More Hubbard dealings exposed
The late Allan Hubbard's unusual and informal business dealings have been further exposed in the latest Aorangi Securities statutory manager's report.
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The late Allan Hubbard's unusual and informal business dealings have been further exposed in the latest Aorangi Securities statutory manager's report.
Grant Thornton announced today it is seeking High Court orders to establish that $60 million of assets are legally owned by Aorangi Securities, after they were pledged to the company by Mr Hubbard and his wife in early 2009 or early 2010.
"The successful outcome or otherwise of these proceedings will largely determine how much the investors of Aorangi ultimately recover," Grant Thornton's report says.
Hubbard investment vehicles Aorangi Securities and Hubbard Management Funds were put into statutory management in June 2010.
Grant Thornton's 10th statutory managers' report reveals the Hubbards introduced assets into Aorangi between April 2009 and March 2010.
"They did so in their personal capacities, as trustees of various trusts and as company shareholders and directors.
"Those assets were interests in farm-owning companies and partnerships and commercial entities, being shares and loans in those companies and partnerships and entities.
"There are some 34 separate entities involved with the assets having an estimated current value of approximately $60 million."
According to Grant Thornton, the Hubbards indicated their personal interests would rank behind the interests of Aorangi investors.
"The manner of the introduction of the assets by Mr and Mrs Hubbard into Aorangi was unconventional and the transfer of legal title in the assets to Aorangi was not completed in most cases."
If proceedings filed in the Timaru High Court are unsuccessful it will have a "serious adverse effect" on recovery for investors, Grant Thornton says in the report.
Earlier this week, HMF investors received their first payout, as Grant Thornton detailed financiers' pursuit of $2.1 million in HMF-owned shares which were allegedly used as loan security.
Grant Thornton warned last year that investors in Hubbard schemes faced years of legal gridlock and suspended payments.
David Williams
Wed, 04 Apr 2012
Wed, 04 Apr 2012
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More Hubbard dealings exposed
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