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White Collar Crime NZ Hansard 1988

#1 User is offline   hukildaspida 

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Posted 13 December 2012 - 10:25 PM

Please be mindful these posts are not in chronological order in which they were heard.

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Parliamentary Debate

DEBATE---GENERAL

Wednesday, June 08, 1988
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DEBATE---GENERAL

Hon. J. B. BOLGER (Leader of the Opposition): I move, That the House take note of miscellaneous business. I want to raise the subject of white-collar crime, and the refusal of the Government---particularly the Minister of Justice---to confront the issue. He just wants to pretend that there is no problem so that he can avoid the responsibility of taking some action. It is interesting that he pretends that there are no problems, yet in October 1986 he is reported to have promised urgent action. In the Auckland Star during October 1986 the Minister said that he had indicated to the Securities Commission his willingness to give urgency to regulations covering contributory mortgage brokers. Since that time the Minister has done nothing, while white-collar crime, scams, and fraud have continued to proliferate and to suck in more innocent investors who lose, and lose heavily, because of the Government's unwillingness to act.

The issue has existed for some years, and many of the same people are in the community practising the same tricks. In the Mercantile Gazette of July 1985, a note was headed: ``The few to watch''. On the ``few to watch'' check-list were John Victor Evans, Gordon Douglas Cochrane, and Paul Percy Chapman. I shall refer to Paul Percy Chapman in a moment. The other significant element in the Mercantile Gazette was the comment that the Minister of Finance was one of those people who had been caught with a first mortgage of $340,000 on the family home to John Evans. However, the unusual aspect noted was that the mortgage was registered by Zurich Holdings Ltd, which had a share capital of $100. The Minister of Finance was caught. I draw that to members' attention because it is not only innocents who are being caught, but also those people who claim to have some expertise in the matter.

I shall return to the matter of Paul Percy Chapman. A company called Advisercorp has recently issued mortgage details for Paul Percy Chapman, 7 Castle Drive, Epsom, Auckland. The address of the security he was offering was Ford Road, Waihi. The alleged valuation of the property---which was the old Waihi Dairy Company---was $2,491,000. According to the document I have, that is the amount the property is alleged to be worth. The Government valuation, which is only 6 months old, is not $2.5 million, but $280,000. The company would be lucky to receive that amount. The mortgage amount sought was $800,000. Therefore it is seeking a mortgage that is three times the property's Government valuation---that is, for Paul Percy Chapman.

The document alleges that there is collateral security---a first mortgage on Marsden Point Road, and a second mortgage on Blows Building, Auckland. In the second document the company seeks money from the public. It is the same Paul Percy Chapman, of the same Auckland address. On this occasion the address of the security is Marsden Point Road, Ruakaka, Whangarei. The valuation of that property is allegedly $2,372,275. The most recent Government valuation that I have been able to obtain is dated 1985. At that time the property was valued at $215,000, not $2.3 million. They are seeking to borrow $500,000 on that property. I draw to members' attention the fact that the property is allegedly the first mortgage collateral security on the Waihi deal. It is clear that there is no security by that means, because if they borrow $500,000 on the Whangarei property in Marsden Point Road they are borrowing at twice the worth of the property. Once again, people are being invited into a scam in which they must inevitably lose.

The third property from Advisercorp has a change in borrower, to Algarvey Trust. It should be noted that the borrower's address is still 7 Castle Drive, Epsom, Auckland. There is a new borrower, in name only. On this occasion the valuation of the property is claimed to be $10 million, yet the valuation is $1.5 million. On that property they seek to borrow $1.5 million. Once again we see the name of Mr Paul Percy Chapman. He has claimed to give a personal guarantee, for what that is worth---back in 1985 he had nothing. Unless he has been more successful with his scams, he will have nothing now, either. Also put up as collateral security is the first mortgage on the Waihi factory and the first mortgage on the property at Marsden Point Road. It is obvious that neither of those properties has any residual value that can be put up as collateral.

