A man who once introduced himself to Paul Holmes as an "armed maniac" and is now appealing his sentence for serious fraud offences was "the biggest loser" in his own scam, his lawyer said today.
John Grant Fagan was in the High Court at Wellington today, appealing his 37-month sentence for making false statements, forgery and using forged documents.
He was sentenced last year, but soon after escaped prison.
His lawyer Steve Winter told the court Fagan's offending was not a "cynical attempt to scam money from people for his own gain".
Rather, Mr Winter said, Fagan lost $800,000 of his own money in a scheme "he genuinely hoped and expected would perform".
Fagan was charged in February 2013 and pleaded guilty to offences under the Crimes Act relating to the fraud.
The charges followed Fagan's attempts to promote technology and property companies.
The Serious Fraud Office (SFO) prosecuted Fagan, saying he used false and forged documents that overstated the value or success of the businesses, in an attempt to lure investors.
The SFO said Fagan tried to secure investments of about $4.5 million from various individuals and entities.
Mr Winter told Justice Karen Clark QC the starting point of 46 months for Fagan's sentence was too harsh.
Mr Winter said Fagan's case was different from other recent serious fraud cases involving advertising scams or bogus earthquake insurance claims.
Instead, he said Fagan had built a business, which had serious prospects of success.
"The biggest loser in fact is Mr Fagan and his family interests."
Mr Winter conceded his client was not entirely without fault.
"Some of his communication has plainly and obviously been dishonest."
Prosecutor Grant Burston said the appeal was a "cheeky one" and the sentence should not be reduced.
"Let's not forget that this man was sent to imprisonment and within one month to the day, he escapes from prison," Mr Burston said. Fagan was caught after 24 hours. "The way in which Mr Fagan has approached this, perhaps demonstrating the entrepreneurial flair is to first of all negotiate with the Crown."
Fagan had a slight chuckle at the remark, as he did when Burston suggested "nobody's been cheeky enough to suggest this".
The Court heard more argument about the merits or drawbacks of various sentencing discounts.
Justice Clark compared the issue of sentencing discounts to vouchers.
"The credit has been given --it hasn't been all used up."
The judge planned to issue a written decision soon.
In 1996 Fagan was discovered to have taken $1.2 million from Northcote College, where he worked as finance manager.
He fired a gun at school before fleeing in a stolen car, sparking a manhunt.
The next day Fagan called Paul Holmes on talkback radio, threatening to kill himself. The pair spoke on air for 15 minutes and arranged to meet at Auckland Airport.
Just as Mr Holmes arrived, Fagan gave himself up to police, who took a dim view of the broadcaster's actions.
