Share Investor: South Canterbury Finance

Showing posts with label South Canterbury Finance. Show all posts

Wednesday, October 15, 2014

Hubbard to blame for collapse of South Canterbury Finance.

Thursday, December 8, 2011

Allan Hubbard Saga: The Dirty Half - Dozen

I will be watching with interest the fraud case unfolding in January as 5 individuals were charged yesterday with 21 counts of fraud over the collapse of South Canterbury Finance in 2010.

Their dodgy behavior led to the biggest ever loss in a fraud case in New Zealand and has cost the taxpayer $1.7 billion dollars.

Serious Fraud Office CEO Adam Feeley said the 21 charges allege a variety of offences, including theft by a person in a special relationship; obtaining by deception; false statements by the promoter of a company; and false accounting. The charges carried maximum penalties of between seven and 10 years in prison.

These charges come after 14 months of investigation into the late Allan Hubbard and his involvement in the fraud as the head of South Canterbury Finance and readers will know that he was involved heavily in the day to day running of the company so would have been aware of at least some of the charges made against South Canterbury and even if he wasn't aware the buck stopped with him as head of the company.

What is thus far clear is that there has been systematic fraud within SCF for a number of years but what isnt clear is what part the tight five charged played in that fraud.

It will be a tough court case followed closely by the media and the only hope from this individual is that theses charges attract near or at the maximum sentences if the 5 are found guilty.

Adam Feely indicated yesterday that Allan Hubbard was "a person of interest" in the fraud investigation but he was unable to lay charges against him because of his demise and his estate cannot be charged - charges would clearly have been made yesterday had Hubbard still been around to face them.

I wasn't certain that others would be implicated in these fraud charges and Hubbard watchers would then have little idea what sort of justice he would face had he been able to face charges but we will be able to see with some detail what part he may have played as evidence is given from the tight five.

And Allan makes 6 if you like.

Allan Hubbard Saga

Full SFO Statement on SCF Fraud Investigation

Hubbard Letter to Simon Power

Friday, October 22, 2010

Allan Hubbard Saga: Evidence of Fraud now Clear

The latest revelation made yesterday by South Canterbury Finance's receiver McGrathNicol included evidence of money provided to Allan Hubbard to invest in specific investments agreed to with the investors but then used for other more risky investing is clearly the most damning evidence yet that old Mr Hubbard was playing his shell games with others money in a very deliberate manner, rather than him being a victim of current financial circumstance, as his supporters still contend.

Even they have softened their support for him, perhaps now seeing the writing on the wall. In a statement desperately leaked to the mainstream media this Tuesday their supporters previous stance that Hubbard had done nothing wrong to now (he)"never intended to defraud anyone" and "or that he was completely responsible for the outcome"(s)

They are now saying in their statement that he might indeed have defrauded his customers and that he maybe partially responsible. That is a far cry from the complete innocence that they attributed to their pinup boy.

Of course, the revelation made public yesterday by SCF receivers clearly shows Hubbard intentionally pursued a fraudulent line when it came to investing SCF investors money.

McGrathNicol's evidence will be able to be used so that the SFO,the Securities Commission and the new Financial Markets Authority recently set up can prosecute in their specific roles as market regulators.

I am absolutely gobsmacked at the boldness and openness in which Mr Hubbard carried this out - it is clearly reminiscent of the Mark Hotchins , Bryers and Watsons of this world and they way they hoodwinked their clients.

I was skeptical about Hubbard being charged and found guilty of fraud a few weeks ago but this evidence clearly places the man in a position that will impossible for him to squirm out of.

They got him.

