Fraudster Joel Morehu-Barlow jailed for 14 years for stealing $16m from Queensland Health Tony Keim, Courier Mail March 20, 2013 12:00am FAKE Tahitian prince Joel Morehu-Barlow looked far from the jet-setting, playboy persona his frauds had bankrolled when he was yesterday sentenced to 14 years in jail. He stood in the dock of Brisbane District Court 25 dressed in a dapper black suit - but it was not one of his trademark Louis Vuitton numbers. And he wore on his face the type of defeated acceptance that his future would be a bleak one locked up in a Brisbane jail cell, rather than that of Tahitian royalty or the Maori prince he falsely claimed to be. Today he will be dressed in drab brown prison-issue attire on suicide watch as he awaits processing and classification before transfer to the prison he will call home until he is eligible for parole in December 2016. Hohepa Hikairo "Joel" Morehu-Barlow, 38, has already served more than a year behind bars in pre-sentence custody since being caught - and later pleading guilty - to one of the greatest frauds committed against the Queensland taxpayer, embezzling more than $16 million. He committed the fraud while working as a manager for Queensland Health between September 2007 and November 2011. He yesterday pleaded guilty to numerous charges, including swindling Queensland taxpayers of $16,690,067.59. The charges include two counts each of falsifying a record and fraud, with a circumstance of aggravation that he was an employee who took more than $30,000, and one each of uttering a forged document, possessing a dangerous drug, drug utensils and a "relevant substance". Prosecutor Todd Fuller, SC, yesterday said Morehu-Barlow rose through the QH ranks from September 2005 after falsely claiming he held a NZ law degree. He was appointed to "higher finance positions" and siphoned QH funds - via 62 transactions over four years - into his own dummy company, Health Initiatives and Choices. Over a three-year period from September 2008, Morehu-Barlow deposited $5.61 million earmarked for QH's Filling the Gap Program, to provide dental services to the disadvantaged, into a Commonwealth Bank account he controlled.

On November 17, 2011, $11 million was transferred into the same bank account from funds set aside for a North Queensland university for a similar dental program. Mr Fuller said about $4.5 million of taxpayer funds had not been recovered. The popular socialite frittered away a total of $6.16 million on his Moray St unit, $600,000 in cash withdrawals, $1.13 million on travel and accommodation, $636,740 on Louis Vuitton products and more. Barrister David Shepherd, for Morehu-Barlow, said apart from the amount and ease with which his client obtained the money - the fraud conducted by his client was quite straightforward. "It was a simple fraud that involved an exceptional amount of money," he said. Mr Shepherd said his client only came unstuck when a mid-level QH staffer did a simple computer check that revealed the company receiving fraudulent funds was in Morehu-Barlow's name. Mr Shepherd said his client was the oldest of six children and was subject to childhood abuse by his alcoholic father. The court also heard Morehu-Barlow had previous criminal convictions for "dishonesty" offences committed in New Zealand. Judge Kerry O'Brien, in sentencing Morehu-Barlow, said a cumulative prison term of 14 years was warranted due the magnitude of the fraud.

Questions: (a) From the information provided in the article, explain briefly how the fraud actually worked. (2 marks)

(b) Briefly explain what the fundamental control problem was with Queensland Health. (2 marks)

(c) Explain briefly two controls that you might suggest to avoid this fraudulent situation happening again. (4 marks)

(d) For each suggested control, explain whether it is preventive, detective, and/or corrective in nature