A trustee company caught in an alleged loan scam advanced $21 million to a property developer or his associates after concerns with a set of borrowers were discussed by staff, a court heard yesterday.
Trustees Executors Ltd (TEL), chaired by former Prime Minister Jim Bolger, owned a $242 million mortgage fund that closed in 2008 in the tumult of the global financial crisis.
Before being wound up, the fund gave loans to Malcolm Duncan Mayer - a property developer now on trial in Auckland District Court.
Mayer, 55, is accused by the Serious Fraud Office of dishonestly using documents to obtain almost $50 million of loans from TEL in a scheme involving 26 Auckland properties.
TEL were allegedly sent documents during the loan application process which gave the impression someone unconnected to Mayer was buying a property when, in reality, the defendant or his alleged co-conspirator Simon Turnbull was the purchaser.