$18m fraudster to repay ASB only $3m-$5m

Stephen Versalko lived the high life for nine years before pleading guilty to three charges laid by the Serious Fraud Office. Photo / Bradley Ambrose

A former ASB investment adviser who stole nearly $18 million in New Zealand's largest case of employee theft is likely to repay just $3 million to $5 million to the bank.

Stephen Gerard Versalko, 51, lived the high life for nine years before pleading guilty to three charges laid by the Serious Fraud Office.

He appeared in the Auckland District Court yesterday where defence lawyer Stuart Grieve, QC, said his client also admitted the summary of facts as outlined by the SFO.

Mr Grieve said Versalko would be able to pay the ASB between $3 million and $5 million from the "sale of assets".

Before he was fired by ASB, Versalko spent up large on the property market.

Last May, he bought a $3.2 million Remuera home which has since been sold.

In August he paid $1.8 million for a Whangapoua beachfront home in the Coromandel. That property sold for $1.85 million at Christmas.

In court, Mr Grieve said there was no need for a disputed facts hearing and did not seek suppression of the SFO summary of facts.

Normally the summary of facts is read in open court when guilty pleas are entered, but the facts were temporarily suppressed because it was initially disputed.

Despite Versalko yesterday admitting his offending, Judge Mark Perkins granted continued suppression until he is sentenced on March 18.

The suppression orders stop the Herald reporting how he spent the money, or describing how he tricked clients and was eventually caught.

We can say that the largest employee theft in New Zealand history was discovered by a fluke.

Judge Perkins also suppressed the occupation of Versalko's wife after Mr Grieve described her as a victim and the family's "sole breadwinner".

A senior investment adviser, Versalko defrauded nearly 30 wealthy ASB clients of $17,763,110 over nine years until he was fired by the bank in August.

The suppression orders prevent the ASB explaining how the offending stayed undetected for so long.

All victims have been reimbursed, but the fraud was so large that it contributed a statutory net loss for the bank of $10 million for the six months to December 31.

Charges were laid by the SFO just before Christmas and Versalko pleaded at the earliest opportunity, which will qualify him for a 30 per cent discount off his sentence.

Mr Grieve told the court Versalko accepted he would be jailed and that there was no chance of home detention.

DID YOU LOSE OUT?
If you have lost money as a result of dealings with Stephen Versalko, please contact the Herald Newsdesk.