Alleged Westpac offender arrested in Hong Kong

A 30 year old Chinese/New Zealander has been arrested in Hong Kong in relation to the theft of $6,782,000 from Westpac bank in April 2009.

The man was stopped by Hong Kong border patrol as he was crossing into Hong Kong from China at Lok Ma Chau. He was subsequently arrested by members of Interpol on a warrant relating to New Zealand theft and money laundering charges.

He was due to appear in a Hong Kong court this afternoon (New Zealand time).

The arrest comes following a two and a half year Police operation into the theft, which allegedly occurred after a $10 million overdraft facility was mistakenly loaded into the man's business account.

A 32 year old woman, Kara Hurring, was arrested on related charges when she re-entered New Zealand earlier this year. She is due to stand trial in February 2012.

It is alleged that the man transferred $6,782,000 of the money into other accounts, and then the couple both left New Zealand for Hong Kong – the man on 29 April and Ms Hurring on 3 May. The error was discovered on 5 May, with approximately half of the money recovered from New Zealand accounts, leaving an outstanding sum of $3,872,000 unrecovered.

The officer in charge of the investigation, Detective Inspector Mark Loper, says Operation Westpac has remained a very active investigation over the past 36 months, involving a number of New Zealand Police staff from Rotorua, around New Zealand, in China and Hong Kong.

"There has been a significant amount of work underway behind the scenes – but for obvious reasons we haven't been in a position to discuss it."

Detective Inspector Loper says this latest development is a demonstration of that ongoing work.

"Even after Ms Hurring's arrest, our focus remained on eventually being able to speak to the other alleged offender. The arrest in Hong Kong yesterday reinforces the determination and tenacity of NZ Police and our investigation team and I'd like to acknowledge the hard work of everyone involved."

Detective Inspector Loper says that work does not finish with the arrest yesterday, and it is not yet known whether extradition proceedings will need to commence, as the arrested man will be given the opportunity to return to New Zealand voluntarily.

He says further details about the next steps in the case will not be known for some days.