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A multi-million dollar fraud case involving a local clothing manufacturer with ties to Adidas has now been exposed in excruciating detail.
The director of a local clothing manufacturer with ties to Adidas has admitted fraud, following a lengthy investigation by authorities.
Former director of Lane Walker Rudkin Industries Limited and associated entities (LWR Group) Kenneth James Anderson has pleaded guilty to multi-million dollar fraud charges laid by the Serious Fraud Office (SFO) in New Zealand.
The 61 charges, which follow a 21-month investigation, include allegedly fabricating financial documents to gain loans worth $118 million from Westpac and using fake documents to gain funds with a letter of credit facility from Westpac.
Anderson was the sole director of veteran clothing manufactor Lane Walker Rudkin when it went into receivership on on April 28, 2009 owing approximately $120 million, the majority of which is owed to Westpac New Zealand Ltd.
Lane Walker Rudkin Industries Limited and associated entities (LWR Group) once supplied jerseys for some of New Zealand's top sporting teams and also previously manufactured under contract to Adidas and was associated with brands such as Canterbury and Jockey.
As part of the ongoing investigating and court procedure, the SFO has also provided key details and a timeline of events leading up to the guilty plea by Anderson. As below.
Lane Walker Rudkin Group : Case No 1789
Background
Lane Walker Rudkin Industries Limited and associated entities (LWR Group) were placed into receivership on 28 April 2009 owing approximately $120 million, the majority of which is owed to Westpac New Zealand Ltd.
After considering a complaint received from the receivers, BDO Spicers, the Director determined that an investigation into the affairs of LWR Group may disclose serious or complex fraud. An investigation under Part II of the Serious Fraud Office Act was commenced on 17 September 2009.
Progress of Investigation
October 2013
Mr Anderson has entered guilty pleas in the Christchurch District Court to charges of dishonestly using a document and false financial statements. Mr Anderson will be sentenced on 25 November.
The remaining defendant continues to face charges in a trial that commenced in the Christchurch District Court on 14 October.
June 2013
At the callover on 14 June the orders for a Judge alone trial were granted.
May 2013
At the callover on 2 May the decision on a judge alone trial was deferred. This matter will be advanced at the next callover set down for 14 June.
April 2013
At callover on 5 April a trial date was set for 14 October 2013. The trial has been allocated a period of four weeks.
The next callover will be 2 May when a decision will be made whether the trial will be by Judge alone or jury.
March 2013
The indictment has been filed. A callover is scheduled for 5 April where it is expected a trial date will be set.
July 2012
A memorandum was filed on behalf of Mr Anderson stating the defendant would not proceed with his application for oral evidence order. The application for oral evidence order for the second defendant was heard before the Court, however this was refused. The case has been committed for trial. The indictment is due to be filed on 31 August 2012.
May 2012
Both defendants have filed application for oral evidence orders. This will require a hearing and we are currently waiting for the Court to allocate a date on which the defendants' applications will be heard.
July 2011
The SFO has laid 82 criminal charges against Lane Walker Rudkin Industries (LWR) director Kenneth James Anderson (64) and another individual.
Mr Anderson faces 61 charges under the Crimes Act, relating to allegations that he fabricated financial documents in order to obtain and retain lending facilities from Westpac New Zealand Limited (Westpac), ultimately totaling $118 million.
He is also facing a further 21 charges relating to the alleged use of fabricated documentation to obtain funds under a letter of credit facility provided by Westpac.
Another person, who has name suppression, is facing eight charges in relation to the letter of credit facility.
The accused are next due to appear in court on 16 October 2011.
April 2011
The SFO investigation into LWR is continuing but has been delayed by the ongoing circumstances in Christchurch following the September and February earthquakes which caused significant delays in interviewing parties associated with the case. The investigation is, however, expected to conclude within the next two months.
11 October 2010
The SFO has made good progress with its investigation into the affairs of LWR Group, and has interviewed a number of individuals. SFO was not intending to interview all associated individuals but if you have information you would like to discuss with the SFO, please make contact via the contact details below.