It told the victim that while its position may be “frustrating for you, I’m sure you will understand that we are a school and also have responsibilities and commitments”.

Disgraced lawyer Rohineet Sharma faces up to seven years in prison if convicted of laundering the proceeds of a complex investment scam that netted $400,000 from Far North luxury yacht skipper Tim Michalick in January last year.

Police say the money landed at Sharma’s Kiwibank business account before it was immediately transferred to pay building contractors working on his family’s luxury St Heliers home or sent to other bank accounts under his control.

$50,000 is also said to have been used to pay his daughter’s school fees for the diocese.

Sharma will defend the charges in a single-judge trial next year.

He was arrested in May 2023, with court documents revealing where police believed Michalick’s stolen money was being spent.

In August last year, Michalick wrote to the school explaining how he had been defrauded and told staff that Sharma had allegedly used the stolen money to pay tuition fees.

The letter advised that Sharma was now in court on money laundering charges relating to two separate victims and that Kiwibank had removed Sharma as a customer and prevented him from opening a new bank account in NZ.

“I am a family man with two young daughters whose life has been turned upside down by this person’s actions,” Michalick wrote.

“He (allegedly) stole our entire life savings and to this day my family and I have only gotten about half of the money back.”

Michalick told the school that he had tried every possible avenue to recover the outstanding funds.

“I would now kindly request that you take moral action and return the stolen money you received…to its rightful owner.

“I appreciate your understanding and … I’m sure you’ll agree that this man is not an ideal client for the Diocesan School.”

In a response the next day, principal Heather McRae said she was sorry for Michalick’s situation “which must be a nightmare.”

“It is good to know that you have followed up with the banks involved and no doubt they will have the capacity through the courts and legal action to ensure that the other half of your money is returned.

“We wish you the best of luck in pursuing (sic) this and we hope based on what you have described, that Mr. Sharma receives an appropriate consequence from the legal process.

“Unfortunately, we are not involved in this process and cannot help you with information or support. Although this is frustrating for you, I am sure you will understand that we are a school and also have responsibilities and commitments.”

Michalick wrote back to express his disappointment.

“I had hoped that the Diocese as a school of some standing might take the time to help a victim get his life back … but apparently I was wrong.

– I personally cannot see how keeping stolen money is different from not returning stolen property, i.e. a stolen vehicle. But for some reason you see it differently.”

He warned that the story would eventually become public, including the school’s refusal to help.

Michael told Herald he considered the school’s stance cynical and hypocritical, especially given the values ​​it encouraged students to aspire to, including engagement with “moral and ethical social issues”.

“The school has a moral imperative to at least treat my case seriously rather than just dismiss it.”

Retired Auckland University law professor Bill Hodge said the school was not aware of any “dirt” on the funds when it received the money.

There was therefore no legal requirement for the money to be refunded.

It then became a moral question whether the school should return the money knowing the source, especially given the values ​​the school promoted to its community.

“I am not an expert on morality.

“I just don’t see any moral culpability attached to the school because one of the parents in retrospect (allegedly) was a questionable source of the money.”

Hodge said courts had the power to order restitution to victims under the Criminal Code, even though offenders often had little money left over after paying for their defense.

The other option was for victims to pursue costly civil proceedings through the High Court.

Diocese chairman Jenny Spillane said: “We sympathize with those affected, but the school cannot comment on the allegations due to the ongoing legal proceedings in which the school is not involved”.

Lane Nichols is deputy news director and senior journalist for the New Zealand Herald with more than 20 years’ experience in the industry.

Sign up for The Daily Ha free newsletter curated by our editors and delivered straight to your inbox every weekday.