KEY POINTS:
Jimmy Mehta says he is "still reeling from the shock" after he learned the money he had invested for his son's university fees might not be seen again.
The 50-year-old, who works as an electronics salesman in Manukau, was among the many stung by yesterday's announcement from Lombard Finance and Investments that it was suspending all payments of capital and interest to its investors.
The finance company is thought to owe about $127 million to holders of secured debenture stock and subordinated notes. Mr Mehta, who came to New Zealand with his wife from Mumbai 13 years ago, said he had about $16,000 in secured and unsecured funds with Lombard.
He said the money, which he had reinvested over the past four years, was going to pay for his young son's university fees.
"I can't quite believe it's happening. I'm just going to go home a bit later, sit with my wife and decide what we can do from here."
He said he had phoned Lombard with concerns about his investments following the collapse of Bridgecorp and other finance companies last year.
"But they said not to worry. 'It's not going to happen to us and we can assure you it won't'.
"There seemed to be nothing wrong with it ... The staff were always nice and always answered my calls so I had no reason to worry, I thought."
Mr Mehta remains philosophical, but has resigned himself to the possibility that he won't see much - if any - of his money again.
"Maybe I've just got to breathe in and say I'm not the only one. This could be a lesson for everyone to make sure of who they're investing with."
Another investor, a Napier caregiver whom the Herald agreed to refer to as "Margaret", said she had recently reinvested $30,000 of first-ranking secured debenture stock for two years with Lombard.
"I remember telling my son he should invest in it too and he turned me down flat - he's kept his money in the bank.
"We have other investments out there and of course I'm a bit nervous, you don't know what's safe any more."
Margaret said she had struggled to break the news to her husband, who has been working in Australia for more than a year.
"It's devastating. That was our retirement fund ... I mean, how many caregivers earn a decent wage anyway?
"I think there are certain people who run these companies who should try and help pay us back. We have helped to get them to where they are."
