Fraudsters live high life on scam cash

By SCOTT INGLIS

Fraudsters running a $22 million international lending scam swindled an Indian businessman out of $124,000 and blew most of it on high living in Auckland.

The fraudsters persuaded the businessman to hand over the money in mid-February in advance of a $22 million loan but stole the cash.

Over four weeks, they spent it on lavish living, including renting a $1600-a-week St Marys Bay mansion, buying jewellery, leasing a Mercedes and chartering yachts during the America's Cup.

Their victim never received his loan. Police became aware of the group when another, potential victim overseas tipped off the Auckland company fraud squad by e-mail.

Two of the fraudsters, Indian man Sailesh Hiranandani and woman Sonali Joshi, this week admitted their role in the scam and pleaded guilty to various fraud charges in the Auckland District Court.

Hiranandani was fined $3500 and ordered to repay the Indian businessman $104,000. Joshi was fined $1500.

An accomplice testified against her associates and was given permanent name suppression.

Police are seeking a British woman, Kelly Alison Mullen, who has disappeared.

Detective Sergeant Wendy Riach said the group marketed themselves as international lenders.

They met potential clients in London, Hong Kong, Dubai and Cyprus. They shifted to New Zealand and set up two registered companies, AKT Finance and AKT Trading.

In Hong Kong in January, they met the Indian businessman, who wanted to borrow about $22 million.

On February 16, the man arrived in Auckland from India and after various meetings paid a $104,000 fee and a further $20,000.

Detective Sergeant Riach said the fraudsters then lived the high life. "They seemed to be spending all the money themselves. They lived in the flashest of accommodation and had a high old time."

They lived in the mansion they rented in St Marys Bay Rd, ate at restaurants, chartered yachts, leased two cars - one the Mercedes - and hired a driver and two other staff.

After being tipped off, detectives raided the group's swish Grafton offices, seizing documents and passports.

The group's hired driver, Adele Nelson, said Hiranandani then ordered her to drive him to Hamilton on March 16, where she dropped him off in the main street so he could escape.

But he and Joshi, through lawyers, reached an agreement with the police and were prosecuted.

Mrs Nelson says the group owes her more than $2000, and that two other women who worked for it are also out of pocket.

Kelly Mullen, meanwhile, remains at large. Police say she may be "able to shed more light on how the scam had been operating."

Mrs Nelson said she liked her and even drove her to church.