Allied dobbed in Hanover to the regulators
Allied Farmers has had another crack at Hanover over the ill-fated deal between the two companies, saying it narked to the regulators that are now investigating Hanover.
Allied Farmers today confirmed that a short time after the purchase of the Hanover & United assets, it became concerned about certain conduct of Hanover prior to the acquisition, and immediately raised those concerns with appropriate regulators.
The Securities Commission confirmed on November 19 that it was investigating the conduct of Hanover, and today the Serious Fraud Office also confirmed it is conducting an investigation, with Allied Farmers named as one of the complainants.
Allied Farmers managing director Rob Alloway said, “We were quite shocked at some of the activity that took place prior to our acquisition of the assets and immediately moved to alert regulators.
“Our staff has spent a considerable amount of time providing relevant files and interviews to both the Securities Commission and the Serious Fraud Office over the course of the year”.
“We feel that the actions of the Hanover Board and management while under moratorium have had a significant impact on the value of the assets, and investors deserve to have this investigated”.
Mr Alloway also expressed surprise at a media release from Hanover last Friday, which said Hanover would pursue the payment of $5 million Allied Farmers refused to pay, alleging serious breaches by Hanover of the deal between the companies.
Allied alleges Hanover failed to comply with an obligation not to enter into abnormal transactions that would adversely affect the value of assets.
Mr Alloway said that these actions included the releases of personal guarantees and the sale of assets at less than market value.
“You really have to wonder why, after all that has happened, and in light of the Securities Commission and SFO enquiries, Hanover would want to reopen this issue.
“Personally, I am aghast that they would have the gall to effectively ask ex-Hanover and United debenture holders for another $5 million, given what we now know about the Hanover lending practices and assets.
“We also believe we have further substantial personal claims against former directors and officers of Hanover, including claims arising from breaches of duties, and we will pursue these”.
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Comments and questions42
Greg Muir must be extremely worried. Seems like a good guy who fell into bad company and was taken in by the glamorous lifestyles of the rich and infamous. He is paying a terrible price for his naivety.
When/if it all gets to court Hotchin and Watson will be out of the country and beyond the reach of the SFO. Imagine how long it would take to compel a reluctant Eric or Mark to come back to NZ to face the music. Can't see it happening short of getting Mossad to make the arrangements.
Watson wasn't even a director so they won't find his fingerprints at the scene and of course his reliance on advice from Chapman Tripp and PwC regarding the appropriateness of any transactions will be extensively documented. They won't find his signature anywhere - he got the directors to do all that - nor will he be mentioned in board minutes or anywhere else as advocating any particular course of action or decision. Of course he took the dividends: it was the board's decision ... he was relying on their judgement and expertise.
Wonder if any of this has dawned on Mr Henry yet - or are his apoplectic splutterings and raging at Allied genuine?
Good on Allied for dobbing them in. Sure Allied should have done better due diligence on the Hanover book but it doesn't mean that Hanover should be able to get away with downright fraud.
Hopefully soemone will dob in Strategic Finance and its directors so that they too are broought to account.
There must be plenty of agrieved parties who know enough to help this process.
Do it for NZ and get rid of the Strategic directors as well.
Note to SFO, focus on related party transactions any releases of personal/ corporate guarantees just prior to the transfer to Allied, the Kinloch transaction looks particularly smelly, and I am sure that they would have done some really dodgy things in the Axis property development activities. In particular Jacks Point. Take your time and make it stick! Anything to get Watson would be appreciated but a big challenge. Good luck.
I agree with Bud Fox
Make it stick please.
It will be another soppy Kiwi Rail Fay Richwhite ending.
Big fine with no admittence of guilt
Saw Hotchin and Finnigan in Surfers together a while back or was I just dreaming ????
A tad "pot, kettle, back" with Allied dobbing anyone in really.
the close related party loans / release of guarantors will be most interesting - from what the gospel column SPY says on a Sunday, i am sure it will become "sorry about me and ya misses mate" take a free ride away from your debts when we were mates. WINK WINK LOLOL
Good Luck!!
I, very much like other posters hope something "sticks" with this - but I really do fear that the word "slippery" will override all and every attempt.
