Hubbardgate Scandal...

[kieran]

The biggest scandal in New Zealands finance history is likely unfolding right now...

Have been watching with interest the developments of the Hubbard/South Canterbury Finance Ltd (SCF) case...

Allan is NZs wealthiest financier (worth @$500M) with an impeccable reputation and record of 60 years in the industry, has supported over 30,000 NZ businesses, donated many millions of $ to charity and it appears his empire is under seige...

Background

A) Hubbard owns most of Sth Canterbury Finance Ltd (SCF)

B) Hubbard also owns several charitable trusts and a company called Aorangi Securities Ltd (AOS). All of the trusts and AOS were recently placed into statutory management by the government after a single investor made a compalint... (AOS has over 400 investors).

The Scandal

It would appear that a group of 'heavy hitters' may be attempting to muscle Allans wealth from him... using none other than government authorities to support their cause... possibly for the purposes of eventually folding those assets into the proposed 'Heartland Bank'.

The basic concept appears to be to muscle Hubbard out of SCF and discredit him.

The Potentially Smoking Guns

It appears there are several potential conflicts of interest surrounding the matter including:

1) Simon Botherway of the Securities Commission.
Botherway of the Securities Commission (which recommended Allan and Jean Hubbard) be placed in statutory management is also the brother of a businessman placed in receivership by SCF last year.
A formal complaint has now been made to the Ombudsman in relation to Botherways potential conflict

2) SCF link with Trevor Thornton of Grant Thornton Accountants
Grant Thornton are the appointed statutory managers of Hubbards charitable trusts and AOS...
Trevor Francis THORNTON of 345 Withells Road, Christchurch is a Shareholder and Director of GRANT THORNTON LTD
Trevor Francis THORNTON of 345 Withells Road, Christchurch also has a shareholding in PROTEUS HOLDINGS LTD which has a shareholding in SECON TECHNOLOGIES LTD which SOUTH CANTERBURY FINANCE LTD has a shareholding in
It is likely a complaint will be lodged with the Ombudsman in relation to Thorntons potential conflict

3) Sandy Maier temporary CEO of SCF
Maier stated in a press release on 29th Dec 2009
"Alan's desire to support the business was not totally altruistic. Alan believes this is a very good business," Maier said.

WIKIPEDIA DEFINITION OF ALTRUISTIC
Altruism (pronounced /ˈæltruːɪzəm/) is selfless concern for the welfare of others... Altruism is the opposite of selfishness.
It seems odd that the CEO of SCF would utter such words about the cornerstone shareholder...

In contrast just read the glowing testimonials on Allans impeccable reputation at http://www.standbyhubbard.org/?page_id=10

Allan Hubbard has not lost 1c of investors funds in 60 years…

What You Can Do To Help

Please read what REAL people are saying about Allan on the facebook page titled ‘Leave Allan Hubbard Alone’ and please support his cause.

http://www.facebook.com/group.php?gid=126760207363172&v=wall&ref=search

[Winston001]

I fervently hope you are right. If SCF is sound then Maier will find further capital. Alan Hubbard will be vindicated.

Nevertheless I sincerely doubt the Securities Commission took such an extraordinary step on a mere whim or out of spite - which is what you imply.

Its entirely possible that age and time has blunted Alan Hubbards abilities. That doesn't undermine his integrity , merely that none of us are invincible.

[Xav]

I laughed at your "smoking guns". Might want to refresh your memory?

Everyone loves Alan Hubbard and for good reason. That does not make him perfect. A bit of patience until all the facts are known would be prudent.

[donna]

Hi Kieran,

Nice post. There certainly could be more to it - and it will be interesting to see what unfolds.

Cheers,

Donna

[Asterix]

Interesting links, and if accurate surely a massive conflict of interest? Just another example of how naive we are to the amount of influence that is wielded behind the scenes.

This is just as bad as the Supreme court judge sitting on a case involving a lawyer he is involved in business relationships with. Dodgy.

[kieran]

I sincerely doubt the Securities Commission took such an extraordinary step on a mere whim or out of spite - which is what you imply.

I'm not implying any whim or simply spite alone, but what if there is a bigger plan underneath all of this ... like an attempt to gain CONTROL and OWNERSHIP of the HUNDREDS OF MILLIONS of dollars of assets that Allan Hubbard has accumulated with integrity over the last 60 years..?

Everyone loves Alan Hubbard and for good reason. That does not make him perfect. A bit of patience until all the facts are known would be prudent.

