Phantom deals haunt adviser

By Nicholas Bryant

Friday 11th August 2000

Financial planners Reeves Moses took money from investors for contributory mortgages for which there were no developments.

The "phantom" developments contributed to the mess which saw the ASB Bank shell out almost $24 million to cover a book of mortgages from about 1000 investors.

The mortgages were funded by small investors, supposedly for bona fide property developments, but in some cases the ground has never even been broken.

"Any prudent lender would be aghast at what's been found," a source close to the company said.

Reeves Moses was sold in 1998 to Sovereign and then passed to ASB Bank when it took over Sovereign. ASB took over the mortgage book and onsold the company to Harts Australasia.

The original shareholders in Reeves Moses were Roger Moses and Gary Stevens.

Both men are life members and have held official posts on the Association of Investment Advisers and Financial Planners.

Mr Moses, who with Mr Stevens now runs a funds-management consulting business, said in the circumstances he felt it inappropriate to comment.

Reeves Moses' auditor at the time of the sale to Sovereign was Auckland accounting firm MGI Wilson Elliot.

MGI Wilson Elliot partner Peter Wilson was unavailable for comment.

Harts Australasia head Steve Hart is looking at taking court action and the Securities Commission is investigating the company.

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