Lawyer gets home detention
The actions of a lawyer involved in a fraud that misled ANZ into providing a property development company with a $40 million loan were a ‘‘gross breach’’ of trust, a judge has found.
Timothy Slack, 55, was one of four men charged by the Serious Fraud Office (SFO) in relation to the development of the Waldorf Celestion Apartment Hotel in Auckland.
Earlier this month he pleaded guilty to one count of obtaining by deception.
He was sentenced yesterday at the High Court in Auckland.
Justice Kit Toogood said he would be ‘‘very surprised’’ if Slack did not lose his licence.
He sentenced Slack to 10 months of home detention.
Prosecuting for the SFO, John Dixon, QC, said: ‘‘Someone who has the advantages of working in the law just ought to have known better.’’
A former bankrupt, Slack, qualified a loan to ANZ by confirming all the information in an application was correct.
Slack’s co-accused, property developer Leonard John Ross, director Michael James Wehipeihana and consultant Vaughn Stephen Foster, would face trial next June.
The SFO has alleged the defendants made false statements and used forged documents to obtain a credit facility from the ANZ to allow the company Emily Projects to develop the hotel.
It was alleged this loan was worth about $40m.
In February, SFO director Julie Read said the four were accused of conspiring to mislead the bank.
‘‘The banks are entitled to expect that businesses will provide accurate information in support of their loan applications and a failure to do so may have cost implications for all.’’