More money owed by collapsed planner under SFO scrutiny

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The liquidators for financial planners Mike and Jackie Bradley’s failed business have found there’s more missing money owed to investors.  

Wednesday, August 11th 2010, 5:00AM

by Paul McBeth

Brian Mayo-Smith of BDO said the liquidators have received claims from 54 investors owed $17.8 million to date, up from the initial estimate of $12 million outstanding to some 30 people.

"To date we have not been able to verify the existence of any investments made with investor funds deposited into the company bank accounts," Mayo-Smith's report said. "Our review of company records indicates that investors' monies received have been utilised to pay other investors and expenses of the company. We have not received satisfactory explanations from the directors in this respect."

The Companies Office began investigating the couple's businesses last year after receiving complaints, and the Serious Fraud Office was called in January to look into the affairs the failed companies' books. The SFO is still investigating.

Some cash was held in an Australian fund this was being held on trust for individual investors, and the liquidator was contacting each affected person accordingly.

Mayo-Smith said they had recovered $133,500 from the firms' cash held at the bank and office furniture. The liquidator also hopes to claw back some money from the sale of the Bradley's Remuera property, which was subject to an unconditional sale and purchase agreement. The property was valued at $4.7 million last year.

"The liquidators have successfully obtained a freezing order over the property and, absent satisfactory agreement with the Bradleys, will be seeking direction of the court for allocation of surplus funds," Mayo-Smith said. "We are however aware that there is a substantial amount owing on a bank mortgage secured against this property."

The liquidator said it was not practical to give a timeline for the process to finish.

Paul is a staff writer for Good Returns based in Wellington.

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