Hubbard’s letter in the post - maybe

Investors expecting to receive a letter from Allan Hubbard as part of plans to regain control of his investment companies may be disappointed.

Thursday, January 13th 2011, 10:26PM 6 Comments

by Benn Bathgate

Reports said the Timaru businessman planned to write to investors directly to "show them a totally different picture" of the state of his investment companies.

However, Hubbard told Good Returns the idea "was only a suggestion, and has got to be approved by the statutory manager."

Hubbard told the Timaru Herald his lawyers were working to get him back in control of investment companies Aorangi Securities, Hubbard Management Funds, South Canterbury Finance and seven charitable trusts.

Hubbard said Aorangi still contained "good assets" and that it had only been placed into statutory management after an "anonymous and malicious complaint" regarding the lack of a disclosure statement -  which Hubbard said was not required as Aorangi did not take money from the public - only high-net worth individuals.

He said that once Aorangi was placed into statutory management - incorrectly in his view - a ‘domino effect' began which saw investments into South Canterbury Finance fall off from $200 million to just $200,000.

He said he was in the process of putting together an investment prospectus for Aorangi and that the statutory managers "haven't really achieved anything."

He also claimed a New York-based investment fund had offered to acquire South Canterbury Finance but that the "Government chose not to accept that offer."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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Comments from our readers

On 14 January 2011 at 8:02 am Rowntree said:
One must feel sorry for a sad old deluded man, once so powerful, now to be pitied. His and mostly his actions alone (he didn't have good directors to challenge his decisions) caused the taxpayers to pay out a huge sum. He is in denial. Stop blaming civil servants and admit you stuffed up hugely.
On 14 January 2011 at 11:31 am JJ said:
All Mr Hubbard is doing is trying to get investor's money back. What would you do Rowntree? Walk away?
On 14 January 2011 at 4:09 pm billy the broker said:
Considering that it is looking very likely that Mr Hubbard was running a ponzi
scheme, he should walk away and hope he won't get prosecuted. Instead of trying to stand up and still try to promote himself has having been victimized.The victims are the ones that have lost life savings, we don't hear about the ones he has hurt.I myself have met to families and they were'nt pretty pictures. I wonder if Hubbard will help them??I think not!!
On 14 January 2011 at 9:30 pm Brucie said:
I have read the very good book "A man out of time" which shows he was clearly out of his depth when the downturn cam and is blaming everyone except himself.His record keeping and prospectus for investments were inadequate and he committed what would be in other countries massive fraud on his investors.No amount of support from some one eyed supporters can miscontrue the facts that he failed in many areas, and is in fact a deluded old man who should spend many years in close confinement, supervision and jail time.
On 15 January 2011 at 7:47 pm billy the broker said:
Tell the fools here in Timaru Bruce, about they saw the light!
On 16 January 2011 at 2:28 pm Christopher said:
This debacle is costing the taxpayer $'s. Obviously a personable old fellow who has run a major business in a less than business like manner and his poking at the embers looks very forlorn.A good time for him to get in the VW and take a holiday trip around NZ with his wife - how about those vocal supporters putting their taxpayer refunded money where their mouths are and contributing to a fund for his holiday and retirement.
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