Those are three very recent examples. I am told that the first of those---the mortgage sought for the Ford Road Waihi dairy factory---has already been filled. In other words, gullible people have been sucked into advancing $800,000 on a property that has a Government valuation of $280,000. I make the point that that practice is not new. Such scams have been going on throughout the term of the Minister of Justice, and the Minister refuses to do anything about them.

I refer back to 9 December 1985 and another of the well-known names in the ``gang of 20'', Mr P. Hoffman. He has been in and out of the system many times, and this time he was trying to borrow on an alleged capital value of $530,000, when the Government valuation on the property was $45,000. The Minister will know of that case. Several valuers have been prepared to put any valuation on properties to support companies going out and taking money from the public just as illegally as any other way. They are able to do that because the Minister refuses to bring in the appropriate controls to identify the culprits and deal with them. Many of them are undischarged bankrupts.

I said yesterday that I had a copy of a memorandum from a chief investigating officer of the Department of Justice fraud unit in Auckland, Mr Keith Peterson, who was asking the Government to take some desperate action. In that document he identified 23 companies that were apparently involved either directly or indirectly in fraudulent property dealings and transactions. He, as a senior officer of the Department of Justice, begs to be allowed to investigate those companies. I shall read the list to the House to let members know what is going on.

The list is: Waikato Financial Services Ltd; Strata Resources Ltd---in receivership and liquidation; Strata Management Finance Ltd; Strata Corporation Ltd; Strata Export Import Ltd; Emmanuel Ventures Ltd; Emmanuel Enterprises Ltd; Genesis Kauri Ltd; Fourth Floor Consultants Ltd; Nordic Manufacturing Company Ltd; A. S. Hodson Holdings Ltd; Houston Enterprises Ltd; Woolbridge Holdings Ltd; Hams Barton Ltd; Restful Accommodation Services Ltd; Australasia Fish Exchange Ltd; Mothers Trading Company Ltd---now Trinity Investments Ltd; Cu-Bro Holdings Ltd; Thomas Williams Nominees Ltd; Investors Protection Ltd; Brentford Estates Ltd; Treblock Investments Ltd; and Downsview Nominees Ltd. Government members laugh, but a senior investigating officer of the Department of Justice has put to his head office, and to the head office of the Minister, the request that he be allowed to protect New Zealanders. The Government will not act.
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#2 User is offline   hukildaspida 

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Posted 13 December 2012 - 10:28 PM

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New Zealand Parliamentary Debate

Thursday, October 20, 1988


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QUESTIONS ON NOTICE : Investment Investigation

QUESTIONS ON NOTICE

Investment Investigation

1. Hon. J. B. BOLGER (Leader of the Opposition) to the Minister of Justice: Has his department begun an investigation into Mr John Victor Evans and his links with Houston Enterprises and Evian Investments; if so, what is the nature of that investigation?

Rt. Hon. GEOFFREY PALMER (Minister of Justice): Mr Evans is an undischarged bankrupt, and his alleged involvement in the management of both Houston Enterprises and Evian Investments has been the subject of an intensive investigation, which is now complete. The file has been referred to the Crown Solicitor in Hamilton, and it would be inappropriate to comment further.

Hon. J. B. Bolger: Can the Minister confirm that the investigation by the Department of Justice began more than a month ago, and that the inability of the department to complete the investigation led to the pickets and the threats of violence outside the Waitomo Country Lodge recently?

Rt. Hon. GEOFFREY PALMER: I most certainly can confirm absolutely none of that.

Hon. J. B. Bolger: When then did the investigation into Mr John Victor Evans commence?

Rt. Hon. GEOFFREY PALMER: Mr John Victor Evans has been the subject of several investigations by my officers, and it is a matter of which one the member is referring to.

Hon. J. B. Bolger: If Mr John Victor Evans has been the subject of several investigations by the department, and has been under scrutiny for criminal activities, why did the head of the corporate fraud unit say that he was one of his sources of information?

