Details of charges start to emerge
What Hubbard had been up to.
Aorangi investments non-existent: SFO
EMMA BAILEY Last updated 10:12 01/07/2011
Some investors in Allan Hubbard's Aorangi Securities believed they had seven-figure sums in the company, but these did not actually exist, the Serious Fraud Office alleges.
Details of the 50 fraud charges laid by the SFO against the Timaru financier are emerging this morning.
Hubbard was due to make his first appearance in the Timaru District Court on Monday, but that was yesterday adjourned to August 29 by agreement between his lawyer and the SFO.
However, documents relating to the case were made available to the media at the court this morning.
One of the charges reads: ''He, with intent to deceive [an investor] made or caused to be made, or concurred in the making of, a false entry in an account. A statement of account for the period 31 December 2009 to 30 June 2010 showing an investment of $5,821,441, when in fact no such investment existed in Aorangi Securities Ltd.''
Another similar charge relates to a different investor's investment of $1.45 million, which the SFO also alleges did not exist.
The SFO laid the charges on June 20 under sections 220, 242 and 260 of the Crimes Act, after a 12-month investigation.
The charges relate to theft by a person in a special relationship, false statement by a promoter and false accounting.
Charges under the latter two sections carry a maximum term of 10 years' imprisonment.
Hubbard's wife, Jean, who was placed in statutory management along with her husband, their companies Aorangi Securities and Hubbard Management Funds, and a number of charitable trusts, has not been charged.
Updated Details of Charges
Enumerate would say of course that these charges are but sloppy accounting.
How can anyone expect an 80 year old to remember how many shares are held by HFM and Aorangi in various entities? Especially when his pencils are down to the last 1 inch (waste not, see?).
Heck, what's the big deal between a first and second mortgage? Our school system these days says it's okay to come last - as long as you try hard.
As for the $210,000 deposited into Hubbard's own nominee account instead of paying down debt, that's just a temporary arrangement. He just forgot to take it out later. After all, he is an old man.
These are all trumped up charges, designed to destroy an honorable man who will never dream of deceiving anyone.
Aorangi investments non-existent: SFO
EMMA BAILEY Last updated 12:12 01/07/2011
Some investors in Allan Hubbard's Aorangi Securities believed they had seven-figure sums in the company, but these did not actually exist, the Serious Fraud Office alleges.
Details of the 50 fraud charges laid by the Serious Fraud Office (SFO) against the Timaru financier have been released this morning.
Mr Hubbard was due to make his first appearance in the Timaru District Court on Monday, but that was yesterday adjourned to August 29 by agreement between his lawyer and the SFO.
The SFO laid the charges on June 20 under sections 220, 242 and 260 of the Crimes Act, after a 12-month investigation.
The charges relate to theft by a person in a special relationship, false statement by a promoter and false accounting.
Charges under the latter two sections carry a maximum term of 10 years' imprisonment.
In a statement on the day charges were laid, Mr Hubbard's lawyer, Mike Heron, said he ''strenuously denied'' the charges and ''at the appropriate stage'' an application would be filed ''to stop the prosecution''.
Two charges allege investors believed they had seven-figure investments when they were not held.
The first charge, of false accounting, reads: ''He, with intent to deceive [an investor] made or caused to be made, or concurred in the making of, a false entry in an account. A statement of account for the period 31 December 2009 to 30 June 2010 showing an investment of $5,821,441, when in fact no such investment existed in Aorangi Securities Ltd.''
The SFO claims a second investor believed they held $1,456,253 when there was no such deposit.
Another charge alleges the same investor believed funds had been deposited in South Canterbury Finance (SCF) but the SFO alleges the bulk of the funds had not been.
A farm partnership, it is alleged, sent $210,000 to accounting firm H C Partners for payment of debt but this was instead paid to Mr Hubbard's Forresters Nominee Company.
Another charge relates to a letter sent to an investor, stating that the majority of Aorangi Securities investments were held by first mortgages. The SFO alleges that this was not the case.
Another charge of false accounting relates to a statement of account sent to 367 investors, showing that approximately $89 million was secured by way of mortgage when according to the SFO ''in fact the majority of investments were not secured by way of mortgage to Aorangi''.
A charge of theft by a person in a special relationship alleges that 500,000 Marac Finance shares held for an estate were transferred without payment to another individual.
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Twenty-five charges relate to Aorangi investors with investments made on the basis that they were secured by way of mortgage, many by first mortgage.
Ten of the charges of false accounting relate to securities said to be held by Hubbard Management Funds, which allegedly did not exist in the amounts they were said to.
''He, with intent to deceive investors in Hubbard Management Funds made a false entry in an account or document for accounting purposes.
''A statement to Hubbard Management Funds investors showing Fletcher Building Limited securities allocation to investors of 336,300 when that number of securities were not held, resulting in a shortfall.''
The other nine charges relate to the level of securities held in Freightways, NZ Oil and Gas, Pacific Edge, Pyne Gould Corporation, Rakon, Ryman Healthcare, Smartpay, Marac, and Diligent Member Services.
Seven charges of false accounting under Sections 260 and 261 relate to ''statement of account to Aorangi Securities investors reporting investments secured by way of a mortgage when in fact the majority were not''.
Mr Hubbard's wife, Jean, who was placed in statutory management along with her husband, their companies Aorangi Securities and Hubbard Management Funds, and a number of charitable trusts on June 20 last year, has not been charged.