New Birkenhead home, Rolls Royce giveaway - police continue exam of Citizen Yan
Yan's quest for living expenses continues.
See also: What Citizen Yan wants
A lawyer for the police has questioned William "Citizen" Yan over a Rolls Royce he gave away, a new Birkenhead property and milk powder companies as the controversial businessman continues a bid for living expenses.
Mr Yan, who also goes by the alias Bill Liu, is giving evidence today (through a interpreter) before Justice Geoffrey Venning in the High Court at Auckland.
About $40 million worth of assets were frozen in August following a police raid on his Metropolis apartment. The Police have said the freeze was in relation to an investigation into money laundering but have not laid charges so far.
Under cross-examination from police lawyer Mark Horborow, Mr Yan was questioned over a 2012 Rolls Royce. The Police say that the company held the car on trust for LY Investments before Mr Yan gave it away.
When asked who he gave it away to, Mr Yan said he could not pronounce the last name of the man called Tony. When asked if this man was associated with Mr Dotcom, Mr Yan confirmed that this man knew Mr Dotcom.
"It would be unlikely for you to just give this away – you must have been paid something or alternatively be owed something for this vehicle," Mr Harborow said.
"It sounds logical, what you are saying, but it is not true. This person has had a good relationship with me so that he can have his company go to the sharemarket in Hong Kong. This is part of Chinese culture between the businessmen."
Living arrangements
The police allege that Mr Yan is planning to build a residence in Auckland's North Shore. However, Mr Yan said a Birkenhead property purchased by company Marmande Investments was not for him. The property is valued at $1.75 million according to council valuations.
Mr Horborow produced building documents, which he asserts shows the building to be developed on the land is for Mr Yan.
The documents call the project the "Liu family residence" but Mr Yan told the court that both he and developer Chris Cook had worked on the architectural detail.
Mr Yan says the property is to be developed and sold. Only if the property did not sell and he had enough funds would he buy the property.
"At the moment it is Chinese people who can make expensive purchase of property. As I understand Chinese mentality, George asked me to get involved.
"Because I understand what Chinese people like, so I know what kind of design would be suitable for the property," he said.
Mr Yan had applied for money to help with the mortgage on the Metropolis apartment in which he resides. The property is owned by Kai Ng, who also goes by the name Dominic, the court heard.
The businessman said he was in debt to Mr Ng and expected to buy the apartment from him when he was able. He said while Mr Ng had paid the mortgage in the past, he didn't want to pay for it anymore, and the mortgage payments would be in arrears as of this month.
Mr Yan said as a result of the seizure of his assets Mr Ng had changed his mind and no longer wanted to help him.
It was not clear from the interchange how Mr Ng intended to transfer the payments of the mortgage to Mr Yan.
Rich List lending
Mr Harborow also asked Mr Yan about a loan agreement between Marmande and Rich Lister backed New Zealand Mortgages & Securities signed in July this year. NZMS is backed by NBR Rich Lister Ted Manson.
The court heard that Mr Yan guaranteeed a $1 million loan for Marmande.
"NZMS believes that I am a rich person and they believed that I am a trustworthy person as well," Mr Yan said of the agreement.
Milk powder interests
Mr Yan was also questioned over his relationship with NZ Quality Foods, whose director, Xian Song, is also a director of Marmande.
"Because I have an interest in Gallinas, which wants to set up a milk factory. In future if opportunity exists we are going to sell our products to [NZ Quality Foods]," he told the court.
He also confirmed he helped set up NZ Dairy Resources, although his wife did most of the work.
The businessman was quizzed over millions in payments received by LY Investments from East Treasure, a company incorporated in the British Virgin Islands. Mr Yan said he did not own any part of that business.
Mr Yan said the company's director, Hong Xu, was his friend and that he had borrowed money from him, and that Mr Xu had held Mega shares for him through FM International.
"Apart from being friends, we have a business relationship as well. We have business relations."
The proceedings continue.
Previously: Citizen Yan says Porsche not for him but for Albany Heights company car
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Victoria Young
Mon, 08 Dec 2014
Mon, 08 Dec 2014
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New Birkenhead home, Rolls Royce giveaway - police continue exam of Citizen Yan
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