Troubled investor pulls out of arena

An American investor whose companies are in financial trouble has left the management board of Auckland's new Vector Arena.

Jack Utsick has resigned as a director of Quay Park Arena Management.

The Miami-based investor has been charged in the United States with defrauding investors of $470 million.

The United States Securities and Exchange Commission said last month it had filed a civil injunctive action in the Southern District of Florida court, charging Worldwide Entertainment and the Entertainment Group Fund and their principal Utsick with a fraudulent offering that raised more than US$300 million ($472 million) from 3300 American investors.

The commission also brought the charges against American Enterprises and Entertainment Funds and their principals Robert Yeager and Donna Yeager.

Australian-based Kevin Jacobsen of Jacobsen Venture Management, which has the contract to run the arena, said Utsick had resigned as a director last month and had been replaced by company receivers.

Jacobsen said he was shocked to learn of the collapse but said measures were put in place to cover such an event and more than enough money was available to run the stadium's management from August 31.

"Since Jack's companies have gone into receivership, there are adequate provisions in the agreement to deal with situations like this."

An Audit Office report into the arena said business failure would mean the council would have to take over the facility using its step-in or termination rights included in the agreement with QPAM.

It said council officers interviewed said the council had no experience in operating a major events venue.