$17.8m rip-off was easy, says ASB swindler

Stephen Versalko was sent to jail for six years after stealing $17.8m from 30 ASB Bank customers.

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The ASB investment adviser who stole $17.8 million from customers has said the swindle was so "easy" that "anyone could have committed the offence". He has offered to help his former employer and the Serious Fraud Office to prevent other rip-offs.

Stephen Versalko, 52, was last week jailed for a minimum four years for running a scam in which customers' money was supposedly placed in high-yield investments, but was in fact siphoned off to fund his lavish lifestyle.

At Thursday's sentencing it was revealed that over the nine years he ran the scam Versalko spent $3.9m on properties in Remuera and Coromandel, $1m on cars, family trusts and education fees, and $300,000 on wine. The married father of three also spent $3.4m on two prostitutes.

But in a letter to ASB's chief executive Charles Pink on March 16, two days before his sentencing, Versalko said he wanted to help ASB "in any way possible".

"The years ahead are going to be very difficult, however I want to make amends even if only in a small way," he wrote. "My concern is that anyone could have committed the offence."

Versalko was caught out only because last August one of the 30 duped customers saw a documentary about US mega-fraudster Bernie Madoff. The customer grew concerned about parallels between Madoff's "fobbing off" of anxious investors and her experiences with Versalko. When she phoned ASB to discuss her fears, the scams were uncovered.

In Versalko's letter to the ASB, he claimed to have not planned the crime. "An opportunity arose and I crossed the line. It was easy for me to disguise my fraud and I would like to assist you and the Fraud Team at ASB to prevent this happening again."

Versalko said he would forever be sorry for the "anguish I have caused you, the clients, the wonderful colleagues and staff at ASB. You are a well respected bank and I let you all down."

In another letter, to the Serious Fraud Office, Versalko offered to be of service to the agency. A source close to the investigation said Versalko's offer was unlikely to be accepted.

Versalko's pre-sentence report shows the fraud began after he realised he had got away with stealing $40,000 to cover a credit card bill. The report says the driving force behind Versalko's offending was a "sense of entitlement".

"Mr Versalko stated he 'became greedy' and his offending spiralled out of control as he was misappropriating more and more funds," it said. He told the probation officer: "I knew what I was doing ... and deep down I knew I'd eventually get caught." He admitted his offending when questioned by ASB in August 2009.

Last night, ASB could not be reached to comment on Versalko's claims the bank's system was easily duped, but a statement after sentencing said changes had been made to "further strengthen" security. An SFO source was dubious of his claims the system could be manipulated by "anyone".

"[Versalko] was senior and in a position where he was authorised to make transactions over a certain amount," the source said. "He was going down to a teller and saying `can I use your terminal for a bit?"' Despite Versalko's fall from grace – and the revelations of multimillion-dollar spending on prostitutes – many friends and relatives have supported him, including his wife Megan.

A source close to the family said Versalko's children were "shocked" at revelations their dad had spent millions on sex workers but were standing by him. They had hidden their Facebook profiles and changed cellphone numbers to avoid media.

Versalko's brother Greg says Megan was standing by her man.

Since Versalko was sacked, Megan has had to find full-time work. Last week a newsletter from her work said staff were "thrilled" she had agreed to a "permanent position". Her profession and workplace are suppressed.

In a letter to the court, Versalko's mother-in-law described him as "supportive, kind and considerate". Raewyn Daisley said Versalko "has been an integral part of our strong family life for 26 years".

Despite his misdeeds, she held him "in high regard" and "greatly admired his strong family values and strong parenting skills".

HOW TO ENSURE YOUR MONEY IS SAFE IN THE BANK

Be wary of any promise of a stated return. Most investments go up and down along with the market.

Question offers pitched as "exclusive" or for "special customers only".

Monitor your account via online or telephone banking. Versalko's victims were receiving information on their "investments" only in direct communications from him.

Do your research on any investment scheme and shop around. If a scheme is offering returns markedly above others or it is difficult to understand how it makes money, seek independent advice.

If you suspect problems with an investment, act quickly. Fraudsters with time can move assets and erase records.

If in any doubt, ring your bank to query transactions.

- © Fairfax NZ News