Disgraced ex-cop John Dewar involved in firing from finance company

A former high-ranking police officer jailed for trying to cover up allegations of police rape finds himself embroiled in a new controversy after being fired as the director of a financial company.

John Dewar appeared at a meeting of the Labor Relations Authority this month, accusing his former employer, WeCare Finance, of wrongful termination.

Dewar served as the managing director of the Hamilton-based finance company before being fired in June 2019.

His employer alleges that he illegally misappropriated company funds and has filed a complaint with the police.

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Dewar’s assertions, and his employer’s counterclaims, were broadcast during a three-day hearing, with particular attention to how Dewar ran the daily affairs of WeCare Finance.

Dewar, the former head of Rotorua’s CIB, was jailed for 4 1/2 years in 2007 for trying to cover up alleged sex crimes against former Rotorua woman Louise Nicholas, serving in the police force in the 1980s.

He served 19 months of his sentence before being released on parole.

After his release, Dewar found work in the financial sector and formed partnerships with brokers, car dealers and vehicle repairers.

He used this industry knowledge to help establish WeCare Finance (originally called I Finance Cars and Loans) in 2015 with friends and associates who agreed to act as investors. Some of his friends had provided financial support to Dewar’s family while he was in jail.

The authority heard that to attract business to WeCare Finance, Dewar admitted to paying up to $ 600 in cash or cash checks to people who referred him to loan applicants. Many of the referrals came from car salesmen, but also from people with Winz benefits who were anxious that there would be no record of the cash payments.

“As a guarantee, I promised not to reveal his details that would affect his employment as a car salesman or Winz benefit,” Dewar told the authority.

“From my point of view, I just wanted the deal.”

At other times, applicants would apply directly to Dewar for a loan and would be charged a brokerage fee of up to $ 600. Since there was no outside broker to pay this amount to, Dewar credited the money to his own personal loan account with WeCare. Finance. An independent forensic examination found that $ 18,600 was taken and credited to Dewar’s loan account without the knowledge and consent of the company’s directors. Dewar said he used his loan account as a deposit and that the funds were subsequently paid to those who referred business to WeCare Finance.

“I accept that I was quite liberal with the process because I had control over it,” Dewar told ERA member Robin Arthur.

“I personally was not making any profit. I was under pressure from … the board to get results. I did it in a way that obviously put me personally at risk. “

The same investigation found evidence that company funds were deposited into Dewar’s personal bank account.

The company’s board of directors hired forensic accountant Dennis Parsons to investigate its accounts.

Dewar’s practice of “unconditional” cash payments, where no receipts or documentation were kept, meant WeCare Finance was unable to meet some of its legal requirements, Parsons said.

“What I call the cash society, in many cases they are avoiding income tax and a company that is a licensed financing provider should not risk their business activities supporting people who may be avoiding state taxes.”

When cash funds are in the possession of an employee and no records are kept, it should be considered a “red flag” of possible dishonesty, Parsons told the authority.

Following Dewar’s firing, Parsons expanded his research on WeCare Finance books. He was later ordered to file a complaint on behalf of the company with the police.

Parsons is not sure whether the police have acted on the complaint despite receiving it in May of this year.

“The comments that were made at the time were that there was a lot of backlog work, that they would look into it and they would get in touch with the company,” he said.

WeCare Finance director and shareholder Jim Ellis initially invested $ 200,000 in the company. After six months, that investment grew to $ 2 million as the company experienced rapid growth and needed more funding.

Ellis said the new finance company represented a “great investment” and was also a way to support Dewar.

“[The business] was to give John [Dewar] an opportunity to earn a higher income and potentially improve his financial situation because he had spent so much on defending himself before he was incarcerated, ”Ellis said.

Before his termination, Dewar’s salary was approximately $ 120,000 plus car expenses.

Dewar, a former director himself, said that other directors and shareholders frequently reminded him of the “great service” they were rendering him by putting him in charge of the company. However, they showed little interest in the company beyond its benefits.

“It would feel a bit like I was the dog that was rescued from the kennel, I had to always be faithful to being saved and it wasn’t like that at all,” Dewar said.

“These people did not come to help me. They saw an opportunity to earn money. “

The decision to fire Dewar was made by WeCare Finance Chairman of the Board and Independent Director Peter De Luca.

Dewar’s responses to the accusations against him did not account for the company’s money, De Luca told authorities.

“I certainly believed [his actions] It amounted to a very serious offense and a misappropriation of company money and the dismissal was justified. “

Dewar’s wife, Louise, also testified at the hearing, saying that she and her husband were distraught over Dewar’s firing.

“I guess our concern was whether he would get another job at his age,” he said.

Arthur reserved his determination and will issue it in writing.