By Nicholas Bryant
Friday 11th August 2000 |
Text too small? |
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.
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director