Judge rejects $250,000 bid for luxury flat, school fees

William Yan is alleged to have stolen $129 million in China and concealed the fortune in New Zealand. Photo / Brett Phibbs

Man in money-laundering case given access to just $4720 a month from seized $40m.

Auckland businessman William Yan has been denied access to seized assets to pay private school fees for his children and to service the mortgage on his luxury apartment.

Yan, who had $40 million of property restrained in August, this month made a High Court application for $250,000 a year worth of living expenses to be released from these assets.

This included $61,000 a year for private school fees, after-school classes, tuition and overseas school-related trips for his two children.

It also included $80,000 per year to pay the interest on the loan over his apartment in Auckland's Metropolis building.

For general living expenses, Yan and his wife wanted $4620 a month for the likes of food, power, internet, petrol and Sky Television.

Justice Geoffrey Venning, in his decision released on Friday afternoon, said it was reasonable to allow general living expenses of $4220 per month.

He also allowed $500 a month on top of this for the insurance, servicing and maintenance of Yan and his wife's cars, a Porsche and a BMW.

The judge did not take the view that the $61,000 costs for educational expenses were reasonable.

"There is no apparent reason why the children could not attend state schools, which would not incur the substantial costs claimed of $61,000 per annum," the judge said.

Justice Venning also refused access to $120,000 a year worth of accommodation costs, most of which was made up on the interest for the mortgage.

The judge said the family's reasonable living expenses were $4720 per month and directed these were to be paid out of the couple's restrained assets located out of New Zealand.

Yan's luxury apartment was raided in August because of his alleged involvement in money laundering.

No criminal charges have been laid but at least $40 million of assets have been seized under the Criminal Proceeds Recovery Act.

The Herald revealed in October that Yan is alleged to have stolen $129 million in China and concealed the fortune in New Zealand through complex money laundering transactions, according to court documents.

Court documents show new allegations in the case against Yan, in which Chinese authorities claim he orchestrated several complex "deceptions" in a $129 million fraud when he was the chairman of a pharmaceutical company in 2000.

His Queen's Counsel Paul Wicks said in October his client "strongly denies any wrongdoing in any jurisdiction".