The two money laundering counts relate to Hurring setting up a ``player'' account at a casino in Macau, where two deposits were made totalling more than $NZ340,000, money that could be converted into chips for gambling or to pay for services including accommodation and food.
Jason Schall, vice president of the legal section of Wynn Macau Ltd which develops and operates casinos and hotels in Macau, travelled to New Zealand to give evidence yesterday.
He told the court a "player'' account was set up in the name of Kara Hurring and two deposits totalling 1.5 million Hong Kong dollars ($NZ347,680) were made. The money was transferred from a New Zealand bank to a bank in Hong Kong before being depositing into the casino account. The deposits were made by Gao.
Two withdrawals - of 1.5 million Hong Kong dollars and 500,000 Hong Kong dollars - were made and converted into chips. Several bets were made from Hurring's "player account'', ranging from 3000 to 32,500 Hong Kong dollars. She lost 101,000 Hong Kong dollars.
"We don't know where the other 1.4 million [Hong Kong dollars] went,'' Mr Schall said.
The evidence of Westpac employee Wendy Wang was read to the court. She said she received a call from "a mature man in his 40s or 50s'' in China who said someone was stealing money.
"He mentioned $100,000 but someone was stealing more.''
The caller said two zeroes had been added and he mentioned $10 million. He told her a person had taken $4 million to $5 million and asked for a reward.
She said she hadn't believed it was true and told the caller she had no authority to give a reward.
Evidence from directors of several finance companies has been read to the court detailing deposits and transfers by Hurring's partner Leo Gao to several Chinese banks. Evidence was also read relating to transactions made with a bank card in Auckland between April 30 and May 3, 2009.
In his evidence Westpac manager of finance crime and intelligence section, Stuart Hansen, said the bank didn't find out about the $10 million error, which was made by a Christchurch staff member, until it received a tip-off on May 4, 2009, two weeks after the $10 million was loaded. The bank contacted other banks that were receiving money and dishonoured the funds.
He said the banks were advised the funds were stolen and that what was happening amounted to money laundering. Mr Hansen said $2.9 million of the $6.7 million had been recovered.
During cross-examination by Hurring's lawyer Simon Lance, Mr Hansen said steps had been put in place by the bank to ensure similar mistakes would not happen.
