Statutory managers of Aorangi Securities Ltd and Hubbard Management Funds say they are following legal directions from the courts in refusing to pay the legal costs of Timaru financier Allan Hubbard, 83, and his wife, Jean.
Statutory managers of Aorangi Securities Ltd and Hubbard Management Funds say they are following legal directions from the courts in refusing to pay the legal costs of Timaru financier Allan Hubbard, 83, and his wife, Jean.
"There has been some confusion over the payment of Mr and Mrs Hubbard’s legal fees," the managers -- Richard Simpson, Trevor Thornton and Graeme McGlinn from Grant Thornton New Zealand -- said today in a statement.
"We approached the courts for guidance on whether it was appropriate for us to pay the legal costs, and if so, what money should be used.
"The courts came back saying that costs should be paid, but it was neither the liability of the statutory managers or the Government, and that it should come from Mr and Mrs Hubbard’s personal assets.
"We are following the court’s direction," they said.
In their seventh report to investors, the statutory managers said that they continued to finalise issues and stabilise the complex farming interests associated with the Hubbards and that they had restructured and significantly improved the financial reporting and governance of a number of associated farming interests.
Allan Hubbard's first court appearance on 50 fraud charges has been adjourned until August 26 for initial disclosure and witness statements.
Documents revealing details about the case were released today including information that he allegedly deceived investors into thinking they had seven-figure sums invested in his company Aorangi Securities, The Timaru Herald reported.
One of the charges says a statement showing an investment of $5,821,44 was given to an investor "when in fact no such investment existed".'
Another similar charge related to an investment of $1.45 million which the SFO also says did not exist.
His lawyer Mike Heron said an adjournment application had been made with the consent of the Serious Fraud Office (SFO).
Hubbard, his wife Jean, their companies Aorangi Securities and Hubbard Management Funds, and several charitable trusts were placed in statutory management by the Government on June 20 last year owing millions.
The charges related to theft by a person in a special relationship, false statement by a promoter and false accounting.
His lawyers have indicated the 83-year-old will fight the charges and any trial is expected to be up to a year away.
