Uni student who splurged $5m after Westpac bank error has charges dropped

The Sydney University student had been given an unlimited overdraft from Westpac after a processing error in 2012. Photo / Supplied

A Malaysian student accused of splurging A$4.6 million ($5 million) on luxury items after a bank error has had her case sensationally dropped.

The prosecution dropped the charges against Christine Jiaxin Lee after a similar case was thrown out of court.

Lee had previously appeared in court charged with "dishonestly obtaining financial advantage by deception and knowingly dealing with the proceeds of crime", the Daily Mail Australia reported.

Some of the luxury designer handbags allegedly bought by Christine Jiaxin Lee. Photo / Supplied

The Sydney University student had been given an unlimited overdraft from Westpac after a processing error in 2012.

She was arrested in May 2016 after trying to board a flight to Malaysia.

The chemical engineering student is alleged to have found she had an unlimited overdraft in July 2014, and then went on a spending spree.

She allegedly spent A$4.6 million in just 11 months. She reportedly spent A$220,000 at the Christian Dior store in Sydney in a single day.

In April 2015, a manager at Westpac noticed the error and called Lee, demanding she account for the missing A$4,653,333.

Lee claimed at the time she believed the money had been transferred by her parents.

It is unclear whether the seized items will be returned to the student. Photo / Supplied

Police seized luxury items from Lee's apartment in the Sydney suburb of Rhodes, including Hermes bags, Cartier jewellery and Christian Louboutin boots.

It is unclear whether the seized items will be returned to the student.

A Westpac spokesperson said in a statement: "Westpac has taken all possible steps to recover its funds, including taking civil action against Ms Lee.

"The criminal charges against Lee were a matter for the Director of Public Prosecutions (DPP) and Police, and we respect their decision."

Accidental millioniare Leo Gao and Kara Hurring in the dock at Rotorua Court in 2012. Photo / Christine Cornege

In April 2009, Rotorua man Leo Gao was mistakenly given him a $10 million limit to his Westpac overdraft instead of $100,000.

Gao, dubbed the "accidental millionaire", transferred a total of $6.78m and he and his partner at the time, Kara Hurring, fled the country.

The couple's disappearance sparked an international manhunt involving Interpol and other overseas agencies.

Gao was arrested in 2011 when he tried to cross from mainland China to Hong Kong and triggered an Interpol alert. Hurring was arrested earlier in the year when she tried to re-enter New Zealand.

Gao was sentenced in August 2012 to four years and seven months in prison while his former partner will serve nine months home detention.