Saturday, September 18, 2010

Allan Hubbard Supporters: Conflict of Interest

If I have a possible conflict of interest when writing on the subject of investing I always declare my financial interest, if any.

You have to be upfront and direct with people otherwise they wont take you seriously if they subsequently find out you write with a fork typewriter - ask David Garrett.

With Allan Hubbard and his collapsed Aorangi Securities and Hubbard Management Funds, which are now under statutory management, his key supporters need to show their hand lest they be tarred with a conflict of interest.

The leaders of the Hubbard support group, Paul Carruthers, Michelle Helliwell, Keiran Trass and other reasonably prominent people who I am aware of but wont name because they haven't yet publicly come out, need to declare what financial or personal interest they had and still have in either of Hubbard's failed companies or the man himself and therefore what they might stand to gain by grandstanding on Facebook, television and every other media outlet they fevourishly send press releases to in the hope of getting a scrap of publicity.

I mean, why else would you attack other individuals or groups who had nothing material to do with the collapse of Hubbard's empire unless you had the possibility of a financial gain sometime in the future?

I don't think they are narcissistic attention seekers, although at times they unintentionally cross that line.

Those of us who are not rabid Hubbard supporters would be entitled to think that you had more skin in the game than just losing a personal investment in either of the two Hubbard companies under Statutory Management because of possible fraud, insider lending irregularities, fabricated investments and inadequate and misleading paperwork.

If it was just money lost in Hubbard Management Funds and Aorangi Securities wouldn't you want to go after the individual or company responsible? That is, Allan Hubbard and his directors, instead of trying to scapegoat the responsibility to the Statutory Managers, the Government, Simon Botherway, Bill English, John Key and a conspiracy put forward by Mr Carruthers that the statutory management process was a ruse by the National Party to set up a private bank in the South Island for some of their mates down there - Mr Carruthers does have an active imagination, Ill give him that.

There is a disconnect then when it comes to those leaders of the Hubbard support group who have publicly put themselves forward. A disconnect between who is responsible for losing money in the aforementioned Hubbard investment failures - the individuals who invested or those that were advised by so-called experts and Allan Hubbard are clearly to blame - and those who run the Hubbard support groups who want to shift the blame to others and not Allan Hubbard and ultimately the investors themselves.

We have seen countless other finance companies of Hubbard's ilk go under because of dodgy dealings but outspoken investors have always pointed the finger largely at where the blame lay. At their advisers feet, with the company or individuals in the company itself or indeed themselves for being ignorant or too greedy in a small number of cases. They have never involved parties that have had nothing to do with the collapse of the respective finance company.

What have the leaders of the Hubbard support group got to gain from pointing the finger at the wrong people?

I would suggest you follow the money. Where you find the most moola to gain or lose or a back to re-slap you will find the most vocal trying to duck their responsibility.

It is called risk guys, take a look in the mirror and spell it out slowly.

Sometimes you win, sometimes you lose.

At least be upfront though for the reason for your support and declare any interests.

It is the honest thing to do.

* Just a wee footnote:

Just over 200 devotees of Allan Hubbard turned out today in Timaru in the vain hope that statutory managers, Grant Thornton would be forced to overturn a statutory management that is legally unchallengeable.

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  1. Its Trass, not Trask

  2. Thanks for pointing that out. I got his name from the piece on stuff on the meeting in Timaru. It spelt his name as Trask.

  3. Some support for your views here on PropertyTalk this afternoon.

  4. Oh, cheers anon, seems like a hot topic everywhere.


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