Fraudster asked parents to pay back home loan

Stephen Gerard Versalko. Photo / Dean Purcell

The ASB bank investment adviser who stole $17.8 million charged his parents interest on an $80,000 loan to move into a retirement home - then asked for the money back when the fraud was discovered.

Stephen Gerard Versalko was this week sent to jail for at least four years for the single largest employee theft in New Zealand history.

The 52-year-old, who stole $17.8 million from wealthy ASB clients, remained undetected for nine years and spent millions on a lavish lifestyle, including nearly $4 million on the company of two prostitutes.

But the Weekend Herald has learned Versalko's parents asked him for $80,000 to help move into a North Shore retirement home. He agreed to lend them the money - with interest - but asked for the loan back after the huge fraud was discovered.

Versalko has managed to pull together $4.75 million to pay back the ASB. It's being held in a trust account.

His parents were unable to be contacted at the rest home yesterday for comment. Their son committed the fraud alone and his family were described in court this week as innocent parties to crime.

The loan documents were discovered by the Serious Fraud Office during the three-month investigation leading up to when Versalko was charged.

The fraud was discovered by accident last August when an ASB client who had invested more than $3 million with Versalko realised he was the only staff member she had dealt with.

At the same time, the client watched a television show about America's US$50 billion fraudster Bernie Madoff, which rang alarm bells. A phone call to the bank confirmed the investor's worst fears.

Versalko confessed to ASB investigators and told the SFO that after nine years of stealing millions of dollars, he thought he was "Mr Invincible".

Versalko lived a lavish lifestyle, spending $3.9 million on luxury properties in Remuera and the Coromandel and more than $2 million on credit cards. This included $300,000 on stocking his wine cellar.

He targeted the elderly, the financially unsophisticated, women and those living overseas or with no telephone or internet banking access.

Millions of dollars he was supposed to have invested were transferred to his personal accounts, or to a "ghost" account to repay other investors. All 26 victims were reimbursed by ASB.

Judge Chris Field sentenced Versalko to six years' jail with a minimum non-parole period of four years.