Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Westpac sues Lane Walker Rudkin fraudster's ex for $50.8M

Westpac sues Lane Walker Rudkin fraudster's ex Patricia Anderson for $50.8M

By Paul McBeth

Sept. 26 (BusinessDesk) - Westpac New Zealand is suing the ex-wife of convicted Lane Walker Rudkin fraudster Ken Anderson for being a party to the fraud and is seeking damages of $50.8 million.

The lender claims Patricia Anderson either defrauded it, or was part of a conspiracy to defraud it, by signing documents she knew were false in securing a $2.5 million letter of credit facility, which masked the financial strain the clothing manufacturer was under.

She sought a number of interlocutory orders for the lender to amend its claim for further and better particulars. Associate Judge Rob Osborne granted some of Anderson's requests and dismissed others in a recently published Sept. 12 judgment in the High Court in Christchurch.

Westpac was left out of pocket since it tipped Lane Walker Rudkin into receivership in April 2009, recovering $41 million of the $130 million owed at the time. It first served the claim on Anderson in mid-2016, the judgment shows.

Patricia and Ken Anderson were signatories and guarantors to the lender's offer of credit for Lane Walker Rudkin in 2001, and Westpac claims they said they were accountants, the judgment said. The couple split up in 2005, and a year later her guarantee from the original offer of credit expired.

Westpac claims Lane Walker Rudkin began facing financial problems from 2004 and had a shortfall in working capital which managers and Patricia Anderson tried to bridge with the letter of credit facility, which the judgment dubs the LOC fraud. The bank claims the use of the facility was dishonest because "invoices for fictitious stock were created to enable funds to be drawn down" and that Anderson was executing documents she knew were false, the judgment said.

"The plaintiff alleges that if it had been aware of the financial difficulties, the fact that the Andersons were not accountants and the LOC fraud, it would neither have released the defendant from her guarantee nor increased its lending to LWRI (Lane Walker Rudkin Industries) and the LWR Group," the judgment said. "Further, as a result of the LOC fraud, its losses amount to approximately $50.8 million."

If Patricia Anderson didn't deceive the bank, it claims that she conspired and combined with management to perpetrate the fraud, leading to the $50.8 million of losses.

Lane Walker Rudkin's former owner Ken Anderson pleaded guilty to four fraud charges in 2013, where he made false statements to secure lending from Westpac, and sentenced to six years imprisonment. He was granted parole in January last year.

The Serious Fraud Office initially laid 82 charges against Ken Anderson in 2011 before his guilty plea, saying at the time the fraud "had a profound effect on the region, with LWR having employed many staff and enjoyed an international reputation".


© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>


Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>