The Bank of New Zealand, based in Wellington, has filed a U.S. District Court suit against a Summit County man seeking to collect more than $1.7 million.
The suit names Raymond William Smith and Orewa Development Inc., a company he incorporated with his son, Sean Raymond Smith, according to the suit. Sean Smith was not mentioned further in the suit.Smith was a director of Auckland Coin and Bullion Exchange, a New Zealand corporation later known as Goldcorp Exchange. On March 2, 1987, the exchange loaned Smith nearly $1.7 million, the suit adds.
The Bank of New Zealand had funded the loan and took as security all of the exchange's rights and interests in the loan.
Under the loan agreement the principal was due on April 30, 1988, with interest accruing thereafter at 18.6 percent, it says. "Smith failed to pay the outstanding balance when due," it adds. Except for one payment of about $77,000, he failed to satisfy the obligation, the suit says.
The High Court of New Zealand entered a judgment against him in the amount of $2.9 million, New Zealand currency, which is equivalent to 1.7 million U.S. dollars, it says.
The suit says Smith transferred property to Orewa without receiving equivalent value. The property includes three helicopters, a 1989 Ford Tempo, a 1989 Jeep Wagoneer, and "cash in an undetermined amount deposited by Smith into an Orewa checking account maintained at First Interstate Bank in Park City."
The suit asks for a judgment against Smith for the amount owed and interest at 18.6 percent until paid.