A huge amount of financial and intellectual horsepower is about to be unleashed against any investigating body - these boys are always one step ahead - they will not roll over - too clever by far.
Sadly I don't wish for, but do fear, a disappointment here - shame!
It will all end up as a case of 'who's up who and who's paying'
Hopefully you are wrong Custard
Hopefully Adam Feeley is a man of steel and principles and will ensure that if the evidence is compeklling he will fight the Hanover guys to the bitter end and if necessary go to John key and ask for more money to match the firepower that Hanover defends itself with - John Key sells himself as a man of honesty and integrity and would support Mr Feeley 100%.
Slippery investors Mark and Eric may be, but others may also be caught, Greg Muir, Kerry Finnigan. Perhaps honour amongst thie ves will keep them from the SFO clutches, but then again one or other may throw the rest to the lions in an attempt to save their own skin.
I hope these guys are tied up in knots, their legal counsels will make a fortune and if that is one way we see some of their ill gotten gains removed then so beit.
Of course the brown stuff that sticks will make it harder for the Handover team to ever come back to NZ, and the country will be better for that.
What you're seeing from Adam Feely, is a bit of empty bravado; all for the benefit of the hapless investors.
Feely's on a hiding-to-nothing; he doesn't have the rapport that "CT" have with all the "Your Honours".
He's not schmoozing, over at The Northern Club; rubbing shoulders with the "right people".
Kerry Finnigan needs to be invstigated more strenuously too.
He worked for Hanover - left in 2005 for Strategic Finance and then from the time of Strategic Finances' moratorium has been working back for Hotchin - even while he was paid by Strategic.
Maybe there is more in that - ie Hanover and Strategic were actually colluding the whole way through. It is common knowledge that finance companies survived by swapping loans that were capitalised so that they could reduce arrears - by swapping they also booked profits.
Finnigan has been a busy boy looking after Hotchin lately. Hopefully he will be implicated and put away where he belongs.
Where does Strategic's infamous Consultant stand in all of this. He was the orchestra conductor all the way through and made all of the decisions - or at least made sure people made the decisions he wanted people to make.
The Consultant upset many people on the way and most of thsoe people will be lining up to target him if he is implicated in the Hanover investigation or when Strategic are investigated. The SFO only have to charge him and the aggrieved parties will provide more evidence than required.
Fitzy also known as "the consultant" is untouchable much like Watson, he was not a director of Strategic albeit probably ran things in behind. Many people have found out that its not much fun going against the consultant - this list probably includes our friends at the SFO. The SFO needs to focus on deliverables ie nailing crooks where they have absolute proof - I am feeling confident about their statement on Hanover - I would not feel confident about them up against the consultant the ultimate teflon man!
Think outside the square - these boys will have covered the obvious - remember they ultimately got Capone on tax evasion, they got Martha Stewart on obstruction and lying to investigators - again, the obvious will be covered.
In amongst all the shenanigans, there is a tiny but nevertheless significant oversight, an overlooked sigh-off, a simple technicality, whatever, it's there for the taking - think outside the square!
Don't be so sure on the Consultant
He isn't looking very sick for nothing - they will get him on something and there are enough aggrieved people to pot him.
He should pack his bag for a well earned holiday
Custard I hear you - and you are quite right - even the most devious can be caught out! maybe even the Consultant!
Perhaps there are a lot of very nervous pigs - push and prod each and everyone hard enough and maybe, just maybe, one will squeal.
The pig pen is a very tight and close-knit club and will be very hard to break - but when push comes to shove it's ultimately every pig for themselves.
This just may be a very tenuous deck of cards/pigs - worth a prod I think!
The Consultant has been seen sucking a few pots with Hotchie on the gold coast
Exactly.. think outside the square. A subpoenaed conversation with a certain Christchurch 'property punter' will reveal a lot.. 'the consultant'.. Strategic.. Hanover. Just do it !!
Watch out for the Consultant
He has squealed many times to save his own arse and set up his former workmates.
The law of averages says that his luck has run out and his old workmates will squeal on him to save theirs.
Life in Cremorne Rd may not be as happy as he wants.
