Four in court on extortion charges

They met their alleged victims over lunch at a Denny's restaurant, took them to a motel to watch a football match and then allegedly extorted nearly $20,000 out of them.

The Auckland District Court heard yesterday that doing business in China was all about honour but that it came undone for three Chinese nationals who allegedly tried to extort $20,000 out of Mian Li and Maosheng Chen, also known as Sam.

At a deposition hearing before justices of the peace Ruth Williamson and Wallis Walker, Guang Yi Lai, who has pleaded guilty to kidnapping and demanding with menaces, gave evidence against his friends Kai Zhu, 22, Li Wang, 22 and Chongxu Rong, 20, who face the same charges.

On May 25 this year it is alleged Li and Chen were taken to two separate banks, Li to the ASB in Otahuhu by Zhu and Rong and Chen to the National Bank in Newmarket by Lai and Wang.

Police were called, however, when Chen handed a withdrawal slip to the bank teller in Newmarket asking her to call police.

Lai agreed with Wang's lawyer, David Young, that doing business in China was about honour and appearing strong.

He also told other defence counsel Sanjay Patel and Adam Couchman he was aware his guilty pleas to the charges he faced might mean he received less time in prison.

Lai told the court Chen had entered a contract with Wang for money to fund an immigration application, but when it failed he refused to pay.

The four met Chen and Li at Denny's in New Lynn on May 24 where Lai said Chen and Li were told there were 20 Maori men waiting outside who wanted to be paid $1000 each.

Lai said Rong told the pair "there are 20 of my Maori friends outside if you make me really angry I will call them in and they will beat you up".

He then sent Lai outside for a cigarette to pretend he was getting the group.

During their time at the restaurant Lai said the pair's bank accounts were checked to see how much money they had and it was decided Rong would get $10,000 and the other $10,000 would be split between the three.

They stayed at Denny's for about three hours before Rong wanted to watch a football match so they drove to a motel in Mt Eden, Lai said.

He said Chen and Li went with them because they were scared.

The following day Chen and Li were taken to the two banks to withdraw the money and police were called.

Rong, Wang and Zhu were remanded in custody until March.