A Dunedin man's ''sordid'' affair has ruined his marriage, destroyed his family's financial security and caused his defrauded wife to question the past decade of her life.
The former financial and insurance adviser and his one-time mistress were jailed yesterday for their parts in a fraud which resulted in the sale of the man's family home and the loss of his wife's retirement fund.
The pair were jointly charged on seven counts of fraudulently using a document.
The 52-year-old man was charged on two further counts of forgery and the 35-year-old mistress was charged with blackmail.
Judge Michael Crosbie jailed the woman for four years for her ''extraordinary'' blackmail and the man for two years and three months.
The man's wife told the Dunedin District Court she knew ''nothing, absolutely nothing'' of her husband's ''double life'' until September last year.
She received a phone call from the mistress' mother after police arrested the woman.
''The whole sordid story started to unfold,'' the wife said during her victim impact statement.
''This phone call was all about revenge to ensure if she was going down, she would take the whole family with her.
''For 10 years, [he] had shown no signs of his double life. He was calm, casual and slept soundly.''
The man's ''despicable lie'' had cost his wife her savings of $78,000 - as he had forged her signature to access funds - and the family its home - as he extended the mortgage to fund his payments to the blackmailing mistress, the wife told the court.
''I was appalled at what had been happening under my nose,'' she said.
''[He] had stolen all my money - 27 years of careful saving.
''How low can you go to steal from one's wife?''
The man and the mistress met online in 2005. She travelled to Dunedin and a sexual relationship began between the pair, a summary of facts said.
After returning to her North Island home, the 35-year-old woman discovered he was married, and began blackmailing him, threatening to reveal the relationship to his family.
She felt guilty and handed herself into police in 2010.
As a result, she was charged and convicted in the High Court of extorting almost $250,000 from the man and sentenced to 12 months' home detention.
As the 52-year-old was the victim in the 2010 case, and informed the court he wished to keep the affair from his family, he was granted final name suppression.
Judge Crosbie said the pair were not granted name suppression in relation to the recent offending, but the man cannot be named because of his existing suppression.
Crown solicitor Robin Bates indicated after the hearing he intended to fight to have that suppression quashed.
Judith Ablett-Kerr QC sought interim name suppression for the mistress so an appeal against naming her client could be filed.
Judge Crosbie granted the woman interim suppression until 4pm today.
Despite the woman serving home detention for her previous offending, the blackmail resumed in July 2011.
To fund the blackmail, the authorised financial adviser completed 122 false insurance policy application forms and collected more than $300,000 in commission from seven insurance companies - some of which was used to cover up the fraud.
He paid his former mistress $187,036 to keep the affair from his family.
After he deposited the money into his mistress' bank account, he cancelled the insurance policies.
She used the money to pay bills and feed herself. She also had a gambling habit and was desperate for money, the facts summary said.
Andrew Dawson, counsel for the man, said his client did not benefit financially from the fraud.
''He has lost everything, including his business,'' Mr Dawson said.
''He has lost his family and the future that lay before him.''
After the family's debts were paid off, $24,000 remained, and he ''effectively gifted'' this money to his wife, Mr Dawson said.
His wife told the court she felt like the ''cash cow funding his double life''.
''I remember screaming at [him] `I want my money back, where is it?' and him replying without any emotion or remorse that `it was gone','' she said.
''I have cried until I can cry no more and my family have cried with me.
''These past months have involved terrible grieving.
''Fancy finding out your husband answered an advertisement online for sex.''
She believed their home was almost mortgage-free and left her previous job because of the financial security she believed existed.
''[He] made no effort to stop me.''
The wife delivered a message to the pair.
''I can't get my head around the evil that has been done to this family,'' she said.
''There can be no forgetting and no forgiveness. Our marriage is over.
''I thought he would be loyal and faithful. Unfortunately, I was wrong.
''For you ... this is payback time. I want my stolen earnings back. Damn you .. damn you both.''
The man's two daughters, both in their 20s, also condemned his behaviour, with one saying she did ''not see him as my father''.
''You absolutely crushed the world around us and left me feeling utterly betrayed,'' her victim impact statement said.
''I will never be able to forgive him for what he has done to us.''
His other daughter said his ''selfish and disgusting'' actions had put the family's lives on hold.
''The stress and pain of it has made me both mentally and physically exhausted.''
Judge Crosbie also ordered the man pay reparations of $150,000 to his wife.