Rt. Hon. GEOFFREY PALMER: Mr John Victor Evans has been under scrutiny not only by my department but also by the Inland Revenue Department.
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#3 User is offline   hukildaspida 

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Posted 13 December 2012 - 10:29 PM

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New Zealand Parliamentary Debate

Wednesday, September 20, 1989

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QUESTIONS ON NOTICE : Registered Securities Ltd

Registered Securities Ltd

13. PAUL EAST (Rotorua) to the Minister of Police: What investigations, if any, are the police making into the collapse of Registered Securities Ltd, and have any charges been laid against office holders or former office holders of that company?


Rt. Hon. JONATHAN HUNT (Minister of Housing), on behalf of the Minister of Police: The Auckland police company fraud squad commenced a criminal investigation into the collapse of Registered Securities Ltd in August 1988. The fraud investigation is lengthy and complex, and is nearing completion.
David Logan Samuel, a former director and founder of Registered Securities Ltd, was arrested by fraud squad detectives on Friday, 8 September 1989, on two charges of perjury. Those charges relate to an affidavit sworn by him in support of an application for an injunction against Wellington Newspapers Ltd to prevent publication of a series of articles about certain transactions made by Registered Securities Ltd and its directors.

Paul East: Could that possibly be the same Registered Securities Ltd that the Prime Minister---then Minister of Justice---told Parliament on 13 July 1988 had been successfully restructured, and on 8 June described as being a company in which the investing public was not at risk?

Rt. Hon. JONATHAN HUNT: It is possible.

Richard Northey: Will investors in Registered Securities Ltd receive any payout when the High Court considers the matter?

Rt. Hon. JONATHAN HUNT: That will be resolved when the High Court has finally decided the matter.
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#4 User is offline   hukildaspida 

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Posted 13 December 2012 - 10:31 PM

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New Zealand Parliamentary Debate

Thursday, July 28, 1988

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QUESTIONS FOR ORAL ANSWER QUESTIONS OF THE DAY : Registered Securities Ltd

Registered Securities Ltd

5. BILL DILLON (Hamilton East) to the Minister of Justice: What information does he have about a run on the funds of Registered Securities Ltd before the filing of petition for winding up?

Rt. Hon. GEOFFREY PALMER (Minister of Justice): I am informed that 4 days before the stop on funds 199 investors requested the early repayment of $2.8 million. That run, and a 70 percent decline in new funds and reinvestments caused by the adverse publicity directed at the company, forced it to close its doors on 22 July. That answer demonstrates the harm that ill-considered and incompetent attacks on companies can do to investors.


Bill Dillon: What is the relationship between the date when statements were made on the topic by the Leader of the Opposition and the time when a run on the funds took place?

Rt. Hon. GEOFFREY PALMER: The run was at its height last Wednesday, when the Leader of the Opposition, under the cloak of absolute privilege, brought the affairs of the company to the attention of the House.

Hon. J. B. Bolger: How can the Minister reconcile his answer with the fact that, in an affidavit in the High Court on 24 June---in a submission to support an injunction to gag the Dominion---David Logan Samuel, a director of Registered Securities Ltd, ``duly authorised to make this affidavit on their behalf'', stated that, whereas previously ``investment had remained steady at a level exceeding 80 percent until the beginning of the publicity in the defendant's newspapers, it now has deteriorated to a level of around 10 percent'', and with the fact that Registered Securities Ltd was first mentioned in the House by me on 13 July?

Rt. Hon. GEOFFREY PALMER: I reconcile it very easily. The Leader of the Opposition has been in league with a group of irresponsible journalists. They have done some of the work, and he has done some of the other. The business of those people is to knock companies.
[Interruption.]

Mr ACTING SPEAKER: I realise the interest of honourable members in the presence of the journalists in the press gallery, but the Standing Orders do not allow members to address people from their benches, other than those people in the Chamber. I would appreciate it if members would observe that rule. I also ask Opposition members to cease the completely unreasonable level of interjection.

Rt. Hon. GEOFFREY PALMER: The matter raised by the Leader of the Oppposition has absolutely nothing to do with the heavy run on the funds of Registered Securities Ltd last week.
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