Michael McGurk used to be one of the wealthiest people in New Zealand. Now, he seems to have hit rock bottom, after being found guilty of stealing $35 000 in poker machine revenue and being sentenced to home detention and community service. At the height of his success, McGurk was worth $60 million. He owned dozens of clubs, pubs and hotels across New Zealand.
When the economic downturn hit, McGurk really felt the pinch and is development company was liquidated in 2009. That year also saw Hanover Finance take legal action against him for $9 million, and McGurk was forced to sell his home. Since then, it seems as though things have been going downhill steadily.
McGurk was found guilty of one charge of ‘theft by a person in a special relation’, after he had stolen $35 000 from his poker machine proceeds. The money was meant to be allocated to local community organisations, but McGurk used it to pay off trading expenses. In New Zealand, a significant portion of poker machine profits are to be given to local charities and community groups.
They money is supposed to be transferred into a separate account or earmarked for such purposes. However, McGurk took neither of the actions. Instead, he used the money to boost his own business and pay off his debts. He had carried on this way for nine years before the Department of Internal Affairs caught on. Judge Claire Ryan has sentenced McGurk to 100 hours of community service and home detention.
Unfortunately, there is no way for the money to be recovered, because McGurk has declared bankruptcy and has no assets. "Clearly there were account management issues which were significant,” Judge Ryan says. "The community's lost a lot of money and it's irrecoverable."
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