Harman bankrupted as liquidators strike problems
Edward Harman, the man behind a string of failed investments involving a coterie of well-known business people, has been bankrupted as concerns emerge over the liquidation of his companies.
Mr Harman was declared bankrupt last week in the High Court at Auckland, as the result of a creditor’s petition.
He is the director of five companies placed into voluntary liquidation last July: Fairthorne Investments, Fairthorne Trading, Fairthorne Ventures, Paeroa Investments and Wake Investments.
The company’s creditors included Auckland restaurant Mikano and Craig Greenwood’s Clearmont Financial Services.
Other wealthy co-investors include Allan Hubbard, who has a stake in employer advice firm Cosignia alongside Fairthorne Investments.
Liquidators Grant Graham and Brendon Gibson of KordaMentha say their task has been hampered by the lack of complete accounts for Mr Harman’s companies, some of which have been running since the early 1990s.
He has not filed complete accounts for the companies since 2005.
The liquidators are investigating whether they can take legal action against Mr Harman for potential breaches of the Companies Act.
They have also struggled to cash up some of the company assets, which include shares and loans in local and overseas companies.
So far just $13,000 has been cashed in from Fairthorne Investments (adding to nearly $32,000 cash on hand) and $3000 has been realised at Fairthorne Trading.
The five companies together owe nearly $50 million in loans, according to unverified accounts provided to the liquidators.
This figure doesn’t include bank loans. ANZ National lent to some of the companies involved.
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Comments
this guy flew under the radar
$50m lost yet no-one seems to know who he is. I guess we will be reading more about this guy in due course.
he blew his Grandmas inhertance
Imagine being 27 and getting $13 MIL from a death of a English grandma, then losing it all at 46...
NOTE: Mummy and daddy are loaded, so he will keep his range rover
Rats on a sinking ship
Mummy and Daddy were also directors of the family owned business. At least they were until shortly before the liquidation.
boooooo
he owes us just under $4000 - I know that doesn't seem like much BUT for a small business it is a lot... and he still has a very flash holiday home in Russell - Bay of Islands
Good Mates
Ed Harman swindles 30 million plus off all his good mates over a year ago and know one has thrown the book at him! Great salesman!!
Under Investigation
I understand he and his fellow family directors are under investigation. $30m in losses is conservative and the family still has multi million dollar homes in Auckland, Russell and Queensland and the kids still go to private schools, not bad going for a bankrupt.
LOL
Who needs enemies when you have a good mate like Ed Harman.
RCN & Associates
Can anyone tell me whether this is the same person that runs RCN & Associates?
Yes the same Ed Harman
Yes it is the same person and I would recommend having nothing to do with unless you want to lose a lot of money.
I am sure he doesn't own RCN but I would not trust him for a second.
So much for a personal guarantee
I got conned by Ed Harmen - the man should be in prison,
I was transferring money to Australia with him and next I receive in the mail a note saying I will hold your money for a month,but don't worry, enclosed is a personal guarantee over my property. I phoned him to say NO, I don't want you to do that, but he would not answer his phone. I emailed him and he didn't respond. I turned up at his office to be told he was overseas. This cat and mouse game went on for 6 months. I'm a idiot I should have rung the police straight away.
Fat lot of good a so called personal family guarantee did. Absolutly NOTHING...I lost nearly 200k, didn't move to australia as my money didn't arrive into my account. I never intended to invest with this man - he stole my money. A year down the track and no pay back, its a disgrace. I am not rich like the Harman family, I have worked all my life to save this money its about time someone from the family paid me back. I am not an investsor, I was transferring funds from NZ to Australia (or so I thought) I should call the police!!!
Can't blame his family
How can you possibly blame his family? Ed Harman is the criminal not his family. I am sure they have suffered, both financially and from the stigma attached to what has happened.
They have to face their friends every day knowing many of them were ripped off by their son who will more than likely end up in jail. No a good look for people who mix in such circles.
The family have already made good to those that loaned money on good faith to them and it is only those that were stupid enough to invest in Ed Harmans various businesses that are still out of pocket.
read it again
I didn't invest, and I understand the family was paid back before the liquidator stepped in. You should know the saying... blood is thicker than water...
nonsense
The family have lost more than anyone else and are the single largest creditor. If it was not their son that caused this they would be filing fraud charges against Ed. Ed's brother is a respected surgeon and he has lost $$$$millions and faces possible charges because he was a director of the failed company.
The family will repay people that loaned money to their company but not those that invested in Ed's personal endeavours. The Harman family are very respectable and they will honour legitimate debts.
Ed Harman and The ANZ National!
Did I read the article correctly. ANZ National is owed money as well! How did the ANZ National assess its credit risk! Who is getting there hand slapped at ANZ National. ANZ National has a reputation as a very conservative lender! Yeah right.