I just have to comment on a new website set up by Mark Hotchin to defend the indefensible, that is, the justification in his mind to investors and the public that losing half a billion of investors money under his control was not his fault but the fault of the "financial crises" in 2008 and others who may or may not have been directors of Hanover Finance at the time of its collapse.Here is Mark justifying his position on Hanover in relation to Allied Finance.
"I am very sorry for the loss investors have experienced. No one could have anticipated the global financial crisis and the severe consequences to the NZ commercial property development market. As directors of the company we always sought to act prudently for investors. We also believed the decision to transfer the assets of Hanover/United under the Allied Farmers Proposal was the best option available for investors at the time". www.markhochin.co.nz
It would make most weep with rage rather than sympathy and his website content basically focuses on blame shifting, justification and finger pointing - at everyone else but himself that is.
Let me be clear. While nothing illegal has been found in his day to day running of the company, as yet, what is clear is that the collapse of Hanover had little to do with the financial crises but more to do with the highly risky investments made by Mark Hotchin and Eric Watson, the vast amount of murky inter party lending the company participated in and massive amounts of dividends Hotchin and Watson removed from the company.
They basically bled the company dry of cash.
Where did the money go?
Have a look at the edifice at Paratai Drive and you might start to imagine where the rest of the Hanover investor money might have gone, some of it even went towards a $36 million super yacht!
I am betting not many people who lost money with this turkey have signed up to compliment the fella.
Related Share Investor Reading
Hanover Finance: Hotchin Ponzi Scheme Suppression
Mark Hotchin Comes Out Swinging
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
Think Bigger: How to Raise Your Expectations and Achieve Everything by Michael Hill
c Share Investor 2011
