How is this still happening?

[Damap]

Just goes to show no amount of regulation can eradicate blind, stupid and dishonest.

"Dozens of potential homeowners have been left in the lurch with half-built homes after a bankrupt salesman taught by the fraudster featured in the Wolf of Wall Street convinced them to invest tens of thousands of dollars with his family's teetering company."

Story at http://www.nzherald.co.nz/nz/news/ar...ref=NZH_FBpage

[jimO]

it happens because people thing that group housing companys give good value, bit are infact terrible for falling over holding the clients and subcontractors money, i see this prick blaming subbies for spiraling costs but i bet they stopped working for him until other outstanding jobs were paid for

[chrisgoh]

Just goes to show no amount of regulation can eradicate blind, stupid and dishonest.

Agree. Similarly no amount of security system can stop someone from hacking or stealing.

In this case, I would rather pay more for established developer with good and long track records. You pay what you get.

[Damap]

I would only trust my money with one builder. Otherwise I just wouldn't do it. One we did a few years ago we paid progress payments to our attorney and they were released when the valuer confirmed the work done equalled the amount being paid.

[McDuck]

The very last few seconds of "The Wolf of Wall Street" is set in New Zealand. The Wolf is running a seminar , the audience are a bunch of gormless New Zealanders. (sheep). He looks over them and I think I know exactly what he's thinking.

Marty did a good job with that film.

The reporter who did the Herald story did a really great job with the research. Nice one.
PS: the companies registrar shows how many shares our man has in other companies.

[BigDreamer]

I would have been one of those unfortunate people as I was so close on purchasing a house yet to be built in Gulf Harbour by Rok Build but thankfully backed out as did not get a good vibe and a month later I notice Sentient has taken over the sites. Now, over 6 months still no development on any of those sites.

[Wayne]

The reporting in that article is pretty bad as usual.

taught by the fraudster featured in the Wolf of Wall Street

Really?
Since when does a speech = taught?

I think Rok Build was a victim of this also - Tribeca owe them for work they did for them.

[Meehole]

I heard that Benchmark in Christchurch has folded, anyone else heard this?
I've been a Design & Build sales consultant and I know for a fact that all these companies build their houses for the same square metre rate as long as you are comparing apples with apples.
It's when the company reduces their margin to secure work that they get into trouble. You only have to have a hiccup and the build time stretches from 16 weeks to 26 weeks and the profit gets eaten up.
The private builder gets screwed over more than anyone and they're damned if they subcontract to the housing company and damned if they go out on their own.
It's no wonder there is a shortage of builders, those with any nouse are off the tools and project managing where they are paid on a fortnightly basis.

[Damap]

You are right it's the budget guys that can't survive. But we all love a bargain don't we.

[PTILoveYou]

It's a common problem when a chartered accountant going outside of his expertise and venture in the dark world of property development, 'wink, wink'

[Damap]

Hahahahaha. I get you man!