6 September 2016
Former solicitor lied to reduce his debt
Former solicitor Edward Errol Johnston who is facing charges laid by the Serious Fraud Office (SFO) has appeared in the
Auckland District Court to enter a guilty plea.
Mr Johnston appeared to answer three Crimes Act charges of ‘Dishonestly taking or using document’. He pleaded guilty to
all three charges.
During the period December 2011 and January 2012, Mr Johnston owned properties in the Auckland area and had fallen into
arrears on his loan repayments to his bank. When faced with a requirement to reduce his existing debt, Mr Johnston
manipulated the system. He submitted false Sale and Purchase Agreements to his bank. The bank accepted the fictitious
transactions. In reality, the properties were either sold for a higher price than he had stated, or transferred to
another Trust and refinanced with a loan from another bank. In January 2012 Mr Johnston submitted a false Statement of
Assets and Liabilities to the bank when obtaining the refinanced loan.
SFO Director, Julie Read said, “These offences occurred as a result of an attempt to avoid a troubled financial
situation. The reality is that in deceiving the bank Mr Johnston has placed himself in a much more serious position
which will result in a criminal conviction. Such a course should never be considered as a viable option and the SFO will
prosecute all serious fraud matters brought to our attention to protect other investors and New Zealand’s reputation as
a corruption free market.”
Mr Johnston will appear for sentencing in the Auckland District Court on 10 November 2016.
ENDS