It's fascinating how the the people who embezzle big time spend their ill-gotten gains. The details of the way Eric Watson and Mark Hotchin or Watshot carry on have been widely reported, then the ASB Bank "investment advisor" who over a decade spent $17.8 million, among other things, on flash houses, wine, prostitutes and lawyers (see post of 19 March 2010).
Now we have Gavin Bennett, above, who yesterday pleaded guilty in the Christchurch District Court to frauds totalling a staggering $103 million.
from the National Business Review:
The charges, brought by the Serious Fraud Office, concerned Mr Bennett's use of his company DataSouth to run a Ponzi-style network of loans from South Canterbury Finance between 2005 and 2011 in order to sustain a lavish lifestyle.
The offending caused losses to the collapsed finance company of $23 million.
Mr Bennett channelled $7.8 million to personal New Zealand and Australian bank accounts or credit cards used for personal expenses during the period of offending.
These proceeds, according to the SFO, were spent in part on:
- $A900,000 in regular payments to “various female companions”
- $A463,000 in rental payments for luxury apartments with views of the Sydney Opera House
- $A429,000 on food and beverages, with a significant proportion at the upmarket gentleman’s club Hemmespheres.
- $A161,000 on international air travel for himself and companions to New York, Las Vegas, Paris and London.
- $A163,000 on designer clothes from Louis Vuitton, Cartier, Chanel, Georgia Armani, Gucci, Harrods in London and Bloomingdales in New York.
- $A53,000 in corporate taxi expenses, understood to include the regular hiring of limousines.
Mr Bennett is remanded in custody until sentencing on May 3.
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