The liquidator for the Blue Chip group of companies has filed a $40 million claim against the failed property investment group, which banked investors' funds straight into its own bank accounts instead of into trust accounts.
The statement of claim, lodged in the High Court in Auckland, is against Blue Chip's former directors and auditors, and on behalf of about 800 investors, liquidator Jeff Meltzer of Meltzer Mason Heath said in a statement.
The suit focuses on the post-2006 period, when Blue Chip sold apartments off development plans in Auckland's central business district, and alleges there were "inherent flaws'' in the business model which led to its collapse.
"These inherent flaws were compounded by the way the business model was operated,'' Meltzer said. "Rather than purchasers' deposits being held in a solicitor's trust account, they were instead paid to Blue Chip.''
Former Blue Chip boss Mark Bryers faces indefinite bankruptcy in New Zealand after the Official Assignee lodged an objection against discharging him. He was bankrupted in 2009 after his Blue Chip scheme started falling over.