Company director jailed for $3.7m fraud

Photograph / Greg Bowker

A former company director has been jailed for three years after defrauding a finance company of $3.7 million.

Alan Edwards Wycherley, 52, of Waikanae was sentenced to one charge of conspiracy to use documents to defraud in the Wellington District Court yesterday.

As well as the jail term, Wycherley was been ordered to pay $30,000.

The Serious Fraud Office charge relates to $3.7 million of advances made by Lumley Finance Limited to Wycherley's budget and debt management business Debt Relief Limited in Paraparaumu.

Wycherley was also convicted of running a company while prohibited and illegally signing shareholder forms.

The office said Wycherley applied for 1030 loans to Lumley Finance on behalf of "clients" of the business and without their knowledge.

Some purported applicants were existing or former clients of Debt Relief, others had never heard of the company.

The proceeds of the loans were used to repay earlier loans, resulting in a net shortfall of $1,248,961.49.

Serious Fraud Office chief executive Adam Feeley welcomed the sentence.

"This continues the clear message from the courts as to the seriousness of white collar crime," he said.

- Susie Nordqvist