KEY POINTS:
Auckland property specialist Olly Newland has defended Blue Chip investors, saying they unwittingly became the victims of a financial scheme but they were not to blame.
The investors have been accused of being either stupid or greedy by many who are posting dozens of comments on the propertytalk.com website, saying they should have known better.
But Newland, representing a big group trying to recover millions, said in the next few weeks he would prove the critics wrong.
"This was as slick, well-drafted but merciless operation likened to a combination ponzi/pyramid scheme by those caught up in it," Newland said. "And the biggest question of all is: where has the money gone?"
Bernie Montgomerie, an insolvency specialist handling a Gulf Harbour property sold to Blue Chip investors, agrees with Newland.
"What you had in the Blue Chip scenario is Peter paying Paul to pay Mary to pay Phil," Montgomerie said.
Newland said the investors became victims after they were given documented guarantees by Blue Chip and others who worked with the company.
"I have seen innumerable examples of the documentation, letters and blurb given to investors before and after they signed."
He cited many deposits paid by investors which were placed into a BNZ account named Blue Chip Ltd Trust Account or in some cases Blue Chip Corporation Trust Account. But the money left these accounts on the day it was deposited or the next day.
Newland is also concerned about investors who believed Blue Chip properties had code compliance certificates when some did not.
