SFO lays 90 fraud charges in LWR collapse

Ken Anderson, former director of LWR, which made the Canterbury brand of sports apparel. Photo / Simon Baker

The Serious Fraud Office probe into the collapse of Canterbury clothing manufacturer, Lane Walker Rudkin Industries (LWR), has resulted in criminal charges against its director Kenneth James Anderson and one other.

In a release published this afternoon, the SFO says Anderson, 64, now faces 61 charges, brought under the Crimes Act, relating to allegations that he fabricated financial documents in order to obtain and retain lending facilities from Westpac Bank ultimately totalling $118 million.

He is also facing another 21 charges relating to the alleged use of fabricated documentation to obtain funds under a letter of credit facility provided by Westpac.

Another person, who has name suppression, is facing eight charges in relation to the letter of credit facility.

SFO Acting Director, Simon McArley, said,

"The fraud alleged to have occurred here has had a profound effect on the region, with LWR having employed many staff and enjoyed an international reputation," said SFO acting director Simon McArley.

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

LWR was incorporated in 2001 and placed into receivership in April 2009.

The SFO's investigation commenced in September 2009 following concerns raised by the company's receivers, BDO Spicers.

- NZ HERALD ONLINE