Details of how banker stole $18m stay secret

Stephen Versalko used his stolen millions to finance a lavish lifestyle. Photo / Sarah Ivey

How a former ASB investment adviser stole nearly $18 million from his clients in the country's biggest employee theft remains a secret for now.

Stephen Gerard Versalko, 51, appeared in Auckland District Court today, but details of the case were kept under wraps by Judge Mark Perkins, who extended suppression orders until a sentencing hearing in March. Versalko will remain in custody until then.

What can be said is that earlier this month Versalko pleaded guilty to three charges of fraud - netting him $17,763,110.19, stolen from about 30 wealthy ASB clients over nine years. He was fired last August and arrested a few days before Christmas.

ASB has previously said all defrauded clients had been reimbursed, which would have cost the bank millions.

Up to $5 million in assets remain from $17.8 million stolen, and they will soon be stripped from his wife and teenage children.

Defence lawyer Stuart Grieve, QC, told the court today that selling off Versalko's remaining assets would raise between $3 million and $5 million for "restitution".

Mr Grieve also asked Judge Perkins to suppress the identity and occupation of Versalko's wife, who had become the sole bread-winner for the family.

Judge Perkins ruled that the facts of the case should remain suppressed until sentencing, because he was "not so familiar with the case" as to be comfortable lifting existing suppressions.

He also placed a suppression on Versalko's wife's identity and where she worked, as requested by Mr Grieve.

The identity of Versalko's victims were also suppressed.

Versalko's fraud is the country's biggest employee theft, ahead of the $16.9 million stolen by former Otago District Health Board IT manager Michael Andrew Swann, sentenced to nine years in jail last year.

Versalko has been in custody since he admitted to fraud two weeks ago. At that hearing, the Serious Fraud Office's summary of facts was suppressed after Mr Grieve said some facts in it were disputed.

Today both prosecutor Patrick McCann and Mr Grieve told the court the facts were no longer disputed.

"There is no need for that hearing so the matter then can be remanded for a sentencing date," Mr Grieve said.

Both lawyers also said outside the court the summary of facts had not changed since the court was told the facts were in dispute.

In court, Judge Perkins said there was no need to read the summary of facts today and that summary would be available when Versalko was sentenced.

"There is no issue of trying to suppress openness in court," Mr Perkins said.

It was deferring reporting of the facts until the appropriate time of sentence, he said.

The three charges Versalko admitted were:

* obtaining $12,958,608 from 17 ASB Bank clients by conducting 68 fraudulent transactions between October 2003 and August 2009.

* offering fictitious investment opportunities to obtain $1,074,077 in 12 fraudulent transactions between August 2000 and September 2003.

* obtaining $3,730,423 from 28 ASB clients by conducting 43 fraudulent transactions between October 2003 and April 2009.

- ADDITIONAL REPORTING: NZPA