Related Share Investor Reading

Full SFO Statement on SCF Fraud Investigation
Download Grant Thornton Report 1
Download Grant Thornton Report 2
Download Grant Thornton Report 3

Allan Hubbard Saga: NBR VS the SFO
Allan Hubbard Saga: South Canterbury Finance to be investigated by the SFO
Allan Hubbard Saga: Third Grant Thornton Report
Allan Hubbard Saga: Will He Walk?
Allan Hubbard Saga: No Longer Bothered by Botherway
Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010
Allan Hubbard Saga: Supporters head to the exit door
Allan Hubbard Saga: Threats & the Mysterious PWC Report
Allan Hubbard Supporters: Conflict of Interest
VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report: Allan Hubbard's Aorangi Securities
Bothered by Simon Botherway

c Share Investor 2010

Wednesday, October 20, 2010

Allan Hubbard Saga: NBR VS the SFO

Good lord !

It just keeps getting worse for Allan Hubbard and his collapsed empire and the NBR is now being forced by the Serious Fraud Office to disclose documents and evidence over an investigation by one of their journos into the Hyatt Regency and Hubbards part in it. The NBR have until 9.00am this morning to disclose or the editor could face a $15,000 fine and the publisher a $40,000 slap or up to 12 months in the pokie.

If you were not aware of the shenanigans over the development of the Hyatt Regency and South Canterbury Finance part in it you might want to read the Matt Nippert NBR investigation into it published a few weeks back. Here is an excerpt just to put you in the picture:

"A South Canterbury Finance director muddied related-party links to the company’s single biggest debtor by making his freezing worker brother-in-law the sole owner of Auckland’s five star Hyatt Regency hotel.

South Canterbury loans to redevelop the hotel ballooned to $42.3m and government receivers are likely to book multi-million dollar losses when they finally sell it.

According to documents filed with the Companies Office 66-year-old retired Christchurch meatworker Peter Symes was a director and the 100% owner of the company controlling the Hyatt between February 2009 and August 2010.

The company had formerly been owned by South Canterbury or its parent company Southbury Group.

Mr Symes – who suffers bowel and lung cancer – told NBR he is the brother-in-law of former South Canterbury director Edward Sullivan.

He confirmed Mr Sullivan approached him to become a director and shareholder in numerous Hyatt-related companies in December 2008.

“My understanding is I was brought in because there were too many people from one company [South Canterbury] involved,” Mr Symes said.

Mr Symes said he acted on Mr Sullivan’s instructions."

Dodgy as a whole shop full of 2 bob watches huh?

The SFO clearly must have any incriminating evidence that the NBR has but any sources must be protected by anonymity if this was the rationale for them giving evidence to the NBR from the get go.

Without that anonymity we don't get people willing to dob in the criminals and yobs that try and rip us good folk off.

Tuesday, October 19, 2010

Allan Hubbard Saga: South Canterbury Finance to be investigated for Fraud

Well, finally the inevitable has come to pass. Allan Hubbard and his collapsed South Canterbury Finance company are to be investigated over possible fraud related to dubious inter related party lending and false statements made on financial documents.

"The Serious Fraud Office has launched an investigation into South Canterbury Finance. (see full SFO statement)

Chief Executive Adam Feeley said after inquiries by the SFO's new fraud detection unit, the SFO had grounds to suspect that a number of related party transactions involving SCF may have involved false statements or other fraudulent conduct." Stuff.co.nz

Those of you who read this blog will know that this has been coming for months but supporters still see that Hubbard has done nothing wrong.

Three Grant Thornton Reports 1 2 3 on related collapsed businesses and documents released last week have revealed so much inter-party stuff it makes Mr Hubbards empire look like a rather large Utah based extended family, with all the back biting, chest rubbing and back slapping that goes along with such a closed group.

We will see a closer investigation, more evidence and hopefully a jail conviction for Hubbard and his fellow travellers.

It has so far cost the New Zealand taxpayer the thick end of 2 billion (if you include interest, administration and lost opportunity cost) and will cost more as the Serious Fraud Office begins their investigation.

We ca only hope that this time the SFO has got their Is dotted and their ts crossed because this big smelly fish cannot be let go like all the other toe rags have.

