China chasing embezzled money in New Zealand

AUCKLAND - China has been trying to trace millions of dollars believed to have been illegally transferred to New Zealand by a Chinese man convicted of embezzlement.

Chinese authorities are trying to retrieve money and assets invested in New Zealand as part of a “trans-national money laundering scheme” run by Liu Guiting, a former head of China’s first publicly listed rail company. himaHe is now serving two life sentences in China after being convicted last year of misappropriating about $21 million of public funds, but the Chinese government believes he could have embezzled up to $500 million.

Guiting gained New Zealand residency in 2002 after he deposited $2 million in a bank account and bought property here through companies belonging to his wife and daughter, reported tvnz.co.nz.

Guiting’s wife, Limin Yang, and daughter, Jasmine Liu, who live in Auckland are under investigation for suspected money laundering, according to the Chinese justice ministry.

Friday, Yang appeared in Auckland High Court, which is hearing a case filed by her against Paul Chen, a former business partner she says breached fiduciary duty and misappropriated assets of her companies.

Chen is being held in China as a witness against Guiting.

A Chinese government lawyer sat in on the hearing and said that his government was interested in learning what happened to the stolen rail company money.

Up to $13 million may have been invested in New Zealand.

Yang told the court that her husband had transferred money to New Zealand that was used to purchase an $810,000 apartment in Albert St, Auckland, and $2 million to buy the Kiwi hotel and three other properties in Rotorua.

However, she said she did not know exactly where the money came from.

An affidavit to the court says that the Chinese ministry of justice wished to interview Yang and her daughter “over the evidence which has been uncovered linking them to the movement and control of the missing money”.

The report said that moves were under way to have Yang and Liu extradited to China.

Under a mutual assistance agreement, New Zealand police have also been trying for a year to track down Leo Gao and Kara Hurring with the help of Chinese officials, after the pair were believed to have fled to Hong Kong.

Rotorua service station owner Gao was mistakenly given a $10 million overdraft by the Westpac bank. They were able to take up to $4 million out of the country.