Blue Chip may be a 'moral vacuum' but not fraudulent, SFO says

Thursday 28th October 2010 1 Comment

The Serious Fraud Office has given up pursuing failed property investment group Blue Chip, saying the case fell short of its evidential threshold.

Director Adam Feeley said there is “insufficient evidence for a criminal prosecution.”

The white-collar investigator probed allegations Blue Chip misused purchasers’ deposit money, on-sold previously sold apartments, made unauthorised amendments of loan applications, used false representations to get advances or fees, made false representations to investors, and used false accounting to renovate found Mark Bryers’ home.

“Some may consider that Blue Chip operated in a moral vacuum with high pressures sales techniques and less-than-forthcoming disclosures regarding the nature of the property investments,” Feeley said. “There is insufficient evidence to implicate any particular individual with criminal conduct.”

The SFO will continue to look into the activities of a Blue Chip franchise in the South Island.

Bryers escaped a prison sentence earlier this year when he pleaded guilty to 34 charges relating to the company’s mismanagement and improper accounting, angering more than 2,000 investors owed some $84 million who saw his punishment of a $33,750 fine and 75 hours' community work as inadequate.

Businesswire.co.nz

Comments from our readers

On 29 October 2010 at 11:18 am Drowe said:

Insufficient evidence, eh? As long as you don't leave a trail, you're only guilty of improper accounting, punished by community work. Who says crime doesn't pay?