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A man who attracted more than $80 million from investors marketing a "fuel saving petrol pill" in Australia was referred to the New Zealand Commerce Commission for claims he made with a similar product 16 years ago.
Tim Johnston, 51, chairman of the company Firepower, which bought Australia's
leading basketball team the Sydney Kings, is being sought by authorities.
It is suspected he is living an upmarket life in London.
Details of Johnston's business dealings have been hitting headlines in Australia - most recently because the Kings' wages were paid late, then not paid at all, before the team's licence was revoked on June 12.
Current news reports across the Tasman bear the hallmarks of 1992 reports in New Zealand, with Australian media revealing allegations of dodgy dealings and accusations that the fuel-saving benefits of Firepower's pill are unproven.
A four-month investigation by the National Business Review, reported in August 1992, said New Zealanders were spending up to $100,000 a month on a petrol pill claiming to reduce fuel costs by 17 per cent.
When put into vehicles, the pills were supposed to cut emissions, save on fuel costs and give cars more power.
But the paper could not find any evidence the pills, sold through a multi-level marketing campaign, worked.
"Investigations by the NBR have found the company's marketing plan is fraught with false and misleading statements which the Commerce Commission has been investigating for several months," it reported.
The NBR said its inquiries into companies Johnston was dealing with, tests he said were run on the product and organisations he claimed recommended the pills revealed questionable conduct.
The NZ Automobile Association ran tests on the products and made similar findings in relation to what it termed Johnston's "dubious motoring products" in September 1992.
The Sydney Morning Herald reported that Firepower sold more than $80 million of shares to Australian and overseas investors on the promise of a stunning share market listing in London.
Investors included high-profile league players, diplomats, doctors, accountants, media figures and mum-and-dad speculators. Some expected the shares they bought for between A5c and A$1.33 would be worth up to A$7 when the company listed on the Alternative Investment Market.
But Johnston left nothing but a trail of defunct business entities, empty offices and folded websites.
The Australian Tax Office and the Australian Securities and Investment Commission are among those seeking him. The Independent reported that the Kings' liquidator was seeking a warrant for his arrest.
- additional reporting: agencies
