Couple missing after bank makes $10M mistake

A Rotorua, New Zealand couple who fled the country after receiving millions of dollars in a banking error told a friend they were going on a holiday before disappearing.

Rotorua police and Interpol began an investigation yesterday into the disappearance of the money, thought to be $6 million.

It is believed they had applied to Westpac Bank for a $100,000 loan but an error by an employee mistakenly deposited $10M into their account.

Detective Senior Sergeant David Harvey of Rotorua CIB said police and Westpac were investigating the "inappropriate operation" of a Rotorua business account where money had been withdrawn.

Mr Harvey said the account holders had gone overseas and Interpol was working to find them.

He would not confirm how much money was missing but said some believed to be about $4m had been recovered.

The money's disappearance is believed to be connected to a Rotorua BP service station, part-owned by one of the missing couple, which went into receivership on May 8.

The unnamed couple, believed to be Korean Leo Gao and his Kiwi girlfriend Kara Young have not been seen since.

The service station traded as Barnett's BP and was registered in the Companies Register under Heights Services Ltd. The company directors are named as Hui Gao and Huan Di Zhang.

Leo Gao lived in a house close to the service station, with other family members. The unoccupied, furnished house has been for sale for $220,000 since October.

Helaine Aim, owner of neighbouring business St Andrews Bakery, said she was friends with the couple, who she referred to as Leo and Kara, and saw them daily.

She said she last saw them two weeks ago.

"I would go and have coffee with them at their house. They told me they were planning a holiday. I did not see them for a couple of days. I thought it was a little strange but didn't think much about it because I thought they were busy preparing for the holiday."

Mrs Aim said the couple told her they had applied for a loan to refurbish the service station which they were then going to sell.

Westpac's Craig Dowling could not say how the error occurred as the matter was under police investigation and subject to court action.

He declined to say if staff had been censured over the incident.

"I can say we've also been doing our own internal investigation and one of the outcomes ... has been to increase the checks and balances so it doesn't happen again."

The bank said a "substantial amount" of the money had been recovered, and it was "aggressively pursuing all avenues" to recover the rest.

Westpac had hired a private investigator, Mike Dingwall, to conduct inquiries, the New Zealand Herald said.

Mr Dingwall reportedly told staff of a nearby business he had proof Mr Gao had left the country and that records showed Ms Young had used his credit card in Auckland on May 6.

Chevi Lambert, manager of Andy's Cellar, said she understood Ms Young had not fled New Zealand and was with her mother in Blenheim, however police confirmed she had left the country and was still wanted by authorities.

Ms Young's mother, Suzanne Hurring, owns Michel Hair Dzine in the Queen Market Mall in Blenheim.