Vikram Mehta, the owner of truck shop business Flexi Buy, has been sentenced to two years imprisonment after taking money from customers without intending to supply goods as promised.
It is the first jail sentence handed down in a prosecution initiated by the Commerce Commission, which regulates fair trading and other laws.
Mehta intends to appeal.
Flexi Buy told customers they would get their goods once they had made a set number of payments, when it knew they would not.
Between late 2012 and early 2014 Flexi Buy entered into more than 300 consumer credit contracts, but only nine customers received their goods.
The sentence was handed down in the Auckland District Court today by Judge Philippa Cunningham who said the seriousness of what occurred warranted more than home detention.
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