See more @ NZ Herald

Thursday, September 23, 2010

Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010 (UPDATED)

Source: TV3

In a 60 minutes interview with Allan Hubbard last night Hubbard claims an anonymous unsigned letter was the only reason Hubbard Management Funds and Aorangi Securities were put into statutory management and that he put $40 million of his own money into the latter to keep it afloat.

These two claims I now know are falsehoods and there will be more about that from this blog around these and other falsehoods, over the next week or so. There have been other complaints and any assets Hubbard says he put into either of these two entities were worthless and or wrapped up in inter party lending complications.

I feel sorry for the investors in those companies but like Allan they are blaming everyone else but the man responsible, Mr Hubbard.

Hubbard blames everybody else as well and specifically his fellow directors for not letting him invest in the stockmarket. He claims they wanted to invest in the property deals that ultimately led to the collapse of his empire.

The 60 minutes piece was filmed in Timaru during last weekends hubbardfest led by Paul Carruthers, formerly of the Standby Hubbard Support group.

A soft interview, without thorough investigation, designed to make Allan Hubbard look good.

Poor journalism.

Wednesday, September 8, 2010

VIDEO: Ministerial Statement on SCF Failure - Bill English, Sept 8 2010

Bill English today explaining in parliament why South Canterbury Finance failed and the Governments response to it in the past, the bailout of investors and the cost to taxpayers of Allan Hubbards failure and fraudulent behaviour.

See below for other party leaders responses and part 8 for Bill English' counter.

Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF R...s
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
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

Recommended Fishpond Reading

Crisis: One Central Bank Governor and the Global Financial Collapse

Buy The Intelligent Investor & more @ Fishpond.co.nz

c Share Investor 2010

Tuesday, August 31, 2010

Allan Hubbard Statement on SCF Receivership

The following is a statement from Allan Hubbard on the receivership of South Canterbury Finance and comments on other parts of his former empire.

In it he take no blame for the collapse and in fact blames the Government for moving to place his other business into statutory management for his business problems.

He has lost most of his assets but so have have others who invested with him, number one being the hard pressed taxpayer who has just forked out $1.6 billion to bail SCF out.

I will give him kudos for fronting up but to deny his substantial part in this whole fiasco is simply ignoring the reality of the situation.

Like other finance company heads to have been dealing cards from their sleeves, Allan Hubbard should go to prison.

Allan Hubbard's Statement

Following today’s announcement that South Canterbury Finance (SCF) is to be placed in
receivership, majority shareholder in the company, Allan Hubbard, said he is firmly of the
view that if he had not been removed from the board of the company, and subsequently
placed in statutory management, he could have helped to save the business.

“It has been deeply frustrating and hurtful, over the last nine months, to have been sidelined
by my fellow SCF directors, and subsequently straight-jacketed by the Government
regulators, from working to save South Canterbury,” he said.

“Since the impact of the global credit crisis became obvious, I have done everything I can to
save SCF, including investing hundreds of millions of my own investments into the company.
“I have always attempted to place investors’ returns first, and my personal financial interests
as secondary, and as the severity of the global credit crunch became apparent, I moved
quickly to inject my own assets into South Canterbury,” he said.

“For me it has always been a matter of trust and personal integrity to investors. In a crisis like
that, you do what you have to do to save the business.”

He said that in this day and age that might sound old fashioned and that he has resolved to
fight back to protect his and his wife’s reputation.

He went on to say that when they were personally placed in statutory management on June 20
this year, that was a serious blow to them, South Canterbury Finance and “unbelievably short
sighted” on the part of the Government which acted on the advice of the Registrar of
Companies.

“Surely they realised that by freezing me out and taking over control of my affairs that they
would be dealing a body blow to South Canterbury Finance?”

Big day for the regulators and a sad day for investors

“It was a big day for the regulators and a sad day for investors,” he said.

“Instead they bring down the boom, take me out, freeze my access to my personal funds and
now so many families, small businesses, farms and enterprises, throughout the South Island
in particular, are going to be seriously suffering,” he said.

