A Marlborough man created a fake plastering company in Christchurch, along with a phony job offer, to swindle a relocation grant out of the Government.

Shanon John Clarke, 39, was receiving a Jobseeker benefit from the Ministry of Social Development when he applied for the "3k to Christchurch" grant in May last year.

The funding was available to help unemployed Work and Income clients move to Christchurch after being offered a full-time job.

Clarke claimed to have been offered a job with a plastering company. He sent a copy of the job offer to the ministry, but it was soon discovered the letter – and the company – were fake.

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Clarke admitted two counts of using a document to obtain a pecuniary advantage when he appeared at the Blenheim District Court on Tuesday.

A lawyer for the ministry said inquiries revealed the company did not exist, and the signature at the bottom of the letter appeared to be in Clarke's handwriting.

His grant application was declined.

However, a week later Clarke he applied for the grant again.

He said he had been offered a job with a construction company. He sent a letter to the ministry showing the job offer, the lawyer said.

The ministry called the company and found the job offer was real. It granted Clarke $3000 to help him move to Christchurch.

He signed a form to say the information he provided was true and correct, and that the money would be recovered if he left the job or applied for another benefit in the first three months.

When the ministry called the company near the end of May, the director said Clarke never showed up for his first day of work and had not contacted the company since the job offer.

The director sent the ministry a copy of the job offer. It was largely the same as the one Clarke provided, but the offer was for a part-time job, not 40 hours a week as Clarke's version said, and the signature at the bottom was different.

Clarke never moved to Christchurch.

Three months later, in August last year, he applied for the Jobseeker benefit, before accepting a job at a Picton company in September without telling the ministry.

They were alerted to his change in circumstances when he told them he had started a job in March this year.

Inquiries revealed he had been working for eight months, while receiving $5073 on the Jobseeker benefit, $1763 through an accommodation supplement and $393 in temporary additional support.

When asked about the "3k to Christchurch" grant, Clarke admitted forging the job offers, but said it was his flatmate who signed them.

He said he forgot he was receiving a benefit when he started his new job.

The ministry sought $9569.50 in reparation.

Clarke's lawyer, Bryony Millar, said her client had struggled with addiction issues for years.

"Obviously those have led to some poor decisions on his part."

He had a significant criminal history but mostly before 2010. He was paying off about $10,000 in outstanding fines, Millar said.

Clarke's new employer was in court and wrote a letter to the judge in his support.

"He is extremely lucky and has someone who is willing to keep an eye on him ... It seems an extremely positive thing for Mr Clarke that he's got this employment."

Judge Tony Zohrab

remanded Clarke on bail to October 18 for a pre-sentence report and an alcohol and drug report.