Manager's $1m fraud on bank

A former National Bank manager has been jailed after using customers' bank accounts to steal almost $1 million.

Mark Grimmer, 45, was sentenced to 4 1/2 years in jail for setting up false accounts while working at various bank branches between early 1991 and 2001.

He used customers' accounts and fictitious account names to set up loan and overdraft facilities for his own use. He also reopened previously closed accounts.

Grimmer's offending was discovered by chance when another National Bank worker discussed a level of borrowing with a client. The client had borrowed nothing from the bank.

Grimmer, his former wife and two teenage sons have left the suburban Birkdale house they had lived in for the 10 years he was taking the money.

A neighbour said the family "always had the best of everything".

"They had flash cars, they did the whole house up, he had a boat - whatever was 'in', they'd have it."

When Grimmer moved out a year ago, everything was sold and his ex-wife was left with "only a bed and a car".

"They had been part of the street," the neighbour said. "They would always be at street barbeques - Mark would probably be the one organising them."

The National Bank lost about $1.4 million as a result of penalty interest and charges on the false loan accounts.

As well, 11 individual victims had accounts falsified by Grimmer.

He also created three fictitious customers and used post office boxes as addresses for the false accounts.

When his offences were discovered, $967,753 was outstanding on loans and overdrafts that Grimmer had set up.

The bank covered losses to individual account holders.

Grimmer pleaded guilty in the North Shore District Court in March to one representative charge of false accounting by an employee, which carries a maximum penalty of seven years' imprisonment.

Serious Fraud Office documents show Grimmer was able to carry out the offending with almost complete immunity from detection.

"His position as a bank manager coupled with his ability to approve lending to certain levels meant that he could open and operate accounts secretly," Shane Walsh of the fraud office said in submissions to Judge Mark Perkins.

"The defendant skilfully manipulated the National Bank accounting system to approve lending which would be difficult for other employees to discover."

The fraud was not overly sophisticated, he said, but the way it was perpetrated was elaborate.

Grimmer had created false documents about the accounts "in case questions were ever asked of him".

Mr Walsh said Grimmer could not make full reparation. The bank recovered about $100,000 through a civil settlement with him.

Grimmer's lawyer, Ron Mansfield, said the stealing was "a hidden side" to his client's character.

He was relieved when it was finally uncovered because "he could confront it and put it behind him", Mr Mansfield said.

"He knew that day was going to come. He had been waiting for it."

Mr Mansfield said Grimmer had been unemployed since being sacked, and had sold all his assets to pay back as much as possible to the bank.

National Bank spokeswoman Cynthia Brophy said the theft had triggered "a thorough review" at the bank.

"I wouldn't go so far as to say it is impossible for fraud to happen, but we are sure our procedures meet international standards in all respects."