Bank deal to remain secret

A former prostitute, who was paid $2.5 million by ASB fraudster Stephen Versalko, was in the Auckland High Court this week to make a deal with the bank over the money.

We can't tell you who she is - her identity is protected by one of many court orders around the case of the $18m Versalko stole from his former employer.

The former investment banker is in Rangipo Prison near Tongariro after being jailed for six years for fraud.

The married father of three was found to have conned customers into fake investments, spending the money on expensive properties, fine wine and prostitutes.

The Herald on Sunday can reveal that payments to one prostitute came from the bank account Versalko shared with his wife Megan, 49.

The former prostitute who was paid $2.5m was in the Auckland High Court this week to make a deal with the ASB over the money.

The bank launched legal action against her to recover the money shortly after Versalko was caught in August last year.

She told the Herald on Sunday no detail about the deal was publicly "available".

"It's wrapped in lead and at the bottom of the ocean. There is nothing we have to say at all on the matter."

Asked about Versalko she had "absolutely nothing at all" to say.

Asked if she had a message for Megan, Versalko's wife of more than 20 years, she refused to comment.

"That's all I've got to say to you."

The Herald on Sunday understands the woman has given up her former profession.

She now runs a number of companies and lives with her partner and teenage daughter in a country house.

The couple have a number of expensive late-model cars to drive.

The deal was agreed after a day-long conference held behind closed doors in Auckland last Tuesday.

The following day, the former prostitute and the ASB Bank's lawyers were in the Auckland High Court.

In a hearing taking no more than 10 minutes, they told a judge a deal had been done.

Court staff said the deal was secret.

The court was opened so the ASB and the woman could tell the judge that a deal had been done.

An ASB spokeswoman said: "We can confirm that the matter is settled, the terms of which are confidential."

Even though secrecy surrounds the settlement, new details have emerged from court files obtained by the Herald on Sunday.

They reveal Stephen and Megan Versalko shared a bank account at another major trading bank.

It was from this account that Versalko made regular payments to the former prostitute.

Fridays were the most popular days for Versalko to pay her, although the payments ranged across the week.

They were made from April 2008 to August last year. The last came days before Versalko was caught.

Two substantial payments were also made, according to the documents.

Versalko transferred $1m just after Christmas 2008, only a few days before the former prostitute paid for an extensive country home.

On Friday the home, which carries no mortgage, was still the subject of a legal order made by the ASB barring her from selling it without permission.

The second large payment came in March last year and was also for close to $1m.

The court papers also record a $520,000 payment made out of the prostitute's accounts the day after Versalko was caught.

The money was paid to a company she does not appear to be connected to.

That company was also being sued by the ASB Bank to return the money.

Megan Versalko did not respond to requests for comment.