South Canterbury Finance Limited

[minimoke]

Playing Santa Claus with other people's money and bathing in the applause and accolades. He is a sly one, old Hubbard.

"Sly" doesn't really adequatly describe Hubbar and i'm at a bit of a loss for suggestions.

Heres what the Report says about Aorangi:"This process continues to be hampered by a lack of information including missing or non existent loan documentation and limited or no recent financial information from Aorangi’s borrowers. Additionally, various parties are claiming that subsequent deals have been agreed with Mr Hubbard but were never documented. Here I'd describe him as an incompetent bookkeeper.

Or what about this: "Investigation work continues into the $12.5 million transfers proposed by Mr Hubbard post statutory management. We have met with Mr Hubbard and agreed that $6 million is not part of Aorangi and to allow it would diminish the returns to investors. The $6 million was transferred in December 2009 to one of the entities recently placed into receivership. The remaining $6.5 million is being investigated to ascertain if the documentation supporting the transaction represents the position as described to us. Our concern is that an investor will obtain a preference at the expense of other investors." AH's proposal is clearly dodgy -and thats probably being generous. At the very least he did not and continues not to grasp who the money belongs to and where it has gone.

Or with regard to HMF: "The volatility of the New Zealand dollar against other key currencies and the current volatility of precious metals are also key factors." Here, i'd call AH delusional. He clearly was having difficulty with onshore dairy commodity values but here he is delving into FX and metals.

These matters are pointing to some mental imbalance or illness which a psychologist can probably describe. The Stat Man looks like it was, with even more hindsight, the right thing to do for investors.

[winner69]

Isn't 'dodgy' spelt KOSHER

[Balance]

This is the best from Allan 'Kosher' Hubbard yet - he has been dreaming in his sleep about regaining control of HMF and actually thought that he has been in 'advanced' talks!

What else has he been dreaming over the years? Maybe that he actually knew how to keep accounts?

No plan for Hubbard's return - managers
EMMA BAILEY - The Timaru Herald Last updated 05:00 27/11/2010

There are no plans for Allan Hubbard to take back control of his investment companies, statutory managers say.

Hubbard investors may also be affected by the Pike River coal-mine tragedy, with about $560,000 invested in the company.

The rest of the Hubbard Management Fund (HMF) portfolio had a good month, with some investments fluctuating more than $1 million in a day, the fifth report from the statutory managers, released yesterday, said.

The statutory managers also commented on Mr Hubbard announcing at his launch of his biography on Thursday night that he was in advanced talks to take over HMF by the end of the year and would then work to take back control of Aorangi Securities.

"We have had no formal requests from Mr Hubbard on this type of proposal. There have been no formal discussions."

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Meanwhile, the likes of Enumerate will find out soon enough whether Hubbard will be charged with fraud etc :

SFO Hubbard decision due by Xmas
8:45 AM Wednesday Dec 1, 2010

The Serious Fraud Office (SFO) has finished investigating Timaru businessman Allan Hubbard and is near to making decisions.

SFO chief executive Adam Feeley told the Timaru Herald newspaper that the investigation was no longer active. "We are weighing up a few things," he said.

"We have said all along this should be concluded by Christmas and as each day passes we are getting nearing to a conclusion."

Companies and trusts associated with Hubbard were placed in statutory management on June 20.

South Canterbury Finance (SFC), which Hubbard founded, was not part of the statutory management and collapsed later, triggering a $1.6 billion payout from the Crown retail deposit guarantee scheme.

The statutory management is controversial and Mr Hubbard has many supporters.

The government carried out a "controlled demolition" of Mr Hubbard and SFC on a timetable designed to do it the least political damage, a recent biography of Hubbard by Virginia Green said.

- NZPA

[minimoke]

SFO chief executive Adam Feeley told the Timaru Herald newspaper that the investigation was no longer active. "We are weighing up a few things," he said.

OK I'll put a line in the sand. I reckon AH will not be found guilty of any offence. Heres why.
Feely will be considering the "Public Good" aspect of laying charges. What will the public gain from such an action. Its probably a 50/50 call on that one.

