The Serious Fraud Office has laid charges against a property developer for an alleged $47.8 million loan scam involving a company linked to a well-known public figure.
The 54-year-old appeared in the Auckland District Court yesterday to face 62 charges dating back to 2003 and was granted interim name suppression.
SFO prosecutor Hillary Walker opposed suppression but Judge Christopher Field granted defence lawyer Gary Gotlieb's request to protect the identity of his client, despite previous publicity about the case.
Judge Field ruled suppression would stay in place until Monday when the legal argument for and against secrecy could be explored further.
The interim suppression means the Herald cannot publish the man's name, the company he allegedly defrauded, or the former public figure linked to the company, because it might identify him.
Judge Field asked Ms Walker how much money the man had allegedly obtained, and she said it was $47.8 million.
Between 2003 and 2008, the property developer allegedly organised a scheme where he used relatives and associates as fronts to secure millions of dollars in loans from a fund management company.
Court documents show the man is charged with obtaining loan sums of up to $4 million by making false finance applications and leases, or forging sale and purchase agreements, to secure funding for property developments.
Many of the loans were for properties in Auckland suburbs such as Mt Eden, Epsom, and Pt Chevalier.
A second property developer named in court documents by the SFO - who also cannot be named because it would identify the accused - also allegedly used his relatives to secure millions of dollars in loans. He is understood to have left the country.
Most of those loans have defaulted and the finance company has attempted to bankrupt several of the co-accused's relatives, including his pensioner parents.
The man who appeared in court yesterday also allegedly secured millions of dollars in loans for his own property portfolio. He allegedly used family members and employees as front people on trusts that owned properties of which he was the beneficiary.
The 54-year-old man entered no plea and was bailed to live in an apartment in downtown Auckland.
