3 years imprisonment for defrauding finance company of $3.7m

For immediate release

Media Statement:

3 December 2010

Three years imprisonment for defrauding finance company of $3.7 Million

Alan Edwards Wycherley was sentenced in the Wellington District Court on 2 December 2010 to three years imprisonment and ordered to pay $30,000. The sentence resulted from a conviction on one charge of conspiracy to use documents to defraud laid by the Serious Fraud Office (SFO). The charge related to $3.7 million of advances made by Lumley Finance Limited to Mr Wycherley’s company Debt Relief (NZ) Limited. Mr Wycherley is a 52 year old Waikanae resident.

SFO Chief Executive, Adam Feeley, said “SFO is pleased with the delivery of a custodial sentence. This continues the clear message from the Courts as to the seriousness of white collar crime.”

Mr Wycherley had previously pleaded guilty partway through a three week trial held in September 2010. Mr Wycherley was also convicted of running a company while prohibited and illegally signing shareholder forms.

From June 2004 through to the July 2006 Mr Wycherley and Mr Mackie, a director and employee of the company, submitted 1,030 loan applications to Lumley Finance on behalf of purported clients of Debt Relief (NZ) Limited. The applications were falsified by Mr Mackie or Mr Wycherley and none of the named borrowers were aware that they had entered into a loan agreement with Lumley Finance. The proceeds of later loans were used to repay the earlier loans, resulting in a net shortfall of $1,248,961.49.

Mr Mackie had pleaded guilty earlier this year and was sentenced to 10 months home detention, community work and ordered to pay $10,000 in reparation.

ENDS

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