Fraudster buys $16 million in property

Electronics retailer Clive Peeters has revealed a staff member bought about 40 properties worth in excess of $16 million using funds misappropriated from the company.

Clive Peeters Limited (CPR) says it discovered discrepancies in its payroll accounts in July.

It subsequently started legal proceedings against a staff member alleged to have falsified entries in the company's payroll accounts, transferred cash out of the business and used those monies to buy and sell real estate.

In a statement on August 24, the Clive Peeters said about 40 properties were in the process of being transferred into the company's name, including the property where the staff member was living.

"It's not known how much money will be recovered or realised by CPR as a result of these steps," the statement said.

"This will depend on the prices at which the properties are sold, although present estimates indicate that the net amount recovered from the sale of assets will be in excess of $16.4 million, after allowing for discharges of mortgages and transaction costs.

"Out of this recovery, CPR will also have to bear significant legal, investigation and other costs as a result of the misappropriation of cash, and these are estimated to approximate $1.8 million.

"At this stage, investigations indicate that the total amount of cash misappropriated is approximately $19.4 million."