Hubbard on 50 charges

The SFO has announced that the Mr Magoo of New Zealand finance is to face 50 charges.

The Serious Fraud Office has confirmed it has laid 50 charges against failed financier Allan Hubbard.

SFO chief executive Adam Feeley said in a statement just released: “after an exhaustive investigation, we have concluded that there is sufficient evidence to lay fraud charges against Mr Hubbard.”

Feeley said that fifty charges under sections 220, 242 and 260 of the Crimes Act had been laid today in the District Court in Timaru.

The SFO said it did not intend to lay charges against any other current or former director of Aorangi Securities Limited.

This man has cost the taxpayer billions in the collapse of his fancy Ponzi scheme called South Canterbury Finance. It is evident now that the SCF should never have been in the deposit guarantee scheme in the first place.

The pity is he will be long dead before the SFO can sort out its internal mess and even start to prosecute this case.

This case now provides stark contrast with the case of the treatment of Mark Hotchin by the authorities and the media. Mr Magoo cost this country billions because of the guarantee scheme, the depositors all got their money back and now Mr Magoo faces charges. Meanwhile Hanover cost the taxpayers nothing and as a reward for that Mark Hotchin is being victimised by authorities who so far, after looking for many months longer than they have for Hubbard have come up with nothing.

Let’s see the media now go into a frenzy over Hubbard and while they are at it go ask some very pointed questions of the Finance Minister as to why SCF was even in the scheme to start with. It is as clear as the nose on my face that there was material differences between stated positions.

 


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  • michaels

    Wasn’t it Labour that put SCF in the scheme?

  • phronesis

    Is it still a Ponzi scheme if the muppet running it doesn’t understand that is what it is? Hubbard seems to me to just be genuinely stupid which is probably why he also broke the law whereas Hotchin was far more calculating and should not have needed to break any laws to get what he wanted. The problem with the deposit guarantee scheme was that SCF was allowed to increase its deposit holdings and the directors (not the Hubbards at this point) just gave the money away to their friends.

  • cadwallader

    Phronesis:There’s nothing stupid about Hubbard. How can you possibly surmise that Hotchin is “far more calculating?” Hubbard may be in his senior years but he and his coterie stashed away millions for a couple of decades. I can only hope his advisers (lawyers and accountants) are charged too. They all slurped at a giant trough in a quiet corner of this country fully aware of how it was being managed.

    • phronesis

      Hotchin is “far more cal­cu­lat­ing?” because he is unlikely to ever be charged with anything. Those who set out to rip people off usually ensure that they stay within the law while they do so. I agree that plenty of people have made a fortune out of SCF (ForBar associates in particular) but I really doubt that Hubbard has (a bit old to be saving for his retirement) and he is the sole subject of these charges.

      • phronesis

        Interesting…. Can’t mention ForBar on this forum without triggering a moderators flag. Given how most of their ex-clients feel about them I probably shouldn’t be surprised but nevertheless, disappointing.

  • cadwallader

    PS The fact that Hubbard was altruistic with some of his money and had a naive, but wides-spread support from locals, (who have been reimbursed by us all,) does not remove any culpability.

    • phronesis

      I agree.

  • gazzaw

    Expect that Timaruvian pillock to be leading a march of the local citizenry up the main street this week. No wonder the local peasantry love him after he scattered a rain of petty cash at their charities courtesy of the NZ taxpayers. No Timaru investors lost either sop of course he’s a local martyr. He wasn’t genuinely stupid, phronesis and he deserves to stand trial for costing every man, woman & child in this country a fair whack of dollars at a time when we can ill afford it.

    The common theme with all of these high profile multi million frauds & defaults is that we see precious few of the bastards responsible actually doing serious time behind bars. It took the Americans less than a year to put Madoff away for 150 years & yet we see Bridgecorp still years away from prosecution as Petricevich delays, delays and delays. Bryers & Henderson have both done a runner & I’ll bet you that the Nathans boys get off with a bit of home detention should they be found guilty. Whats happening with Lombard? Doug Graham and his fellow directors havent been mentioned in dispatches of late.

  • peterwn

    catwallader – I do not think he used flash expensive lawyers and accountants (apart from his current use of Russell McVeigh). I think he had a Kiwi ‘do it yourself’ attitude and this was half the problem. Once he turned 70 he should have handed more and more donkey work over to others and enjoyed life. He probably used a local Timaru law firm as needed but probably did not use them enough.

    • cadwallader

      Probably twice? He did use both local and larger city advisers. It was the ones closer to home who have pigged out. I did not refer to flash or expensive lawyers…the terms do not necessarily run together.

      • peterwn

        Thanks, so he ought to. But he did not use the right sort of people enough – for example keeping an accurate register of investments – he could have farmed that out to Link up the road in Ashburton. He obviously had a roll top desk mentality to business which while may have been OK early – mid 20th century does not cut it for the 21st Century.

  • thedeityformerlyknownasnigel6888

    I think we may find that a certain Mr Mcleod, that Hubbard trusted as his CEO may also have to share some of the credit for this bloody mess. That said, 50 fraud charges makes it a bit hard to believe the kindly old capitalist story now doesnt it?

    • cadwallader

      Agree think of a few local lawyers/accountants too. The SCF bandwagon has been rollicking towards oblivion for years.

  • phronesis

    I still think it is an interesting question weather fraudsters actually need to understand that is what they are to be culpable of fraud. Those financial advisors that took a commission AND a kickback on advising people to invest in finance companies are clearly criminally stupid but did nothing legally wrong and are not usually recognised as fraudsters. I have some experience of fraudsters and have come to the conclusion that the best ones (like financial advisors and I contend, Hubbard) are convincing because they actually believe their own crap.

  • giblet

    Anyone else noticed how Hubbard looks exactly like Mrs Doubtfire?

  • Ministry of Justice

    50 charges ay?
    Let’s wait and see if there is any substance to any of them.

    Perhaps even wait to hear Hubbard’s side of the story.

    • Why would we do that. The media climbed in over Hotchin, there was no waiting to see his side of the story, and the fact remains that Hotchin hasn’t cost the taxpayers a single cent whereas Hubbard’s bumbling and fumbling and giving away other peoples money has cost us over a billion.

      The man may be addled but he sure as hell is culpable.

      • Ministry of Justice

        The government gave a guarantee at the expense of the tax payers.
        His business lost money.
        It cost the tax payers over a billion dollars.

        The government guarantee was a stupid idea and now we are paying for it – the SFO is not alleging fraud regarding his dealings with the government guarantee scheme.

        The government is responsible for tax payers’ billion dollar loss.

        • Oh yeah…SCF was in the deposit scheme under false pretenses…these frauds don’t manifest instantly, they develop over time. I would bet that they were going on when SCF was admitted to the scheme.

          From you whininess I would guess you are one of the bewildered who thinks Hubbard is a honest man who did much good for his community. He did that goo of course with stolen and defrauded money, he bought the affections of a community and he ripped off the taxpayers with his ponzi scheme.

          • Ministry of Justice

            Is Hubbard being charged regarding defrauding the deposit scheme?

  • Ministry of Justice

    What about this false statement from SFO chief executive Adam Feeley – “Whatever the public may think, in considering whether serious fraud has been committed, the motives or lifestyle of an alleged offender are ultimately irrelevant.”

    Motives are fundamental with respect to fraud.

    If there’s no intent to deceive then it’s not fraud.

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