LWR boss faces 82 fraud counts

Ken Anderson allegedly used fabricated documents to gain loans. Photo / Simon Baker

The Serious Fraud Office has laid 82 fraud charges against the former director of Canterbury clothing manufacturer Lane Walker Rudkin following a 21-month investigation.

LWR's former boss Ken Anderson faces 61 charges under the Crimes Act for allegedly fabricating financial documents to gain loans from Westpac of $118 million.

Anderson faces 21 charges for allegedly using fabricated documents to gain funds through a letter of credit facility from Westpac.

The SFO also laid eight charges against another individual who was associated with the letter of credit facility, but whose name has been suppressed.

SFO acting director Simon McArley said suppression was granted because the person concerned had ongoing business interests that would have been harmed if their identity were revealed.

Anderson took over the century-old clothing company in 2001 with his then-wife, Patricia, who, according to the Companies Office, officially ended her involvement with LWR in 2006.

At the time of purchase, the Andersons also owned the Stirling Sports and Champion of the World retail chains.

The Herald understands the couple have since separated.

In its heyday, LWR employed around 4000 staff and was associated with brands such as Canterbury, Jockey and adidas.

McArley said the alleged fraud and collapse of LWR has had a "profound effect" on Canterbury.

"While its demise is unfortunate for the Canterbury people, upholding the integrity and credibility of New Zealand businesses is essential for our future success," he said.

Staff numbers had fallen to 470 - with 300 based in Christchurch - when the company was placed into receivership in April 2009.

In the following months, more than 200 staff lost their jobs, many of whom did not receive their entitlements. Speaking at the time, receivers BDO Spicers said LWR had not made money "for years" and criticised the company's standards of financial reporting and corporate governance.

The SFO investigation began in September 2009 after BDO raised concerns.

The receivers could not be contacted yesterday to confirm how much was still owed to creditors.

The National Distribution Union said the charges would be "cold comfort for out-of-pocket workers".

CLOTHES MAKER
* Lane Walker Rudkin was started in 1904 by Alfred Rudkin.
* Bought by Ken and Patricia Anderson in 2001.
* Went into receivership in April 2009, with debts of over $100 million.
* The SFO began investigating the collapse of the company in September 2009.