SFO launches probe into Mutual Finance

Thursday 30th December 2010

The Serious Fraud Office (SFO) is investigating Mutual Finance, which was a participant in the Crown Retail Deposit Guarantee scheme.

Brendan Gibson and Grant Graham of Korda Mentha were appointed as receivers of Mutual Finance on July 14.

Their first report was filed on September 14 and a six month report is due on March 11.

The SFO launched the investigation on December 23.

It did so after considering information from the receiver of the company and the Ministry of Economic Development's national enforcement unit.

Mutual Finance was incorporated in May 1997 and issued debt securities to the public.

According to Treasury's website $9 million was paid to 329 Mutual Finance investors by the Crown Retail Deposit Guarantee Scheme.

The company's managing director was Paul Bublitz, who had links with Viaduct Capital, which also collapsed.

The receivers' first report on Mutual Finance said there was unlikely to be any return to unsecured creditors and it was too early to estimate the level of recovery of assets. The company had loans of $8.2 million, properties in New Plymouth and Cable ay and a debtor ledger of $396,000 plus office equipment.

NZPA

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