Sharechat Logo

SFO launches probe into North Shore property development

Monday 14th October 2013

Text too small?

The Serious Fraud Office has launched an investigation into a North Shore property development which has left foreign investors out of pocket after the companies went broke and the land sold to new developers.

The companies include developer Chris Cook's Albany Heights Villas Ltd and Hunter Gills Road Ltd, which are both in liquidation. The SFO is looking into allegations that investor funds weren't held in trust, and that the developers made misleading statements.

Acting chief executive Simon McArley said a number of the investors are foreigners, and that the terms of the agreements differ between investors.

"The legal structures of the investments offered are extremely complex. Our first task has been to get to the bottom of the legal implications of those agreements," McArley said in a statement. "Whether there is potential for criminal offending to be an issue will depend largely on the outcome of that analysis."

As Aug. 4, the liquidators for Albany Heights Villas had received 39 unsecured creditor claims totalling $16.9 million, according to their latest report, while Hunter Gills Road owed secured creditors $649,000 and unsecured creditors $1.9 million as at Sept. 26.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports