Finau Heuifanga Vea was convicted of embezzling more than $70,000 pa’anga from her employer, Five Star Finance in 2015. The judge found the accused was involved “in a clear pattern of deceit” by diverting loan funds into third party accounts over a period.

From April to October 2015, at Havelu while working as a loans officer, the accused dishonestly converted to her own use the money she received on behalf of Five Star Finance. The court found that before she was arrested she had admitted a debt to her employer of $115,497.80.

The accused, as a loans officer, had completed loan agreements for clients that were approved by her principal. But the funds were not deposited to the customer's accounts.

The judge stated that cheques should have been made out to customers or deposited into their account, or cash payments made directly and receipted. There was no evidence in the case that might explain why cheques had been made out to third party accounts and the proceeds withdrawn soon after.

“It seems likely also that others assisted to implement this fraud.”

The judge stated that the agent in this case was a woman by the name of Mele Losi Finau. “I was advised that she has left Tonga.”

Hon. Mr Justice Cato in his verdict on April 26 said much of the evidence was documentary exhibits, consisting of loan agreements together with ancillary documentation such as cheques and in some cases repayment schedules contained in books that recorded bank statements.

The principal Crown witness was Timote Ueara known as Koba, who had been a loans officer for several years with the complainant, Five Star Finance. He also worked with the accused for several years and was familiar with her signature and handwriting, which he identified in various material ways.

34 transactions

“His evidence explained the various loan transactions of which about 42 were admitted into evidence. In all, I was advised by the prosecution that 34 agreements fell within the period of the indictment representing $79,750, falling short of the sum charged in the indictment in as $115,497.80,” said the judge.

"There were a number of other agreements, which fell into a similar pattern, but they were outside the indicted period and so I adopted the lesser of the two sums reflecting 34 transactions within the indictment period,” he stated.

“I am satisfied also after hearing evidence from Kobi that the accused was responsible for the loan agreements, the production of a cheque to meet the Lender's obligation to the borrower, and later it was, in practice, her responsibility to ensure that repayments were being made.

On most of the documentation of relevance, Kobi was able to identify the signature or writing of Mele Losi Finau as agent and the accused.

“In each case, I am satisfied that the cheque intended for the borrower was applied pursuant to the direction of the accused into a bank account with the ANZ that did not belong to the borrower. No evidence was adduced in the case which would suggest that any cheque or its proceeds ever reached the hands of the borrower.”

The court found that the cheques were paid into one of three accounts all with the ANZ; one belonging to Meli Losi Finau (the agent) and Viliami Finau. However, most of the cheques were paid into the account of  Mekinolia Inoke or Filisita Vaiangina. In every case, within a period of about 24 hours the proceeds of the cheques were withdrawn by ATM. Deposits and withdrawals in these accounts related to cheques paid in pursuant to a direction of the accused.

“I did not hear any evidence from or concerning Inoke or Vaiangina. I do not know who was responsible for the withdrawals but I infer that either these persons withdrew the money or made available their cards and ATM number for the accused to withdraw the proceeds of the cheques,” the judge stated.

“The Crown has evidenced, in my view beyond any reasonable doubt that the accused was involved in a clear pattern of deceit in the implementation of the loan agreements during the period of the indictment.”

"The fraud was relatively simple, although for a considerable period of time the accused was able to conceal her dishonesty from her principal, no doubt because she was a trusted senior loans officer and had been in employment with the lender for several years."

The accused had also admitted a debt to her employer.

“Of considerable importance also, is the fact that before she was arrested she entered into a written agreement with a principal of Five Star to repay $115,497.80 which she acknowledged to be a debt owing by her. This debt was guaranteed by a third party. She repaid about $10,000 before default was made and a complaint followed leading to these proceedings.

“In my view, this agreement sensibly supports the inference that the accused admitted responsibility for the losses, which in my view are attributable to her fraud.”

The accused was acquitted of a third charge of false accounting.

She was then remanded in custody for sentencing at the Supreme Court in Nuku'alofa, for her conviction on the embezzlement charge.