Lomu swindle accused told to pay ex-staff

Loizos Michaels. Photo / Brett Phibbs

A restaurant owned by a businessman accused of using Jonah Lomu's name in an alleged $3 million apartment swindle has been ordered to pay thousands of dollars to former staff.

Plato's Greek Taverna Ltd on Ponsonby Rd has lost an Employment Relations Authority case taken by former workers Maike Schmitz, Karl Holland and Zhu Meng.

The restaurant is owned by Loizos Michaels, who was arrested in February by the Serious Fraud Office after allegedly trying to buy a luxury apartment complex on the shores of Lake Taupo using Lomu's name.

Michaels has indicated he will defend the SFO charges. He refused to comment on the ERA decision.

Meng was awarded a total of $13,208.24; Holland, $1753, and Schmitz, $819 in wages and holiday pay.

Plato's was not represented at the hearing.

Michaels is facing three counts of fraud totalling $3m over the apartment deal.

One charge is that he made false representations to obtain more than $350,000 from the owners of a five-star accommodation complex on the shores of Lake Taupo, in a deal to buy luxury apartments worth $12m.

The SFO alleges Michaels told co-owners Edward and Janet Jackson the money would be deposited in a Belgian bank, and a sale and purchase agreement was drawn up.

He later rang the Jacksons' lawyer to change the name of the purchaser to Jonah Lomu. Michaels allegedly claimed Lomu was with him at the time of the phone call.

The purchaser's name was later changed to Nick Kandis.

Lomu, who was not part of the SFO investigation, told the Weekend Herald last year he was duped by a proposal from Michaels to become "the global face of kickboxing" but was never paid.

He had not invested any money with Michaels, but had done "months and months" of work.

"I trusted him. I gave him a chance. He crapped on me. The worst part of it was that he was using my name."

Court documents show the other two complainants in the case are former Christchurch Casino executives Stephen Lyttelton and Peter Arbuckle.