She used to be behind the wheel of a Ferrari. Now Lynne Carter drives a second-hand Toyota. But better news for the Auckland property developer and socialite is that a methamphetamine charge laid by police has been dropped.

Ms Carter is scheduled to appear in the Auckland District Court next month to defend two fraud charges, allegedly for using someone else's credit card to buy lingerie.

But a single charge of possession of methamphetamine has been withdrawn by police.

The 45-year-old was arrested in bizarre circumstances in July when she arrived at Dunedin airport from Auckland on a ticket carrying a false name.

Her behaviour led police to ask for identification. She refused to remove the black hat and scarf that obscured her face and told police she had left her bag in Auckland.

Later, police found her bag and alleged a small quantity of methamphetamine was found inside.

The dropped P charge will be welcome news for Ms Carter, who once had a $6 million waterfront mansion, a Ferrari and a booming property development business.

Three companies she owned were put into voluntary liquidation and neighbours in Argyle St, Herne Bay said tow trucks took her luxury cars.

The house was put up for mortgagee sale; valued at $6 million but sold for $4 million. Another home on Ring Terrace, valued at $2.8 million, sold for $2 million. Ms Carter now drives a 1995 Toyota.