SFO delays Hubbard probe decision

Allan Hubbard Photo / The Listener

The Serious Fraud Office has delayed a decision on its investigation into Allan Hubbard's business empire until the New Year after his lawyers sought more time to respond.

The SFO has completed the investigation phase of its probe into Aorangi Securities but Hubbard's lawyers, Russell McVeagh, said they sought more time to "put further relevant information before the SFO.

"Hubbard continues to deny any criminal wrongdoing," according to a statement from the law firm.

Russell McVeagh said the statutory managers of Hubbard's empire have not covered his legal costs and "this continues to cause difficulties."

They have restricted Hubbard's access to his own funds since June 20 to a weekly allowance.

SFO executive Adam Feeley confirmed his office had accepted a delay until the New Year.

"What they want to put in front of us will be received with an open mind, and will get whatever time it needs," Feeley said.

"We don't envisage there being a long delay in the New Year."

Aorangi's statutory managers, Richard Simpson, Trevor Thornton and Graeme McGlinn of Grant Thornton New Zealand, released their fifth report last month.

It said the process of sorting out the firm's affairs continued to be hampered by a lack of information, including missing or non-existent loan documents and limited or no recent financial information from borrowers.

Aorangi had mortgage loans amounting to $59 million, as well as 15 direct and a $24 million loan to Te Tua Charitable Trust.

The report said only one in five borrowers is paying interest on their loans to Aorangi Securities.