Court Report: Who’s going to pick up the $170,000 tab?
Hamish McNicol on an alleged ponzi scheme's continued lack of clarity. With special feature audio.
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Prosper Through Trading (PTT), as well as several associated entities, were put into receivership last year amid allegations the man behind it was running a ponzi scheme.
Fair enough, you would think, but as the Financial Markets Authority continues to investigate the company of “real concerns,” who pays the costs of receiver PwC’s work has been at issue.
The FMA, who says the receivership and asset preservation orders obtained on the entities was “absolutely necessary,” wants the $170,000 cost met from the assets of the company.
Investigations have uncovered deposits of $10 million, less than $2 million paid out, and only $51,000 left.
PTT director Steven Robertson, however, argues such a cost burden could affect any aggrieved creditor claims, and even worse, he could be an aggrieved part if he is ultimately absolved of any wrongdoing.
Justice Matthew Palmer’s decision on the issue was released this week, in which he says it is too early for the FMA to make such an application.
The FMA may apply for the order again “once there is greater clarity about the costs.”
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Thu, 12 May 2016
Thu, 12 May 2016
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Court Report: Who’s going to pick up the $170,000 tab?
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