Little visibility on bankrupt builder who tried to flee to
China, gambled $20.5M at SkyCity

By Jonathan
Underhill

June 14 (BusinessDesk) – Li Dong Xie, the
Auckland builder jailed for breaches of the Insolvency Act,
has left little online trace of his illegal ventures which
the Crown says deprived hard done-by creditors.

Xie was
bankrupted in July 2010 for failing to pay back debts
incurred in the course of running his building business, New
Town Home Construction Ltd, which last filed a return in
September 2014 and has since been deregistered. He was
listed as shareholder and director.

Official Assignee Ross
van der Schyff said in a statement that Xie “showed a
reckless disregard for his obligations as a bankrupt, which
had been made clear to him by the Official Assignee.”

The
NZ Herald cited court documents that showed Xie gambled
$20.5 million at SkyCity Casino between December 2010 and
August 2015, funds which would have repaid creditors who
were seeking retribution.

Xie was arrested at Auckland
Airport for offences including running a business for five
years while a bankrupt, generating about $1.5 million in
earnings which he gambled away through slot machines at
SkyCity Casino. He tried to board a flight to China despite
having been told he couldn’t leave the country without the
Official Assignee’s consent, according to the government’s
insolvency website. Xie had pled guilty to 10 charges under
the Insolvency Act

The charges included concealing
property, gambling, acting as the director of a company
without the consent of the OA, obtaining credit, attempting
to obtain credit, obtaining property on credit, failing to
file a statement of affairs, and attempting to leave New
Zealand without the consent of the OA.

The government has
allowed closer scrutiny of transactions involving foreign
entities while tightening entry criteria. It also recently
began a new snapshot of home ownership transfers involving
overseas parties. Lasts week Stats NZ released figures
showing that in the first quarter, just over 3 percent of
home transfers were to people who didn’t hold New Zealand
citizenship or resident visas, Stats NZ said today. The
proportion of homes transferred to overseas people rose to
3.3 percent in the March quarter, from 2.9 percent in the
December 2017 quarter, it
said.

(BusinessDesk)

© Scoop Media

 



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