Westpac blocks move to release file on missing millions

The bank chasing the multimillion-dollar runaways has blocked moves for court papers to be made public for fears this would "frustrate" attempts to recover the missing money.

Leo Gao and Kara Hurring are being sought in connection with the "inappropriate operation" of a Westpac business account in which $3.8 million is still unaccounted for.

The $10 million was made available by "human error" after Gao applied for an overdraft of $100,000 for his BP station in Rotorua.

Westpac has taken legal action against Gao, his business partner Huan Di Zhang, their business Heights Service Ltd, Lei Gao (believed to be Leo Gao's mother) and Wynn International Marketing Ltd.

The Herald applied to the High Court at Auckland to view the file, but Westpac's lawyers, Simpson Grierson, successfully opposed the bid.

"If this information is released at this stage to enable further media reporting, it is likely that this release would frustrate Westpac's attempts to recover the funds and also frustrate the investigations by the police and banks in various jurisdictions," Simpson Grierson said in written submissions.

Tania Goatley, solicitor on behalf of APN Holdings Ltd, submitted that sub judice law was an adequate safeguard for any concern the police might have around the criminal investigation and prosecution.

Justice Helen Winkelmann ruled in favour of Westpac but has allowed the Herald to report the reasons for the bank's opposition.

The court has frozen four properties relating to the BP service station that Leo Gao owned with Zhang, because the bank alleges they owe it $3,782,000.

One of the world's most luxurious hotel and casino chains has also been named in the court papers.

Wynn International Marketing is a wholly owned subsidiary of Wynn Resorts Ltd, which owns casinos and hotels in Las Vegas and Macau, China.

The Herald on Sunday reported that Aroha Hurring, the sister of Leo Gao's girlfriend Kara Hurring, was in Hong Kong drinking beer and enjoying the hot climate.

Aroha Hurring has now returned to New Zealand and told police that her sister was in Hong Kong but that she did not know where Gao was.

Police are continuing to work on the preparation of a mutual assistance request to the Chinese Government.