-
Source: ONE News -
Watch Video
One of New Zealand's biggest ever fraudsters has been sentenced to six years in prison in the largest case of employee theft ever investigated by the Serious Fraud Office.
Stephen Versalko admitted stealing nearly $18 million over almost a decade while he was working as a financial advisor.
The former ASB investment adviser lived extravagantly for over nine years while transferring the money his clients gave him to his personal accounts.
"He deceived pre-existing clients into believing that he could invest their funds into savings schemes offering high rates of interest. The schemes never existed," prosecutor Patrick McCann said.
Between 2000 and 2009 Versalko fooled his clients by making sure he repaid their so called interest when they expected it.
"He was able to manipulate the computer system in such a manner that the preferences for where the money was transferred to, or where the money was transferred from, were never recorded in the bank statements of the victim," says McCann.
"It was inevitable that he would be found out," says McCann, adding that Versalko couldn't possibly continue to hide the amount of money involved.
He kept most of the paper trail in his head. Nearly $5 million ($4.7m) was repaid to customers in fake interest payments, $3.9 million went on buying property and $3.4 million was spent on escorts - two favourites got lump sums of $700,000 each.
In sentencing, the prosecution noted that all the clients Versalko stole from were particularly vulnerable - generally elderly females who were based overseas.
But the defence said only 11 were aged over 65 and "it could have been worse".
"There was a significant degree of planning and premeditation,
and the fact that you used the money for lifestyle purposes,"
However, in sentencing Versalko to six years in prison, the judge
credited him for his early guilty plea and remorse.
"You provided, in my view, as much information and help to the investigating authorities as you possibly could," judge Chris Field said in the Auckland District Court.
More than $16 million is being repaid to clients by his former employer, ASB, as the bank is left with the burden of Versalko's fictitious investments.
