listed a camping ground at Riccarton.

He was remanded on bail to reappear on July 25.

Swann and Harford, a Queenstown surveyor, sent 196 invoices from Harford-owned companies to the board for computer-related services which were never provided and received payments totalling $16,902,145.27.

Harford retained 10% and forwarded the remainder to Swann-linked companies or entities.

Harford reached a confidential settlement with the board before the trial began. Swann was sentenced to nine years and six months in jail, with a minimum non-parole of four years and six months.

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