N.Z. man centre of fraud inquiry
By
NICK BROWN,
NZPA staff correspondent Sydney New South Wales fraud squad detectives are investigating the affairs of a New Zealand businessman who disappeared allegedly owing more than sAust2o million (S24M), to various financial institutions. .iTHe case has shaken the Australian finance industry into an urgent review of its credit-checking procedures, the “Times on Sunday” newspaper reported yesterday. It said at least 25 credit com-
panies, four merchant banks, and two trading banks were victims of alleged fraud, involving a leasing scheme based on false invoices for machinery and equipment.
At the centre of the fraud squad inquiry is a New Zealander, Larry Tagg, managing director and main shareholder of a Sydney muffler business, Tonal -Distributors 1982 Pty, Ltd, which went into provisional liquida.tion on January 30.
The “Times” said Mr Tagg disappeared when the company collapsed, but the police traced him
to London where he was under surveillance. Mr > Tagg, aged 37, bought Tonal Distributors in 1982 and developed it from being solely a distribution firm into a manufacturing business in 1985. He employed 95 people in the company’s Sydney factory and had distribution outlets in Queensland, South Australia and Melbourne. Repossession agents moved into the factory on January 30, the day after staff saw Mr Tagg for the last time. “These 15 gorillas employed by the repossessors just stormed in and took over,” said the general manager, Mr Barry Toy. “It was gut-wrench-ing to watch all you had built up disappear overnight. “We tried to control it. We tried to phone Mr Tagg but were told he had gone out for the evening. We never heard from him again.” Mr Toy said there was no retrenchment pay and life insurance payments deducted from wages since last June had never been deposited. Mr Tagg’s business affairs spilled over into New South Wales politics after he approached the Premier, Mr Barrie Unsworth, late last year to arrange a meeting for him with the state bank. Mr Unsworth disclosed this in the state Parliament on February 13 in a statement denying an allegation that he had been* offered “a kickback of $1 million” to help Mr Tagg secure a $5 million loan from the state bank.
Mr Tagg met bank officials on December 9, but his loan application failed, the “Times” said.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19870223.2.8
Bibliographic details
Press, 23 February 1987, Page 1
Word Count
387N.Z. man centre of fraud inquiry Press, 23 February 1987, Page 1
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.