Firm liquidated, linked to alleged ponzi

A company suspected of being involved in what is thought to be a significant ponzi scheme has gone into liquidation.

In July, the Serious Fraud Office (SFO) and Financial Markets Authority (FMA) said they were investigating Christchurch-based Paul Clifford Hibbs and his company, Hansa.

While regulators would not comment further, investor John Docherty alleged in September that he and his wife had been swindled out of $650,000.

The SFO and FMA have both declined to respond to Docherty’s claims, but sources have since said investors were told at least $20 million was missing.

Hansa was tipped into liquidation on application by Docherty and his wife in November last year.

Waterstone Insolvency liquidator Damien Grant said in December they had so far identified payments of at least $9m into the company.

Liquidators obtained freezing orders over all of Hibbs’ assets, and the first liquidators’ report said investigations showed Hansa had failed to invest and manage funds in accordance with agreements signed with investors.

‘‘Instead, the company appears to have been run as a ponzi scheme under which investors’ funds appear to have been misappropriated,’’ liquidators said.

‘‘It appears that a number of related entities, in particular Cameron Gladstone Investments, are similarly involved in the fraud.’’

That related entity was on Thursday put into liquidation on application by Waterstone Insolvency.

Grant said that while there were two different companies, the liquidators believed it was really just one scheme. ‘‘Now that we’ve got access to both we’ll be able to see the full extent of what has happened.’’

Grant said it would probably take a couple of months to get clarity but they should be able to provide creditors with much better information soon.

Hibbs’ house had also been sold by consent, but this would only recoup about $79,000 once all was said and done.

Another business owned by Hibbs, Christchurch-based Boutique Hair & Beauty, went into receivership in February owing more than $1.4m.

PHOTO: FAIRFAX NZ Liquidator Damien Grant says he believes two different companies were really operating as one scheme.