Well it seems everyone commenting here is happy to see a great number of the high flyers of the last decade get their heads handed to them on a platter. A great deal of satisfaction will felt in many elderly investors home over the coming months.
They will not get their money back, but as one reflects on life it becomes clear that money is not everything. Friendship, health, freedom, and lack of uncertainty matter far more. Eric, Mark, Kerry, Greg, and who ever the "consultant" is will be watching over their backs, not knowng who is going to grass them up, which of their friends is going to become Pontious Pilot. What a great future they have to look forward to.....
few friends, the possibility of a holiday in a 40ft container care of HMPrison Service, the thought of lawyers eating away at their savings, the inability to use NZs free haealth service if they are trying to live outside NZ legal jurisdiction, wondering if someone with nothing to loose takes exception to a possible legal outcome where what E+M and Co did was morally bankrupt but not illegal.
Note to former Strategic Directors and management, - get in first before the Consultant cuts a deal and sends you all down the swanny.
Suddenly I'm something of a bit more of an optimist - reading between the lines from some posters here there may well be information out there that would be beneficial to this particular investigation - good stuff, outside the square lads!
Does the SFO run a confidential tip line - remember these boys don't play clean - this is money our parents worked hard for all their lives - it certainly didn't come easy I know - these boys smell dirty, they are dirty - investigate them, and let justice prevail!
Pretty poor journalism by NBR - Shame on you Niko - keep it factual.
References to 'dobbed in' and 'narked' puts a negative spin on Allieds actions which were the correct things to do. Try reworking your cheap headline and start with the second paragraph -
'Allied Farmers today confirmed that a short time after the purchase of the Hanover & United assets, it became concerned about certain conduct of Hanover prior to the acquisition, and immediately raised those concerns with appropriate regulators.' - that is much better journalism.
Keep it clean - theres nothing wrong with reporting irregularities to the appropriate authorities.
Keep it up and I'll will review my subscription to an already somewhat thin weekly.
Nelson, perhaps it should have read
"Allied Farmers today confirmed that a short time after the purchase of the Hanover & United assets, it became concerned about that it had bought a dog, not done due diligence correctly or thoroughly and in true Kiwi fashion went whining to the teacher regarding".
A bit of me thinks we New Zealanders are too complacent - that's what these boys play on - don't be complacent - be angry - deal to them - they have stolen from you - and they're smiling!!
They are slick, yes, they are smiling - they have robbed you blind - get angry - SFO get angry - rest assured, they have made a mistake, find it, exploit it, make them squeal!!
Outside the box people, outside the box - it's that easy, and that difficult!!
Thanks for the lesson Kate - comment was on the journalism not on the deal - I don't disagree with you but lets keep the journalism on the straight and narrow.
Now back to cooking daddy dinner Luv.
Wonder if tony gapes is worried ?
In response to 1st comment.That's why they got Muir involved to be a clean poster boy amongst the pack to give that sqeaky clean look. he would have feasted on big rewards just for turning up.
Nelson, cook your own f***ing eggs.
cactus Kate for a so called legendary blogger you have turned into a lame duck
You now seem to be vey tame on Hanover and Strategic - is it because you personally know some of them?
Roger Wallis will be rubbing his hands, with glee, knowing his cash register will be turbo-charged.
That clown that runs the ZB Breakfast Junior Request Session reckons the SFO are suffering from tall poopy syndrome.
Yes....but Hotchin was a director. Hotchin perosnally controlled the flow of information from amangmeent to the Board. Hotchin personally negotiated all the let's say "complex" deals with his mates. I think it is fair enough to say Watson seems more distant and therefore innocent than Hotchin.
Let's get the facts right
Watson took the profits and special dividends so he is just as guilty. He should also be bought to account - even if it is for lesser charges
Sorry but that doesn't make sense. Watson wasn't on the Board and didn't participate in management. Guilty of something he may be - time will tell - but he can't be as guilty as someone who was all over controlling the board and management of Hanover?
Finnigan has been working for Hotchin since August 08, same time as he was working for Strategic
Like Rats up a drain pipe ! you watch them run.
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