KEY POINTS:
The Serious Fraud Office is investigating the failure of Five Star Consumer Finance.
SFO director Grant Liddell confirmed the inquiry days after launching simultaneous investigations into Bridgecorp and Blue Chip but declined to comment further.
An earlier Herald on Sunday report on the Five Star group directed by Marcus MacDonald, Nicholas Kirk and Anthony Bowden found:
More than $42 million is unlikely to be recovered from Five Star Finance and a further $41m from subsidiary Five Star Consumer Finance.
Investors in Five Star Debenture Nominee were told money would be invested into secured consumer loans.
Liquidator Paul Sargison says at least $14.5m was loaned unsecured to companies and trusts that may be associated with the directors or an employee of the Five Star Group.
Neither Kirk nor MacDonald (overseas) could be reached for comment but Bowden said lawyers had advised them to remain silent.
Angry Five Star Debenture Nominee investors, who invested $42.5m in Five Star Finance, believed all the money invested was supposed to finance secured personal loans of between $3000 and $5000. They were shocked to discover at least $14.5m was invested into commercial loans, some unsecured.
