2 Dec 2010

Kapiti businessman jailed three years for fraud

3:43 pm on 2 December 2010

A Kapiti Coast businessman who made false loan applications in the name of his clients, leaving a finance company $1 million out of pocket, has been jailed for three years.

Alan Wycherley, 52, was sentenced in the Wellington District Court on Thursday, having earlier pleaded guilty to a charge of conspiring to use documents for pecuniary advantage and two other charges.

In 2004 while bankrupt, Alan Wycherley set up a budget advice business and appointed Keith Mackie as a director.

Between 2004 and 2006, their business made more than 1000 false applications for loans to Lumley Finance without their clients' knowledge.

A circular flow of money followed, with later loans repaying earlier ones. But the scheme collapsed and $1.2 million out of $3 million extracted from the Lumley Finance could not be repaid.

The judge also ordered Wycherley to pay $30,000 in reparations to the finance company.

Keith Mackie escaped a jail term in May this year. A judge sentenced him to 10 months' home detention, 150 hours' community service and ordered that he pay $10,000 reparation.