Lets assume charges are laid. its a a 50/50 call on him pleading Not Guilty. Actually I think there is a 100% certainty he will plead not guilty - so that will delay his hearing.

Assume he goes to trial. Will the prosecutors be able to rangle up all the witnesses. Probably not since a few of AH's borrowers appear to have disappeared off shore and will no doubt be hard to locate. With regulators current workload expect at least a several year delay to any court proceedings.

Lets assume there is a hearing. Will he retain his solicitors. He could get to trial day and then fire them - thats always a useful tactic. Will AH live to the end of a trial? Thats another 50/50 call. We know in another affinity fraud case the perp popped his clogs before the end of the trial.

Assume he gets to the end of the trial (and it is a trial that can be decided by jury) its a 50/50 call on a south Canterbury panel finding him guilty. If its a judge decision we know from past experience (FTX) that a guilty verdict is unlikely.

Lets say I'm wrong and he is found guilty will be he be sent to jail. Absolute certainty he won't be. He'll be too old and infirm for any judge to do that. Its only the young and fit like Alan Hawkins that get that kind of treatment. So it will be a fine - except he has no money as he's in Stat Man and it looks like, even if he comes out of Stat Man there won't be a lot left in bank accounts. Community service (say advising on investment matters) would end up being a disservice. So the Judge isn't going to have too many sentencing options.

Which brings me full circle to the things Feely will be weighing up. He'll go for the no-prosecution option.

[Balance]

Which brings me full circle to the things Feely will be weighing up. He'll go for the no-prosecution option.

AH's msdeeds are too glaring to be ignored.

I think he will be prosecuted, plead guilty and given a wet bus-ticket owing to his poor health, public record etc.

[minimoke]

AH's msdeeds are too glaring to be ignored.

I think he will be prosecuted, plead guilty and given a wet bus-ticket owing to his poor health, public record etc.

He's not going to plead guilty. To do that requires some degree of insight and AH has clearly lost that. For starters he reckons he's got $12.5m to juggle around when he hasn't!

[Balance]

He's not going to plead guilty. To do that requires some degree of insight and AH has clearly lost that. For starters he reckons he's got $12.5m to juggle around when he hasn't!

Ah, when you have ben juggling around for as long as he has been between SCF, Southbury, Aorangi etc, Hubbard obviously thinks he is a master juggler.

Pity he did not decide to join the circus rather than the finance industry.

Could have saved NZ many hundreds of millions.

[Enumerate]

Meanwhile, the likes of Enumerate will find out soon enough whether Hubbard will be charged with fraud etc

No need for such mundane detail for the likes of Balance.

Why have charges, evidence, due process ... when you can leap straight to a "guilty" verdict.

No High Court showing for the likes of Balance. Just justice dispensed in the Court of Kangaroo.

[Balance]

No need for such mundane detail for the likes of Balance.

Why have charges, evidence, due process ... when you can leap straight to a "guilty" verdict.

No High Court showing for the likes of Balance. Just justice dispensed in the Court of Kangaroo.

LOL - and you continue to believe in Hubbard's assertions that it is all kosher?

I like his last assertion that he was in 'advanced' discussions to regain control of HMF - to be totally contradicted by the managers that there is no such discussions. True to form, Hubbard still believes his wild imaginings are for real!

It would be comical and amusing but for the fact that he blew several hundred millions of taxpayers' money through his reckless management.

[Enumerate]

The wild-eyed enthusiasm for direct action in 2010, by financial market regulators, is a significant over-reaction to complete inaction 2006 to 2009:

http://www.nzherald.co.nz/business/n...ectid=10691547

Perhaps enforcing the rules before 2006 would have avoided the regrets and pangs of conscience in 2010.

In terms of Mr Hubbard - I remain a supporter. As an investor in Mr Hubbard's company I remain a supporter of his endeavors to use financial resources to help establish worthy and viable businesses. It would be a sad day to hear of fraud charges and I would be shocked to hear of fraud charges laid at Mr Hubbard's doorstep.

If you read the book - you will gain a better insight into why Mr Hubbard supported developing businesses with interest free loans. Maybe we should get the SFO to investigate Islamic Sharia Law investing practice - to balance out their dim view of Mr Hubbard's Christian lending practice.