Accountancy firm Grant Thornton, statutory managers of Allan Hubbard and his firm Aorangi Securities, say they are making good progress and will send a letter to Aorangi's 400 odd investors this week updating them on progress and seeking detail on their investments in Aorangi.
The Government last month placed Aorangi Securities, seven charitable trusts and both Hubbard and his wife Margaret Hubbard into statutory management. Richard Simpson, a partner at statutory manager Grant Thornton, said good progress was being made in understanding both Aorangi Securities and the business interests of the Hubbards.
“There is much for us to learn. Firstly, we must confirm the exact status of the 400 or more investors in Aorangi Securities while also learning more about the many business interests of Mr and Mrs Hubbard. We have had great co-operation both from Mr and Mrs Hubbard and all other parties we are dealing with,” Simpson said.
Many investors had phoned seeking information.
“We are responding to these calls with the upcoming letter that will provide an opportunity for investors to confirm their investment as at the date of the Statutory Managers’ appointment," Simpson added.
“We are also ensuring the needs of Mr and Mrs Hubbard are well taken care of."
The statutory management came after the Companies Office referred a number of matters relating to Aorangi Securities for investigation by the Serious Fraud Office for potential breaches of the Crimes Act. The investigation follows a complaint by an Aorangi investor who had not received a prospectus.
The Companies Office found that NZ$98 million in funds lent to Aorangi by 407 Otago and Canterbury investors had been lent on either directly or indirectly to trusts and interests associated with the Hubbards, contrary to instructions that they be lent as first mortgages secured by property. The SFO subsequently said an investigation into serious or complex fraud was necessary.
Interest.co.nz's Deep Freeze list of finance company failures shows over NZ$6.6 billion has been frozen in almost 200,000 accounts since the crisis began in 2006.