Asian couple involved in New Zealand bank fraud may be in China

Posted on Friday, 05.22.09

South East Asia News.Org
Friday 22nd May, 2009

Wellington, An Asian couple is understood to have fled New Zealand to China after a banking error involving millions of dollars surfaced.

According to a report by the New Zealand Press Association and the website stuff.co.nz, a police liaison officer was sent to China recently to search for the couple after 10 million dollars was deposited into their bank account. It is understood that the money has been recovered.

The couple, who ran Rotorua service station BP Barnetts, are understood to have applied to Westpac Bank for a 10,000 dollar overdraft and mistakenly had 10 million dollars paid into their account.

Westpac media relations manager Craig Dowling would not comment on the specifics of the case due the police investigation and court actions requiring confidentiality.

Police had asked international police liaison organisation Interpol to help find the couple.

BP Barnetts closed its doors earlier this month after its operator, Heights Service Limited, went into receivership.

The service station, at the intersection of Otonga, Old Taupo and Devon roads, was owned by Huan Di Zhang and Hui Gao. The pair was listed at a West Harbour, Auckland address.

Rotorua's The Daily Post newspaper reported that the company owed money to creditors.

The hunt is being stepped up for the couple who've absconded, after finding themselves $10 million richer, as a result of a banking error.

Interpol and the NZ Police are searching for a Rotorua service station owner and his girlfriend who are believed to have fled New Zealand after gaining a multi-million windfall through a bank's blunder.

On Friday morning, BP took its sign off the service station, run by the alleged offenders, Leo Gao, and his partner Cara Young.  

The mistake involved Westpac allowing for an overdraft facility believed to be $10 million to be credited to a business account, though the account holders were thought to have applied for only $10,000.

It has been reported that Westpac has recovered $4 million, but $6 million is still missing.

Police said those being sought have fled overseas and international police liaison organisation Interpol has been called in to help find them.

Officer-in-charge, Detective Senior Sergeant David Harvey of Rotorua CIB, would not confirm on Thursday the names of those being sought, or the amount of money in question.

But it has been reported that Leo Gao and his girlfriend Cara left the country after his service station on Old Taupo Road in Rotorua was abandoned. It is reported other family members of Gao are also missing.

Records showed the service station, known as BP Barnett, was owned by Huan Di Zhang and Hui Gao. It was placed in receivership earlier this month.

No one seemed to be clear on where the couple have gone, but the Rotorua Review newspaper said they might be in China.

A source told the newspaper a police liaison officer was sent to China recently to search for the couple.

Westpac said it is "pursing vigorous criminal and civil action to recover the sum of money stolen".

It would not confirm the amount, but said human error was responsible for the mistaken windfall, not a systems error, and that the bank is reviewing its procedures.

The union representing bank workers, says even though the staff member had made a serious mistake, they won't necessarily get the sack.

Andrew Campbell is from Finsec doubts the employee responsible will lose their job.

He says unless there's proof such a mistake was intentional, the general rule is that it's not a sackable offence.

Campbell understands how such an error can occur, which is why banks have thorough checking systems.

Service station abandoned

Neighbours of BP Barnett  said it had closed suddenly and for a while motorists were still driving in to fill up thinking it was open.

The Daily Post newspaper reported the company owed money to creditors.

The creditors report, being prepared by Corporate Finance Limited, is not due until 19 July. Corporate Finance Limited would not comment.

Banking ombudsman Liz Brown told The Daily Post that generally speaking it is a criminal offence for people to spend money accidentally put into their bank account if they know the money isn't theirs.

In her 15 years as banking ombudsman she has been involved in 10 to 20 cases of this nature. They are legally referred to as "payment by mistake".