Stephen Gerard Veralko, 51, former Senior Investment adviser with ASB, was found to have misappropriated funds to the tune of nearly $18 Million. This was allegedly done through over 100 fake transactions and fictitious investment opportunities between 2003 and 2009, as unearthed by the SFO.
He was presented before the Auckland District Court and faced three charges, two for fraudulent transactions and one for fictitious investment schemes. In his defense, his lawyer, Stuart Grieve, QC said that Veralko has been co-operating with the authorities ever since August when the frauds were discovered. Versalko has been released on bail following a Takapuna address. He is to reappear in January 2010.

SFO director Adam Feeley, confident of a timely action says, "In tough market conditions there is a legitimate public expectation that law enforcement agencies will act in a timely manner to prevent or minimise the impacts of crime on society". This fraud, when proved, will be bigger than the one in March involving Otago District Health Board IT Manager, Michael Andrew Swann, who was jailed for misappropriating $ 16.9 millionn through fake invoices.

The bank, ASB, is not commenting on the case apart from saying that all customers affected have been repaid and the bank has set up new security protocols and practices to protect its customers in future.