An architectural designer has pleaded guilty to money laundering after receiving $235,000 in scam proceeds into his account from two duped investors. Illustration / Paul Slater
An architectural designer has pleaded guilty to money laundering after receiving $235,000 in scam proceeds into his account from two duped investors. Illustration / Paul Slater
An architectural designer pleaded guilty to money laundering after helping scammers steal $235,000 from investors.
The man seeks a discharge without conviction and permanent name suppression, arguing it could cost him his livelihood.
Victim Carla O’Neil lost $100,000 and criticised the suppression bid, highlighting the scam’s personal impact.
But the man is seeking a discharge without conviction and asking the court to permanently suppress his name.
One of his victimsis North Shore real estate agent Carla O’Neil, who lost $100,000 in February 2023, believing she was investing her savings in a Citibank term deposit.
In fact, her cash went to the ASB account of the North Island “money mule”, who by day is a respected architectural designer and company director.
The Herald was granted access to the police summary of facts. It shows the man is also implicated in a second case in which a separate victim lost $135,000 just days earlier.
Both victims were approached by scammers pretending to be investment advisers for international banks.
They were convinced to invest and told to deposit their money into the man’s “custodial account”. It’s believed the money was then immediately transferred offshore.
The man was charged in June 2023 and a warrant was issued for his arrest after he failed to appear in court last year.
He was due to go to trial yesterday but pleaded guilty to both charges yesterday morning.
Carla O'Neil lost $100,000 in an elaborate investment scam in which she thought she was putting the money into a Citibank term deposit. Photo / Michael Craig
His lawyer indicated the man will apply for a discharge without conviction when he is sentenced in July. He will also seek permanent name suppression.
Naming his client in connection with the charges could result in the “loss of his livelihood”, the lawyer said.
“There is an issue with whether he could remain director [of the company] if convicted of this offending.”
A respected company director (centre in the front row) pleaded guilty to money laundering charges when he appeared on Monday in the Auckland District Court. The "money mule" helped scammers steal $235,000 from two investors. Photo / Lane Nichols
The Herald intends to oppose the man’s bid for secrecy on the grounds of open justice and public interest.
The lawyer said the man intends to pay reparation “as much as he can”, and was willing to contribute $300 a week.
The Crown is seeking an order for $216,000 in reparation – the victims’ unrecovered losses – meaning full repayment would take nearly 14 years.
Mule believed victims were investing in steel and granite
Police say the man “legitimised” the scam by providing a NZ account to receive the proceeds of crime.
When he was interviewed by police, the man claimed he had no knowledge of illegal activity, claiming the victims had been “scammed by other people”.
He said a friend overseas had arranged for the investment proceeds to be paid into his ASB account.
“I gave my bank account to him, and he said, ‘We’ve got investors in New Zealand’.”
He understood the people putting money into his account were investing in steel and granite.
Carla O'Neil lost $100,000 in an elaborate investment scam in which she thought she was putting the money into a Citibank term deposit. Photo / Alex Burton
O’Neil welcomed the guilty pleas as “a small step towards justice”.
“It brings with it a sense of validation - that the crime has been acknowledged, and that accountability is beginning to take shape. But while this outcome is welcome, it does not undo the hurt that has been caused.”
She said the man’s suppression bid was a “devastating” blow, “silencing the truth from being fully heard and shielding someone who played a pivotal role in this scheme”.
Being scammed had shattered more than her finances, she said.
“The guilt, shame, and embarrassment that followed being deceived in such a calculated way has been overwhelming. It’s a betrayal that cuts deep.
“Being caught up in something like this shakes your trust in people, in systems, and in yourself.”
O’Neil was one of the first investment scam victims to go public with her story after a wave of fraud cases in late 2022 and early 2023.
She helped spearhead a victims’ group that has highlighted failures in the banking system, calling for compensation and better safeguards to protect customers.
Last year, the Banking Ombudsman ordered O’Neil’s bank – BNZ – to reimburse nearly $300,000 to her and another victim, Borja Ares.
The Ombudsman ruled that BNZ missed crucial “red flags” concerning the scam and failed to act with reasonable skill in care.
Lane Nichols is Auckland Desk Editor and a senior journalist for the New Zealand Herald with more than 20 years’ experience in the industry.
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