Million-dollar scam: Auckland businessman caught laundering victims’ life savings

 A high-flying Auckland businessman has been caught funnelling millions in a sophisticated money laundering scheme. With victims losing their life savings and authorities cracking down, this case shows that even in New Zealand, one of the  world's most stringent AML legislative countries, money laundering still happens.

The scheme: laundering through bank transfers

Money laundering operations often rely on unsuspecting individuals to move illicit funds and Auckland businessman Carel Johannes Viljoen found himself at the centre of such a scheme. The 61-year-old, a principal at infrastructure giant Beca, was convicted after receiving nearly $2 million from victims of an investment scam and transferring the funds overseas.

Authorities say Viljoen opened a Westpac account in January 2023 and facilitated large financial transfers while earning approximately $60,000 in commission. Despite his claims that he took steps to verify the transactions, the court ruled that he ignored multiple warning signs and acted recklessly.

The takedown: court verdict and exposure

Following an investigation by the Auckland City Financial Crime Unit, Viljoen was charged with two counts of money laundering. His trial in the Auckland District Court revealed how he was recruited by his brother in South Africa and agreed to act as an intermediary for large cash deposits.

The jury heard evidence of Viljoen’s unease with the scheme. In a police interview, he admitted: “I don’t trust it. This has to stop because there’s something not right about those amounts.” Despite his misgivings, he continued facilitating transactions. His own admission, “I was thinking about money laundering” was key to the prosecution’s argument that he knowingly took risks.

His own admission, “I was thinking about money laundering” was key to the prosecution’s argument that he knowingly took risks.

After three hours of deliberation, the jury found Viljoen guilty on both charges. Judge Stephen Bonnar, KC, lifted interim name suppression, stating that Viljoen’s offending was serious and the public had a right to know.

Organised fraud and financial crime

The case highlights the increasing prevalence of sophisticated online investment scams. The victims, Northland retiree Steven Fan and pensioner Anthony Lipanovic, believed they were investing in high-yield bonds backed by the Commonwealth Bank of Australia. The fraudsters created a convincing website, Magnitude Financial, complete with fabricated media endorsements and official-looking prospectuses.

Fan transferred just under $1 million on January 13, 2023, while Lipanovic sent $950,000 a week later. While approximately $500,000 was recovered, the bulk of their savings was lost.

Testifying in court, Fan said, “I spent ages on the website checking the links and I thought it was okay. All these things are complicated to me. I’m not a businessman.”

Lipanovic provided a police statement before his passing, detailing how he had also been deceived by the scam’s apparent legitimacy.

Legal consequences and asset recovery

Viljoen faces up to seven years in prison, with sentencing set for June. His lawyer has indicated he will seek a discharge without conviction, arguing that Viljoen acted foolishly rather than criminally. Defence counsel Matthew Goodwin described his client as a respected professional who had been misled by his brother and inadvertently drawn into an illegal operation.

“You should be extremely wary if someone approaches you wanting to do a deal where you receive and move money to different bank accounts in exchange for a fee. Money laundering is a criminal offence.”

However, Detective Senior Sergeant Craig Bolton of the Auckland City Financial Crime Unit rejected this characterisation. He said Viljoen pocketed $61,581 in commission, funds that have since been returned, but stressed that money laundering is not a victimless crime.

“You should be extremely wary if someone approaches you wanting to do a deal where you receive and move money to different bank accounts in exchange for a fee. Money laundering is a criminal offence,” Bolton said.

A growing problem at a pivotal time

Authorities are investigating several other money laundering cases linked to fraudulent term deposit scams. Financial crime experts warn that scams targeting retirees and investors are becoming more sophisticated, often leveraging fake online profiles, official-looking documents and social engineering tactics.

The string of cases comes at as time when New Zealand is enacting the second of three changes to the stringent AML laws, highlighting the ongoing struggle between balancing the burden on "gateway" professions (lawyers, accountants and real estate agencies) and protecting innocent victims.

With Viljoen awaiting sentencing, the message from authorities is clear: ignorance is no defence when it comes to money laundering.