Former Covid Response Lead Jailed for Stealing $1.8 Million in DHB Pandemic Funds
PALMERSTON NORTH, NEW ZEALAND — December 2, 2025 — Alister Thorby, a former employee tasked with a critical role in the Capital and Coast and Hutt Valley District Health Boards’ (DHBs) Covid-19 response, has been sentenced to two years and eight months in prison for fraudulently obtaining over $1.8 million of government funding earmarked for pandemic relief.
The sentencing, delivered today by Judge Bruce Northwood in the Palmerston North District Court, marks a “significant fall from grace” for the 28-year-old, who previously admitted one charge of obtaining by deception. The judge rejected a defence plea for home detention, citing the severity and sophistication of the crime, which exploited the public trust during a period of national vulnerability.
The Scheme: False Invoices and Phantom Companies
Thorby’s fraud occurred over a concentrated five-month period between October 2021 and June 2022, while he was employed as the Covid managed isolation and community quarantine service lead. His role involved arranging logistics, cleaning, and security services for MIQ facilities in the Lower North Island.
The deception involved submitting 17 fraudulent invoices from three companies:
- Moutoa Māori Wardens: While Thorby had a history of community work and claimed to have directed some money to the Wardens, he submitted false invoices for security services that were never provided.
- Te Awahou Cleaning & Co: This company did not exist.
- Horowhenua Motorhome Rental: This company also did not exist.
In total, Thorby’s scheme resulted in the theft of just over $1.8 million in taxpayer funds.
Spending Spree and Airport Arrest
According to the summary of facts, Thorby quickly spent the fraudulently obtained money on a lavish lifestyle that included:
- Purchasing a property in Foxton.
- Acquiring multiple vehicles and a motorhome.
- Funding extensive overseas travel.
The fraud came to an abrupt halt in July 2022, the day after his fixed-term contract with the DHBs ended, when he was arrested at Auckland Airport while attempting to board a flight to Brisbane. Thorby had planned a month-long overseas trip, which he claimed was funded by a lottery win—a claim that proved false.
Trust and Vulnerability
In his sentencing remarks, Judge Northwood highlighted the fundamental breach of trust, stating that the offending was carried out “at a time of vulnerability,” when the government and public were heavily relying on the swift and honest deployment of Covid-19 response funds.
The judge acknowledged Thorby’s history of community work, including his aspirations to serve in the priesthood, but ultimately ruled that the gravity of the crime demanded a term of imprisonment.
Thorby has been ordered to pay back the $1.8 million he stole. The case serves as a stark reminder of the risks of fraud and corruption, particularly when large sums of public money are rapidly allocated during times of crisis.
Key Facts at a Glance
| Detail | Summary |
| Offender: | Alister Thorby (28) |
| Role: | Former Covid-19 Response Lead for Capital and Coast & Hutt Valley DHBs |
| Amount Stolen: | Over $1.8 Million |
| Method: | Submitting 17 fraudulent invoices from made-up companies |
| Sentence: | 2 Years and 8 Months in prison |
| Assets Purchased: | Property, vehicles, motorhome, overseas travel |
| Arrest: | Auckland Airport in July 2022 while attempting to fly to Brisbane |
