When a Wellington business owner discovered she would never see a cent of $600,000 she loaned to her friend, she collapsed on the floor of her shop suffering a panic attack.

“I was unable to hold down any friendships and struggled to trust anyone. In the early days, I contemplated ending it all.”

The woman had remortgaged her house to give her friend, Rebecca Kennedy, the money under the guise of a joint business venture.

Around the same time, another victim, a widow who loaned Kennedy $350,000 for property investment, also discovered her money was gone.

“She took advantage of my vulnerability, knowing I was grieving the loss of my husband.”

Today, Kennedy was sentenced to six and a half years behind bars, the result of two representative charges of obtaining by deception and theft, after taking more than $1.6 million from three Wellington victims.

She also pleaded guilty to four charges laid by the Ministry of Business Innovation and Employment (MBIE), after concealing property, changing her name and attempting to leave New Zealand while bankrupt.

According to the summary of facts, Kennedy had multiple aliases including Angela and Wendy Bamford, or Angela Saron.

In 2010 she was convicted of fraud in Australia, obtaining A$340,000 from multiple families under the guise of property investment, but spent the money herself on a luxury car and gambling. She was sentenced to five years behind bars and was deported back to New Zealand.

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Rebecca Kennedy appeared before Judge Arthur Tompkins in the Wellington District Court. Photo / NZME

The first victim had known Kennedy for 20 years, but hadn’t been in contact until Kennedy approached her in 2012 asking to borrow money for an investment.

The victim’s husband, who had died two years earlier, had previously warned the victim to stay away from Kennedy but never told her why. The victim said when Kennedy reappeared in 2012, she apologised for what had happened years prior but the woman said she had no idea what the issue was.

Kennedy told her she had inherited money from her dead husband “Roger”, supposedly a criminal lawyer in the Channel Islands. She said she couldn’t access the funds yet, and asked for money.

The victim entered into three loans with Kennedy, with some small repayments made. But it quickly became clear Kennedy couldn’t repay the money, leaving the woman $722,737 out of pocket.

The second victim, a Wellington-based medical professional, met Kennedy as a patient of his practice. She became a family friend, and this victim was also told about the dead husband in the Channel Islands.

The man loaned Kennedy $350,061 without any formal arrangement. Kennedy gave the man $200,000 in cheques - but they weren’t honoured.

The third victim, also a Wellington business owner, became friends with Kennedy as a client of her business. They were good friends and often socialised.

This victim was also told the story of the inheritance left by the lawyer husband, but was also told by Kennedy that she had $200,000 sitting in a shipping container.

Kennedy proposed leasing a Wellington store to set up business with the victim. The victim accordingly remortgaged her house and transferred $653,000 to Kennedy’s aunt. The business never eventuated and the money was never repaid.

In court, the victim in her 30s spoke of her plans to start a family. Her home was debt-free and she and her husband had their lives on track. The fraud destroyed it all.

“At this time we were unable to stick to our plan because of the situation we were in, owing the bank and our family so much money. The burden of interest payments alone was more than I could handle.”

‘Greed to fund a lavish lifestyle’ - judge

Kennedy appeared in court via audio-visual link. As the victims spoke of their pain, Kennedy sat expressionless with her head bowed for the majority of the hearing.

Her lawyer Tony Bamford said there was potentially around $300,000, managed by a United States-based financial adviser, that could mature in the next 18 months.

But Judge Arthur Tompkins said this likely wasn’t believable. “That supposed fund remains as illusive as ever.”

Bamford further asked for a small sentence discount to recognise she doesn’t have family support, except for her children.

Crown prosecutor Rachael Buckman said the breach of trust was a significant aggravating factor. “She gained the trust of these people and made them believe she was a person they could rely on.”

She sought a seven-year sentence starting point, which Judge Tompkins ultimately adopted with a nine-month uplift for the previous offending in Australia.

“The speed with which the defendant then embarked on considered, deliberate and harmful sequential financial fraud is startling,” Tompkins said. He added Kennedy seemingly offended out of greed to fund a lavish lifestyle.

He gave her a 20 per cent discount for her guilty plea. She was sentenced to six and a half years imprisonment, of which she must serve half before being considered for parole.

In a statement, detective Samuel O’Connor said police were pleased with the result.

“This matter has been with police for the past four years. We hope this sentencing will mean that the victims get a sense of justice and can move on with their lives.”

“Police acknowledge that there may be further victims of Ms Walker and would encourage them to report to their nearest station or by entering a report online at 105.police.govt.nz or by calling 105.”

MBIE’s manager of integrity and enforcement Vanessa Cook said she was pleased to see the case come to a close.

“By changing her name, concealing her assets and attempting to leave New Zealand without informing the Official Assignee, Ms Walker either wilfully ignored or actively chose to break the law.”

Ethan Griffiths covers crime and justice stories nationwide for Open Justice. He joined NZME in 2020, previously working as a regional reporter in Whanganui and South Taranaki.