I never said Allan was perfect but he is no crook!

Patience... Tell that to the 400 investors, most of whom are retired and are relying on interest payments to survive, who have had their funds frozen by the SFO...

oh and by the way the SFO is the one manufacturing the so called 'facts'...

WE ONLY SEEK THE TRUTH

[CJ]

There is alot more to this story than most people know let alone understand.

Remember:
- The govt guarantees SCF so is on the line for upto $2b if this falls over.
- there is so much related partly lending that if the value of one thing drops, the whole thing falls over.
--For example, SCF has loaned money to Southbury secured over shares in SCF. This is chicken vs egg stuff but the loan is so big that if it defaults, then the secuity (SCF) is worth nothing meaning the loan wont be recovered causing a default.
--likewise, there is a lot of loans from SCF to the farming company owned by SCF. Those farms are probably in negative equity so not only is the investment worth nothing but the loan is as well (since second mortgage).

Tell that to the 400 investors, most of whom are retired and are relying on interest payments to survive, who have had their funds frozen by the SFO...

This refers to Aoriangi (sp?) Investments which was put into statutory management for failing to have an investment and not investing as indicated (2nd mortgages vs 1st mortgages). The mere fact that most of the investors are retired and rely on the income suggests they were not sophisticated investors and therefore should not have been investing without a prospectus. Also, the SM wouldn't have stopped interest payments if they through there was enough money available.

Hubbard has done a lot of good things in his time but so did Madoff. I am not comparing him to Madoff but I am not taking a side until the smoke clears.

If you are so confident that all is 'kosher', then put your money into the Perpetual bonds and get a good 1000% return in less than a year (last time I looked, based on a full recover of their price)

There is alot more detail here if you want to read up: http://www.sharetrader.co.nz/showthr...inance-Limited

[Xav]

So Kieran, do you recommend to people who come to you for advice that they should invest in a finance company that doesn't even have a prospectus?

If you have any evidence that the SFO has manufactured anything then please post it. I note there is a paucity of any information actually pertaining to why the SFO has taken this action in your two posts.

[kieran]

So Kieran, do you recommend to people who come to you for advice that they should invest in a finance company that doesn't even have a prospectus?

I am not an investment adviser.

I am not at liberty to disclose further details at this point in time, all will be revealed in due course...

[blub]

Being accused falsely can be highly destructive to your emotional health and relationships, Thanks to Kieren Trass for revealing the sinsiter side to this whole issue.

[Xav]

I think dodging the question says enough in itself.

Both sides of this need to be put forward so I certainly won't fault you for that, but (for me at least) attacking the character of the SFO's actions without being willing to back it up is far from convincing.

[halfempty]

Speaking of dodging the question....

Kieren could you comment on this thread to settle an argument?

http://www.propertytalk.com/forum/showthread.php?t=26683

[maxim]

2) Trevor Thornton of Grant Thornton Accountants
Grant Thornton are the appointed statutory managers of Hubbards charitable trusts and AOS...
Trevor Francis THORNTON of 345 Withells Road, Christchurch is a Shareholder and Director of GRANT THORNTON LTD
Trevor Francis THORNTON of 345 Withells Road, Christchurch also has a shareholding in PROTEUS HOLDINGS LTD which has a shareholding in SECON TECHNOLOGIES LTD which is a shareholder in...
SOUTH CANTERBURY FINANCE LTD
It is likely a complaint will be lodged with the Ombudsman in relation to Thorntons potential conflict

Re your accusation/smear re Trevor Thornton.

It appears pretty clear to me that TT is acting as a trustee for the McAuley Family Trust (when the shareholders are listed as two members of a family along with an accountant, its pretty clear its a family trust).

That family trust owns 16.67% of Proteus Holdings.

Proteus Holdings owns 4% of Secon Technology.

South Canterbury Finance also owns 16.34% of Secon Technology.

South Canterbury Finance is owned by Southbury.

Where is the potential smoking gun of which you speak?

you have misrepresented facts (TT is obviously a trustee not a beneficial shareholder) and told falsehoods (Secon owning SCF - its the other way round).

I would be very careful if i was you.

[blub]

He has accused a smoking gun of falsehoods on others as well who have done good works

[kieran]

We are only asking questions that need to be asked in the interests of exposing the truth.

Allan has had his reputation smeared without any hard evidence so far.

No-one should feel threatened if they have nothing to hide...