Versalko must repay $14m

A former ASB Bank adviser, who stole almost $18 million from clients to fuel an extravagant lifestyle, has been ordered to pay back most of it to his employer - but the money will likely be drip-fed back to the bank's insurance company.

The biggest employee theft in the Serious Fraud Office's 20-year history resulted in Stephen Versalko being jailed for six years in March over three fraud charges.

He stole $17.8 million which he spent on properties, wine, overseas trips and prostitutes.

In the High Court at Auckland yesterday, the 52-year-old father of three was ordered to repay $14,032,686.50, costs of $12,800 and disbursements of $1900.

The bank is reportedly also taking legal action against the prostitutes.

ASB only said of the judgment: "The process to recover the funds is ongoing", but the bank and its lawyers would not comment on insurance matters.

It has previously been reported that ASB was covered by insurance over the theft.

"Based on my experience, if you've made an insurance claim, so the insurance company has paid you out, then, yes, any funds that are ordered to be reimbursed go directly to the insurance company," said Massey University banking expert Claire Matthews.