Desperately short of cash, Christchurch property developer Seng Bou Keung borrowed $90,000 from his then girlfriend and then failed to make full repayment, conjuring up a story that she had agreed to put money into a property development.
Mr Keung, also known as Paul Keung, is recorded on Insolvency Service’s bankruptcy register as having been bankrupted twice: in 1997 and 2010.
The High Court was told Mr Keung was under severe financial pressure in late 2020. Girlfriend Leisha Connolly came to the rescue giving him $90,000. The two had been in a relationship since late 2018. This relationship came to an end shortly after payment of the $90,000. A dispute over repayment led to a District Court trial and a subsequent High Court appeal.
The trial judge ruled this $90,000 payment was a loan. Mr Keung had made some repayments. He was ordered to pay the balance of $49,000.
The High Court confirmed it was a loan, with $49,000 still owed. Email exchanges subsequent to payment of the $90,000 made it clear it was a loan. Mr Keung’s protestations that he did not need a loan as he was not under financial pressure at the time were dismissed at trial as ‘totally implausible’ and ‘bordering on farcical.’ His claim that partial repayments were in fact a salary paid Ms Connolly in respect of their supposed joint venture property development was not supported by any evidence.
His further claim that Ms Connolly would be repaid later, having agreed her money was part of a joint venture in development of a property in the Christchurch suburb of Somerfield was dismissed as lacking any evidence in support.
Mr Keung said coding on his bank statement describing the $90,000 payment as an ‘investment’ was evidence that Ms Connolly was making a joint venture investment. She said this wording was used instead of ‘loan’ at Mr Keung’s insistence; he wanted to hide existence of the loan should banks look at his bank statements as part of their due diligence when he was seeking bank finance.
Keung v. Connolly – High Court (29.08.23)
23.145