Financial Crime World

Financial Crime Cases in New Zealand: Two Men Convicted of Fraud

Major Win for Law Enforcement: Two Men Found Guilty of Obtaining $41-Million Loan through Deception

Auckland, NZ - In a significant victory for law enforcement agencies, two men have been convicted on charges of ‘Obtaining by deception’ and ‘Using forged documents’ in relation to a major financial crime case. Leonard John Ross (51) and Michael James Wehipeihana (46), who were found guilty of making false statements and using forged documents to secure a $41-million development loan from ANZ Bank for their company Emily Projects Limited, are expected to face sentencing in September.

Background of the Case

The men’s actions were aimed at building the Waldorf Celestion Apartment Hotel in Auckland. However, their efforts were thwarted when they made false statements and used forged documents to secure the loan. This move undermined the integrity of the mortgage market and was a clear breach of trust.

Two other men involved in the scheme have already been sentenced. Vaughn Stephen Foster (56), a self-employed consultant, pleaded guilty to one representative charge of ‘Obtaining by deception’ prior to the trial. Timothy Upton Slack (56), a lawyer, pleaded guilty on September 1 last year and was also sentenced.

The Serious Fraud Office’s Commitment

The convictions highlight the Serious Fraud Office’s commitment to investigating and prosecuting complex financial crimes in New Zealand. The SFO operates under two sets of investigative powers, allowing it to act where there is reason to suspect serious or complex fraud, or where an offence has been committed.

Key Points:

  • Leonard John Ross (51) and Michael James Wehipeihana (46) were convicted on charges of ‘Obtaining by deception’ and ‘Using forged documents’.
  • The men made false statements and used forged documents to secure a $41-million development loan from ANZ Bank.
  • Two other men involved in the scheme have already been sentenced to 10 months’ home detention.
  • The Serious Fraud Office operates under two sets of investigative powers to investigate and prosecute complex financial crimes.

The Importance of the Convictions

The convictions are a significant step forward in New Zealand’s efforts to combat financial crime. They serve as a warning to others who may be considering similar actions, highlighting the importance of maintaining a fair and transparent economy.

“The work of the Serious Fraud Office is crucial to maintaining a fair and transparent economy,” said an SFO spokesperson. “We will continue to work tirelessly to bring those responsible for financial crimes to justice.”

The convictions are a major win for law enforcement agencies in New Zealand, demonstrating their commitment to investigating and prosecuting complex financial crimes.