The Serious Fraud Office has widened its investigation into Allan Hubbard's Aorangi Securities to include Hubbard Management Funds, a company uncovered by statutory managers last month.SFO director Adam Feeley said the agency is continuing its investigati
The Serious Fraud Office has widened its investigation into Allan Hubbard’s Aorangi Securities to include Hubbard Management Funds, a company uncovered by statutory managers last month.
SFO director Adam Feeley said the agency is continuing its investigation after consideration of a preliminary report on Aorangi.
Mr Feeley said that the recent reports by the statutory managers had highlighted the range of issues which were emerging the inquiries into Aorangi and Hubbard Management Funds (HMF).
He said while the initial inquiries and preliminary report had significantly progressed the investigation, there were still several interviews along with considerable financial analysis to be undertaken before a further report would be completed for consideration.
“This is a major investigation into a very complex range of issues. It would be foolish to think that some investor interviews and a cursory examination of the documentation would do justice to the issues that have been raised.”
Mr Feeley added that there were issues in relation HMF that required consideration.
“It has become apparent that there is considerable overlap between ASL and the investments in HMF. Our further inquiries will be considering both these and related entities.”
The government placed Mr Hubbard and his wife under statutory management on June 20, along with seven charitable trusts, Aorangi Securities, and later, HMF and another unnamed trust.
Supporters of Mr Hubbard wrote to the Prime Minister at the weekend, saying the government's approach was divisive and unfair.
Meanwhile, the clock is ticking for Mr Hubbard's South Canterbury Finance, the Timaru-based finance company which owes 30,000 investors about $1.7 billion, of which about $1.5 billion is covered by the retail deposit guarantee scheme.
South Canterbury needs a sizable cash injection or faces receivership this week.
In an announcement to the stock exchange this morning, South Canterbury said it was still in discussions with interested parties "in an endeavour to put together a recapitalisation and restructuring solution acceptable to all stakeholders."
However, the company said "there can be no certainty" recapitalisation and restructuring proposals it has been pursuing will be successfully implemented.