“It was an unnecessary, knee jerk bureaucratic response and it required a strategic solution
not a sledge hammer.”

Mr Hubbard said that his action was deeply hurtful and it was painful to be forced to watch
events, announced today, unfold from the sideline.

“I have spent my life supporting businesses, investors and charities and my track record
speaks for itself,” he said. “I have been prudent and diligent, to the very best of my ability,
and have always been deeply respectful of the trust placed in me.”

Mr Hubbard said that while he acknowledges that some may consider his management
systems old fashioned he has never defrauded a single investor of a single cent.

He said that when he was ambushed last week by the statutory managers, with their second
investors’ report, and with no advance warning or the courtesy of a copy of their report, he
resolved to have more to say.

He said today’s announcement on South Canterbury’s fate had hardened his resolve.
“I will be providing my own analysis, with the assistance of my team of professional legal
and financial advisors, to put my side of the story and I will be taking this matter further,” he
said.

“I cannot allow my reputation to be savagely attacked by this shameful process and all of
those who trusted Jean and me, over so many years, to allow this tragic set of events to go
unanswered,” he said. “Those who care about us know I am unwell and that hardens my
resolve.”

Mr Hubbard said he would not be commenting further until he and his advisors had prepared
their case against the statutory manager’s report and their response to today’s announcement
regarding SCF.

Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
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

Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

c Share Investor 2010

VIDEO: Sandy Maier - full news conference on SCF Receivership

South Canterbury Finance head Sandy Maier discusses the fallout of the collapse of the company on 31 August 2010. Full Press Conference.

CEO Sandy Maier stated that unwise property ventures in Auckland, Queenstown and Fiji led to SCF downfall.

“South Canterbury's failure is as a result of its own actions and activities and poor choices historically... we could not overcome all that baggage. The ultimate cause of this is South Canterbury's problem, a management, governance and misdirection problem.

As fast as the trustee and the Crown can get the money out I'd say to the retail establishment and the investment establishments there's a wave of people coming at you.”

Allan Hubbard meanwhile has blamed others for the collapse.

Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

VIDEO: Ministerial Statement on SCF Failure - Bill English, Sept 8 2010
Allan Hubbard Statement on SCF Receivership
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
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

Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

c Share Investor 2010

Market Alert: South Canterbury Finance to be placed in Receivership

South Canterbury Finance is about to be put into receivership and shares in the company have been suspended.

From the NZX

South Canterbury Finance Ltd - Request to Appoint Receiver

NZX Announcement

South Canterbury Finance Limited announced today that it has been unable to complete a recapitalisation and restructure. As a result, the Company would have been unable to certify to Trustees Executors Limited, in accordance with the terms of its debenture trust deed with Trustees Executors Limited, that it was compliant with various financial covenants under the debenture trust deed for the financial year ended 30 June 2010.

Accordingly, South Canterbury Finance Limited has requested Trustees Executors Limited to appoint a receiver in respect of the whole of its undertaking and assets, and Trustees Executors Limited has done so. A further announcement will be made by the Company in due course.

c Share Investor 2010

Share Investor

Wednesday, October 15, 2014

Hubbard to blame for collapse of South Canterbury Finance.

Thursday, December 8, 2011

Allan Hubbard Saga: The Dirty Half - Dozen

Friday, October 22, 2010

Allan Hubbard Saga: Evidence of Fraud now Clear

Wednesday, October 20, 2010

Allan Hubbard Saga: NBR VS the SFO

Tuesday, October 19, 2010

Allan Hubbard Saga: South Canterbury Finance to be investigated for Fraud

Thursday, September 23, 2010

Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010 (UPDATED)

Wednesday, September 8, 2010

VIDEO: Ministerial Statement on SCF Failure - Bill English, Sept 8 2010

Tuesday, August 31, 2010

Allan Hubbard Statement on SCF Receivership

VIDEO: Sandy Maier - full news conference on SCF Receivership

Market Alert: South Canterbury Finance to be placed in Receivership

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