Hubbard's appeal to Minister

Allan Hubbard. Photo / NZ Listener

Allan Hubbard wants Commerce Minister Simon Power to review the basis on which he, wife Jean and a slew of Hubbard-related companies were slapped into statutory management in June 2010.

Hubbard sent a memorandum to Power late last week setting out his concerns over the basis on which the Securities Commission recommended to Cabinet it should impose the statutory management order, and also ask the Serious Fraud Office to investigate Aorangi Securities and Allen and Jean Hubbard for possible fraud.

"The Securities Commission, Government caucus and the Governor-General have all been misled by a report that is clearly incorrect and has not been subject to any separate verification or been open to challenge by other parties involved," Hubbard's memo said.

Hubbard's action came as SFO director Adam Feeley's office waits on lawyer Mike Heron to respond on the 82-year old financier's behalf to a range of possible charges which were outlined prior to Christmas.

Hubbard claims the SFO did not want to meet him personally - "just charge me".

The Business Herald understands the SFO has indicated that it had narrowed its investigation to four particular issues - one relates to the failure to issue a prospectus for Aorangi Securities, and, another focuses on statements Hubbard Funds Management made which are alleged to have misled investors.

"I think the charges they are proposing are ridiculous and I cannot see any court of law upholding them," said Hubbard. "I've stolen no money - they're dreaming up charges."

In his two-page memorandum, Hubbard took issue with the June 2010 report from Registrar of Companies Neville Harris to the Securities Commission which Hubbard said indicated Aorangi Securities had been trading recklessly, was insolvent, had made the majority of its loans to Hubbard, had no security for the loans, and had made loans which were not authorised by investors.

Hubbard said he and his wife Jean were prepared to arrange for their solicitor to confirm none of the Aorangi advances had been made to them personally and also confirm they had subordinated personal assets of $32,035,078 to the company in favour of investors.

Hubbard maintains Aorangi had never traded recklessly, had always paid its interest seven days before due, was not insolvent and had always paid obligations without default during its 36-year history. "The action taken signalled the death knell for South Canterbury Finance with incoming deposits immediately falling from $2 million weekly to $200,000 per week," he wrote.

SCF collapsed on August 31 last year after it failed to get a recapitalisation together, resulting in a $1.775 billion Government payout.