In the ongoing saga of Allan Hubbard and his crumbling business empire there were further revelations yesterday when the second report from statutory managers Grant Thornton came out.
It appears that Mr Hubbard has been running his Hubbard Management Funds (HMF) business, Aorangi Securities and a number of other investment vehicles in a slack, fraudulent and underhanded manner. In those respects it makes him as bad as your Hotchins, Watsons, Bryers and their filthy thieving ilk.
On first look though, what appears different is that Hubbard looks to have been motivated by the "Robin Hood" factor. That is, he was using other peoples money to lend to those who "needed" it.
All very altruistic sounding at first glance but bound to end in tears when incoming funds and assets didn't match outgoings.
There have been claims made in the second report that Aorangi Securities has been borrowing money on call while lending the proceeds to second rate and overvalued farming assets, the bulk of which are connected to the Hubbards - nothing altruistic going on there.
Aorangi made interest free loans to a charitable trust that the Hubbards have a financial investment in and that trust was being charged 10% interest on those loans - very dodgy.
Investment values overstated by 25% in the Hubbard Management Funds business with $13 million of assets allocated to investors in the fund that apparently don't exist - looking very bad here.
An overstatement of cash at hand at HMF of more than $5.5 million.
Inter-party lending that advantages Mr Hubbard and his financial interests over his investors is a good indication that he was covering his own ass in the event of a meltdown.
Mr Hubbard's businesses all suffered from a lack of full detailed documentation.
It is clear now while Mr Hubbard did not set out to deliberately fleece investors as other finance company heads have over the last 3 years, Mr Hubbard is no saint.
I have until now largely reserved my judgement on Hubbard and his predicament but if you read the report you can come only to the conclusion that Hubbard has been a naughty boy and supporters need to take a good hard look at themselves if they wish to continue to back Mr Hubbard in the face of the reality of his offenses thus far revealed.
Yep, it isn't right that the other thieves out there have largely been untouched by authorities but the object of our interest here is Allan Hubbard and we now should wait for the additional detail that will come out from the Serious Fraud Office and the Statutory managers of Hubbard's business and personal financial dealings.
Related Share Investor Reading
Download Grant Thornton Report 1
Download Grant Thornton Report 2
Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report: Allan Hubbard's Aorangi Securities
Whatever happened to? Muriel Dunn
Bothered by Simon Botherway
Allied Farmers: Prosecutions should be on the cards
Allied Farmers Fraud passes with little fanfare
Allied Farmers: What's it Worth?
Hanover, Allied Farmers deal more of the same
Jane Diplock Q & A Interview
Hanover's "White Knights" are really daylight robbers
Hanover collapse: It was just a matter of time
Money Managers Saga: 3 Story wrap
Money Managers gives First Step investors the middle finger
Greed is bad: Geneva Finance Folds
Financial 101: Learn before you leap
Kevin's Blog
Discuss this topic @ Share Investor Forum - Register free
From Fishpond.co.nz
Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz
c Share Investor 2010
-
Darren Rickard - you are an idiot.
ReplyDeleteYour comments about Allan Hubbard are libelous and defamatory, and you have set yourself up as judge in a media trial being carefully conducted by the government - where the evidence is only being contribut...ed by one side so far.
There is no way in a million years Grant Thornton's reporting would stand up in a court of law. They are nothing short of snapshots taken at certain points in the business cycle, and do not represent the complete picture.
Where are the balance sheets to support their statements? Did you ask for them? Will they give them to you? We think not.
Would a judge rule on this matter based on their report, with no supporting evidence?
No.
And you know it.
The truth obviously doesn't matter to you though - unless it comes gift wrapped in the form of your hastily formed opinion, which I note offers no other way of viewing this than what the government has carefully constructed.
How about waiting for the Price Waterhouse report next week which says something completely different to the government.
I know it's tempting to shoot from the hip when all you want is attention - but in this instance - it portrays you as nothing more than someone in love with the sound of their own voice.
Having placed the Hubbard's on trial by media for 68 days, with no evidence, with the clear agenda of running them into the ground and forcing them to give up their assets, clearly it has not occurred to you that it is in the government's best interests to produce a document that portrays them in the worst possible light. How else could they justify such an infringement of civil rights, let alone their other questionable actions?
Your cynical approach to Hubbard's supporters says far more about you than it does about them.
Get with the program.
Paul, my decision is not a hasty one. I have followed this closely and have been willing to give Allan the benefit of the doubt. In the face of the facts - the Thornton people clearly either have the detail or have to work their way to it - you cannot come to any other conclusion that Hubbard has been screwing the scrum.
ReplyDeleteInventing assets Paul, what would you call that?
I would call that fraud.
I support Hubbard and have done from the start. He seems like a genuine bloke.
ReplyDeleteI'm with you Darren. Paul has his head somewhere where it is stopping oxygen from getting to it.
ReplyDeleteIn the face of this report Hubbard should be doing time.
Hubbard is as crooked as a 3 dollar bill.
ReplyDeleteMy sympathy is with those that lost money not him.
I cant get over how Hubbard made up investments to make his HMF fund look better than it was.
ReplyDeleteAlmost as bad as Hanover, Blue Chip etc...
I am amazed at the blind loyalty to a man who has been fiddling the books and helping himself along the way.
ReplyDeleteThanks for your support on my stance. It is important we put on the pressure on Hubbard to show we support the investors who have lost money.
ReplyDeleteSupport for Hubbard is now sadly misplaced.
Darren
ReplyDeleteYou may care to read this post http://bit.ly/aXEajT, which looks at various issues surrounding the Hubbard affair. At the very least governance was poor and paperwork lax.
The post referenced is one of several on this unfortunate affair
Thanks Pete, will have a look and comment latter.
ReplyDeleteJane Diplock was right after all.
ReplyDelete