A Wellington woman’s attempt to exploit the Covid-19 Wage Subsidy Scheme has resulted in a 20-month prison sentence, highlighting the ongoing fallout from pandemic-era fraud. Sariah Wehipeihana, sentenced at Auckland District Court on , pleaded guilty in January of last year to charges related to fraudulently obtaining $28,118.40.
The case, detailed in reports from 1News and the Ministry of Social Development (MSD), reveals a sophisticated scheme involving not only Wehipeihana’s own details but also the identities of ten other individuals, some of whom were deceased. She submitted a total of 32 applications – five successful and 27 unsuccessful – between and , a period of significant economic uncertainty as New Zealand responded to the initial wave of the pandemic.
The Wage Subsidy Scheme, designed to help businesses retain employees during lockdowns and economic disruption, became a target for fraudulent activity. Wehipeihana’s actions demonstrate the lengths to which some individuals went to exploit the system. The funds obtained were reportedly used for personal expenses, including shopping and online gambling, according to court documents.
The MSD has been actively pursuing legal action against those who fraudulently claimed wage subsidies. As of , the Ministry reports that 56 individuals have been sentenced in wage subsidy fraud cases, with a further 48 cases still before the courts. This indicates a sustained effort to hold perpetrators accountable and recover misappropriated funds. To date, over $830 million in wage subsidies have been repaid, a figure that underscores the scale of the scheme and the subsequent need for robust oversight.
This case isn’t isolated. Recent weeks have seen a series of similar convictions. Also on , an Auckland woman received a two-month community detention sentence for fraudulently obtaining over $26,000. Further back, in December 2025, an Auckland man received six months community detention and nine months supervision for multiple fraudulent applications. These cases, alongside others, paint a picture of widespread attempts to defraud the system.
The Wehipeihana case is particularly notable for the inclusion of deceased individuals’ identities in the fraudulent applications. This raises serious ethical and legal concerns, adding a layer of complexity to the investigation and prosecution. The use of such tactics demonstrates a callous disregard for the privacy and dignity of those who have passed away.
The MSD’s commitment to pursuing these cases is evident in its ongoing legal efforts. A case from June 2025 involved a woman, Kirstie Maree Jackson, who received almost $60,000 in wage subsidies and continued to submit applications even while under investigation, going so far as to switch banks to circumvent payment blocks. She was sentenced to nine months of home detention. Another case, from October 2025, saw Bradley Croft sentenced to three years and three months imprisonment for using the identities of eleven people to submit 39 fraudulent applications.
The pursuit of reparations has proven challenging in some cases. In Wehipeihana’s case, a reparation order was sought, but no repayments have been made to date. Similarly, in Jackson’s case, the judge opted not to order reparations, believing it would set her up for failure. This highlights the difficulties in recovering funds from individuals who have engaged in fraudulent activity, particularly when they may lack the financial means to repay the stolen money.
The Ministry of Social Development’s ongoing work to address wage subsidy fraud underscores the importance of robust systems and vigilant oversight in the wake of large-scale government assistance programs. The cases brought to court represent a fraction of the total attempts at fraud and the MSD continues to investigate and prosecute those who sought to exploit the system. The continued legal action serves as a deterrent and a message that such behavior will not be tolerated.
The broader implications of these cases extend beyond the financial losses incurred. They erode public trust in government programs and highlight the need for stronger safeguards to prevent future fraud. The MSD’s efforts to recover funds and prosecute offenders are crucial not only for financial accountability but also for maintaining the integrity of social welfare systems.
