Media Release

5 April 2007

Oamaru Rest Home Owner Jailed for Fraud

An Oamaru man has been sentenced to five months imprisonment and ordered to pay $12,500 towards the cost of the investigation after he earlier pleaded guilty to 34 fraud charges, for falsely claiming Government subsidies for a number of patients at a rest home he co-owns.

Peter Balchin, aged 50, pleaded guilty to 34 charges of obtaining by deception in the Oamaru District Court on 13 December 2006, which followed a Ministry of Health investigation by its business unit HealthPAC earlier last year, on behalf of the Otago District Health Board.

Balchin, the co-owner of Southanjer Rest Home was found to have falsified 34 'Proposed Payment Schedules' between April 2004 and September 2005, receiving more than $19,000 worth of subsidies for five people that had already died.

In all of these cases, a false date of death for each of the five patients was later notified by Balchin.

Group Manager of HealthPAC Quentin Wilson says HealthPAC takes a zero tolerance approach to fraud.

"In this case, the defendant abused his position of power, defrauding the Government of more than $19,000. People who choose to flout the law will be found and prosecuted accordingly."

Quentin Wilson says today's sentencing should serve as a warning to other rest home operators to ensure they take time when certifying the 'Proposed Payment Schedule' that all the information contained is up to date, true and accurate.

ENDS

For further information, please contact
Victoria Evans
Media Advisor
Ph: 04 4962036