Westpac acts over A$11 million funds transfer error

SYDNEY - Westpac, the Australian bank, has begun legal proceedings against former customer Victor Ollis, an estate agent from New South Wales, over a dispute concerning A$11 million ($8.9m) that was mistakenly transferred into his account over a two-year period.

Ollis had an automatic sweeper facility with Westpac, which routinely topped up his business account using money from his personal account. Even though Ollis's personal account became overdrawn, the bank continued to transfer money to his business account from its own funds. Ollis admits to writing cheques with money found in his account, but he denies fraud. Westpac honoured cheques totalling A$11million between June and December 2005 before discovering the mistake in January 2006.

The bank is also suing Ollis's partner, Gail Shields, who received A$4.8million in funds transferred into her account from his.

Shields is defending the case, saying she believed the money legitimately belonged to her partner. Both Ollis and Shields have had their assets frozen by the NSW Crime Commission.

The case continues.