A New Zealand-based Indian-origin engineer's poker gambling addiction has led to severe financial consequences, not only for himself but also for his former employer company, after he embezzled NZ$1.039 million (approximately Rs 5 crore) through fraudulent means to fund his habit, causing substantial financial damage to the organisation.
According to The New Zealand Herald, 27-year-old Shyamal Shah siphoned off NZ$1.039 million from Watercare, Auckland Council's water utility, while working as a network engineer. He pleaded guilty to obtaining funds by deception and has been sentenced to two years and two months in prison. This case is considered one of the biggest public sector thefts in New Zealand's history. As per police records, Shah created fake invoices under the names "Gardener Construction" and "Ben Gardener", directing payments to his personal bank account. Between July 19, 2023, and November 8, 2024, he processed 40 fraudulent transactions totalling NZ$1,039,146.
The court was told Shah's gambling addiction started at SkyCity Casino Coercion and then escalated after three men approached him and invited him to a residence where private games were held.
Defence lawyer David Jones KC described it as a racket where addicts are targeted and given a significant line of credit before payment is demanded, often through coercion. In Shah's case, the court was told, the defendant was shown photos of another man who had been violently assaulted after they didn't pay.
"Once you're in, it's a very difficult place to get out of," Jones said, explaining that his client had to keep playing to buy more time.
Judge Davenport settled on an end sentence of two years and two months' imprisonment after allowing 55% in discounts for his guilty plea, previous good character, remorse, rehabilitation efforts and his offer to pay the money back.
