KEY POINTS:
The owner of a failed private training college has been banned from running a company for almost four years after racking up debts of $2 million through four other failed businesses.
Robyn Case was behind taxpayer-funded Case Boreham Associates, a training school for teacher aides, which collapsed in March cutting loose 120 students.
The failure came after years of New Zealand Qualifications Authority audits highlighted massive problems in the way it managed and delivered the teacher aide programme.
Now Case is prohibited from running any company until 2011 because of management failures that led to the collapse of four businesses connected to her property empire.
It is the same property group that Case has previously been accused of propping up with taxpayer money intended for training teacher aides - and the group that features bankrupt "business coach" Shane Wenzel.
An investigation by the Ministry of Economic Development's National Enforcement Unit into four companies in liquidation identified a failure by Case to pay tax, "misappropriation of assets" and failure to keep proper accounts.
The resulting report was considered by Peter Barker, deputy registrar of companies, and this led to the banning order.
The failed companies were SCI Properties, SCI Development and Construction, Barrea Group and Business Advisory Services. Between them, they owe creditors $2 million, $600,000 of which is unpaid tax.
Barker found that Case believed she was the victim of a conspiracy and that by banning her "she will believe that I have joined in the general conspiracy against her".
The banning report charted widespread mismanagement through the four companies, and also reported the belief of liquidators of SCI Properties that Case had misappropriated funds during the sale of properties brought by the companies.
The report said Case had given an explanation for money that was not paid to SCI Properties but her reasoning was unsustainable. "Quite probably the director [Case] is covering her tracks because of the deceit which occurred at the company's expense."
The investigators stated that liquidators who dealt with the failed companies were obstructed by Case, and in some cases, she refused to provide accounts.
"There are indications the affairs of the companies were heavily intermingled, were not adequately documented and did not receive adequate consideration for funds transferred and loaned by the respective companies," the report stated.
Barker noted Case's denial that she misappropriated funds, adding "Ms Case says she is right and everyone else is wrong".
He said Case had not proved the statement.
He also warned Case that efforts she was making to clear her name might affect other business ventures she was involved in.
Insight into property deals
The report into banning Robyn Case from running companies has given an insight into one of the property deals run by her group of companies.
The deal allowed a company in which Case was a director to buy a house with other people's money, turn it into two houses - and transfer both to a business colleague of Case's without the actual owners getting a cent.
The original property in Kirton Crescent in Mangere was owned by Barrea Group, a company owned by Case and a Rotorua investor.
Barrea Group bought the Mangere property with $170,000 of borrowed money. It then borrowed $196,000 through Westpac to subdivide and build a new house.
Once built, the house was sold to Jose Barnes, a business colleague of Case's and a director in related companies, for $312,000.
Records from Barrea Group, now in liquidation, show the newly-developed property was sold for $312,000 - but only $66,561 went back to Barrea Group, and even then the money was paid to Westpac to satisfy part of the mortgage. There is no indication where the remainder of the money went.
Then, bizarrely, when the property transfer was put through, it transferred both the original property and the developed property to Barnes.
A caveat has now been placed on the property in an attempt by liquidators to get the original property to help meet the company's debts.
Barnes wrote to the Herald on Sunday stating: "I bought the property and settled the property as per sale and purchase and I instructed my lawyers to do so.
"Barrea Group had their lawyers and it was a clear settlement of the property. What I have done after purchase is my business."
