Herbert receiverships wind up with $595k shortfall to secured creditor ASB

Notice was given yesterday of the end of the two-year receivership of the insurance broker and associated premium funding business.

The receiverships of Herbert Insurance Group and Herbert Securities, whose director Grant Herbert is up on fraud charges, have been wound up with a $595,000 shortfall to secured creditor ASB Bank.

Michael Stiassny and Grant Gibson of KordaMentha yesterday gave notice of the end of the two-year receivership of the insurance broker and associated premium funding business.

HIG was put into liquidation and receivership in March 2011 with a shortfall of about $3.1 million owed to insurers. Acting on complaints of a shortfall in HIG's insurance broking client account, the Serious Fraud Office began an investigation that same month on the basis that serious or complex fraud had been committed.

Mr Herbert first appeared in the Auckland District Court in May last year on 28 fraud charges and the latest callover, scheduled for this week, was postponed until April 10. Fellow accused Christopher Green, a former senior manager at Bunnings, pleaded guilty last month to receiving kickbacks from Herbert Insurance.

The receivers say ASB has received a net $270,000. As a result of the shortfall, no funds are available to lower-ranking creditors.

Mr Herbert and former Dragon's Den star Paul Webb are listed on the Companies Office as Herbert Insurance shareholders.

In a related case, QBE Insurance (International), a unit of Australia's biggest insurer, this week settled with former executive Craig Anderson over a $1.5 million liability the firm feared would arise from underwriting business to the failed Herbert Insurance.

(BusinessDesk)

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