sign up log in
Want to go ad-free? Find out how, here.

Hubbard statutory manager moves to help investors with money frozen

Hubbard statutory manager moves to help investors with money frozen

The statutory manager of Allan Hubbard's Aorangi Securities has appointed a retired banker to consider hardship cases for investors with money frozen.

The statutory manager, accounting firm Grant Thornton, said Dick Brown would serve as an independent administrator. Grant Thornton's Trevor Thornton said in a letter to investors that those who need to cover urgent living expenses should contact Brown.

“He will assess their needs and make recommendations to the Statutory Managers," Thornton said. "If they live outside South Canterbury, a suitably qualified person in their area will be identified to make the assessment."

“We know that the placing of the funds into statutory management, and the subsequent 'freezing' of the investments, is stressful to many investors. We hope that the arrangements made will lessen that stress,” Thornton said.

"Those distressed investors who have urgent living expenses and have not yet contacted the Statutory Managers, should do so."

The government placed Aorangi Securities, seven charitable trusts and both Hubbard and his wife in statutory management in June.

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. This followed 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.

In its first report on the statutory management, out last month, Grant Thornton said Aorangi investors shouldn't expect any money back any time soon, and said it was concerned about a lack of paper work after discovering an "intricate and complex intermingling" of affairs.

The first report also revealed an additional NZ$70 million invested in Hubbard Management Funds (HMF) had been frozen and Grant Thornton was also concerned about inadequate records for these funds. The report also noted the uncertainty of security and priority of Aorangi investors could require court direction.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.


Precisely. It makes it seem as though said investors are rather little old ladies living a hand to mouth existence on the outskirts of Timaru..........


The CC investigators have already told us that  Hubbard was a) raising money without first releasing a prospectus and b) diverting investors money into investments different from those they had been led to believe they would be exposed to.

If at a bare minimum he is not held accountable for these breaches of the relevant legislation  then truly we will know that the NZ regulatory authorities are toothless and open to political manipulation.


well if you are cursed with a logical mind and no empathy you would take those elderly investors aside and spell it out!you have done your dough and nobody will be held accountable.very regrettable etc;etc;there was another related party transaction where the perp extracted 969dollars from a kiwibank branch with a BB gun and got three years plus.


well its nice to know that inky and edgars comments are bankable and they will put a personal guarantee on it.and no doubt your word as a pirate will be even more reassuring,what was that line from treasure island when long john silver said,them that dies will be the lucky ones!


'and his friends are using their own cash to provide support'


Given that the investigators have already said that money invested with Hubbard was being passed on to related parties and 'friends' at interest free rates I think its very magnanimous of these who benefitted from such largesse  to step in and help the original investors don't you?


Hello Mr Hickey, this is an old-fashioned comment.

Just listened to your interview on Radio Live Mon, 19 Jul 2010 10:45 with

Marcus Lush and thought what rubbish.

Here is a person not listening to what people are trying to say. 

Mr Hickey, you have missed the point. Have you worked with Ledger’s etc, the old fashioned way? A lot of New Zealander’s that have made money have done exactly that. Having been involved with old style, I wouldn’t expect somebody today to understand this system. Lending money comes about from a face to face chat. If you are clear in your mind their word is honest, a shake of the hand and you’ll lend the money. As you are already backed up by money, if there’s a problem, fix it. This does not sit well in society today.

Hear complaints about today’s financial rules and regulations that are ambiguous, contradictory and not understandable. There are some who still think the old style method is a money saver.

Re Hubbard’s- NZ Herald 17 Jul 2010

“Groceries came to $23, my wife only had $20, she took 3 items totalling $3 out of her supermarket basket and put them back on the shelf.

Mr Hubbard also questioned the role of the Serious Fraud Office in the investigation, saying it was unusual that the head of the SFO went to Timaru at the start of the case.

Did the SFO do this to Belgrave, Blue Chip, Bridgecorp, Commercial & Merchant Finance, Hanover, Nathans etc, etc - NO. Hear rumours in financial circles abounded. Did anybody do anything – APPEARS NOT. Look at the flash office’s, houses, car’s, boat’s etc - all bought with investor’s money. Where has it got us – nowhere.

Why lock the Hubbard’s out? Does Mr Thornton understand the old way’s? Many fear a lot of money is going to be lost due to not understanding Mr Hubbard’s system.

It was the way the SFO shut the door’s on the Hubbard’s.

We have to watch and read about people like Bryers, Hotchin, Petricevic, Watson etc. What did the SFO do too them?

Take a look at the economy. Lot of the failings are corruption and greed.

Who do you trust? The banks – look at their lending to the fly-by-nighter’s and no security.

Where are your investment’s safe? Many elderly engaged their lawyer’s, financial expert’s etc to check them out and were told “these are safe investment’s.”

Our family have been caught. All I can say due to ongoing investigations, that a financial advisor invested money for my 90+ father-in-law who had no understanding of the financial markets, in a number of companies now in receivership. They hid the cheque-books and bank statements from family. We also discovered he was taken to another lawyer and POA’s changed. Through court process, no revocation of POA’s. We are now waiting on a police complaint.

Through this procees have been informed [and come across], a lot of elderly abuse. From what we have been told, it’s quite rampant in NZ now. Many do not have the money for court action. All their savings are gone.

Do not blame the Hubbard supporter’s.

Mr Hubbard has not left the country, spent money on high living, built a flash house, got numerous flash vehicles in his garage, having flash birthday parties, got a flash yacht etc.

There may be a case to answer. But until I see evidence and the accounts + any wastage by SFO and Mr Thornton, I for one, will support my friends who have money invested with Mr Hubbard.  


It may be pertinent to remind those attempting to anoint Hubbard as a latter day financial saint that this individual was until relatively recently the much 'acclaimed' head of SCF. That would be the same SCF that has announced hundreds of millions of dollars of loan write-downs/losses in the past 3 years - and the same SCF which would have collapsed months ago had it not been given the protection of a government guarantee. The demise of SCF would no doubt have revealed a web of related party loans and other opaque practices which were apparently standard in the rest of the now extinct section of the NZ finance company industry.


Personally I am still of the opinion that SCF WILL eventually collapse, so we still have all of that to come. This would necessitate hundreds of millions of dollars being paid to investors, money ultimately derived from the taxes paid by ordinary New Zealanders who never had any desire or wish to invest in one of Mr Hubbard's enterprises. I doubt Mr Hubbard will be much of a hero to the those shouldering this particular burden.




Folks, this piece in the Herald from Jane Diplock on statutory management might be of interest -…