Nature Green was put into liquidation in July 2012 and creditors are deciding whether they can afford the $150,000 bill to sue Mr Knight and Mr Massey. Mr Petterson said he believed the creditors had a case to sue for reckless trading and trading while insolvent and were owed $1.7 million.
“What I would like to see is the liquidator put forward some hard facts and file for court action. Let’s get this sorted out once and for all instead of leaking selective emails to the media,” Mr Massey said. Read more »
Georgina Bond has an article at NBR about dodgy liquidators. I can tell you that from a recent investigation that the activities of numerous liquidators have come to my attention. I agree with Georgina that something needs to be done to rein in the predations of these rapacious liquidators.
The theft conviction of Nelson liquidator Pat Norris demonstrates why the laws regulating insolvency practitioners need reform, lawyers suggest.
Patrick Dean Norris, 55, is perhaps best remembered for the lurid headlines of two years ago when he made intimate recordings of his ex-wife and put Pink Batts in her underwear drawer.
Last week, the former Kawerau mayoral candidate was found guilty of theft by a person in a special relationship after a two-week, judge-alone trial at Nelson District Court.
Norris will be sentenced later this month.
The conviction relates to allegations he banked $80,900 from the liquidation of Auckland-based Astra Enterprises into the trading account of his company Norris Management Services and used the money for personal and business expenses.
The Crown said there was no evidence any creditors of Astra Enterprises had been paid.
Judge Michael Behrens QC found Norris “engaged in a blatantly dishonest course of action” – instructing his staff to create invoices for an amount to cover at least $80,000 after the Companies Office visited to inspect the Astra file.
Norris, who represented himself at the trial, has indicated he is likely to appeal the decision.
One lawyer I spoke to recently told me of one liquidator whose modus operandi is basically stand over where they confront directors, lawyers, accountants essentially who ever they identify as a potential target and demand cash/assets/recompense for turning a blind eye, and failure to do so will result in them visiting the Police to lay a complaint.
[I]t is Bell Gully’s view a person convicted of a dishonesty offence should not be permitted to act again as a liquidator of a company.
“This is particularly so where the dishonesty occurred in the course of a liquidation, such as here, where Norris stole funds from the company and its creditors,” Mr Tingey says.
The Insolvency Practitioners Bill, before Parliament, would redress this by disqualifying any person convicted of a crime involving dishonesty from being a registered insolvency practitioner, unless the court orders otherwise.
Yet there will still be deficiencies, Mr Tingey says.
“The bill only introduces a negative licensing regime, excluding people from acting as a liquidator if they are disqualified in some way. It does not introduce a positive licensing regime, requiring minimum qualifications for an individual to act as a liquidator.
“As a result, it would not appear to prohibit someone such as Mr Churchill from acting as a liquidator. Indeed, it would appear to allow Mr Churchill to register and hold himself out as a registered insolvency practitioner,” Mr Tingey says.
“The label ‘registered insolvency practitioner’ implies that the practitioner meets a minimum standard of proficiency, when he or she may not be qualified at all.”
The Norris case illustrates why the bill should contain a positive licensing regime, with minimum standards for individuals to be able to hold themselves out as registered insolvency practitioners, he says.
It is real wild west stuff out there. As I said I have come across numerous examples since picking the scab off the industry. There is a real rapaciousness out there and I have seen evidence where company directors with relatively small cashflow issues have been picked clean after seeking restructuring and insolvency advices from the cowboy operators.
Tomorrow I will be breaking a large story concerning a multi-million dollar fraud, bankrupts, lawyers, rogue directors, phoenix companies, liquidators, deception, theft, stand over, bullying, abusive correspondence, extortion, ripping off of multiple charities, missing assets, false documents, duplicate sale and purchase agreements, and “aggrieved” franchisees, private investigators, an alleged Yakuza hitman, false allegations to the SFO and a compromised Official Assignee staff member.
On top of all that I will be revealing which media personalities have had articles ghost-written by some of the players involved and the shameless involvement of lawyers and public spokespeople in manufacturing stories against other public figures.
Not to mention Current Affairs programmes who don’t return calls and refuse to look at evidence.
Who is “Sexy Boy”? And is he the same as “Pearhead”?
What was “Operation Kite”?
What was “the compromise”?
Where is the Maserati, the M5, the Ducati, the boats, the digger and the trucks?
Who is “Weeman”?
What do “McMillions” and “Lum” have against their business partner and why do they want to throw him under the bus?
This will be the flip side of everything you have ever read about this whole little nest of nasties.
I have the documents, I have the emails, I have the files and I have the hard drives and I have the databases. I will slowly but surely reveal everything and I will use as few of my own words as possible and instead use the words from the very emails of the people involved.
There is going to be hell to pay.