Perhaps we should export all our bankrupts

People who flee their debts by going overseas can’t be made to pay up.

Hundreds of New Zealanders facing financial ruin have fled the country, leaving a quarter of a billion dollars in unpaid bills behind them – and they can’t be forced to pay the money.

According to the Ministry of Business, Innovation and Employment, 833 people left New Zealand over the past decade for all points of the globe, where they filed for bankruptcy to dodge compulsory repayments. One such owed $7.5 million.

Figures released under the Official Information Act show that since 2003, $225m debt has been racked up, with just $308,700, or 1.3 per cent, repaid to unsecured creditors.

Labour commerce spokesman Clayton Cosgrove says the magnitude of debt is serious, and is calling on the Government to forge reciprocal deals with countries to claw back money owed and help average Kiwis who have been “done over”.

It would be good to get the money back, although I suspect that you still can’t get blood from a stone, even when it is overseas.   Read more »

Scumbag coward ratbags hiding behind bankruptcy

Scum who hide assets and then go "bankrupt" are parasites

Scum who hide assets and then go “bankrupt” are parasites

People who follow my blog know that I really despise people who take advantage of the vulnerable and those that take someone’s trust and shove it where the sun don’t shine.

Andrew Koubaridis reports on a scumbag lawyer   Read more »

Fairfax go on media charm offensive for Graham McCready

McCready is suffering the consequences of his actions.

Normally people are discharged from bankruptcy after three years but Mr McCready said he was pursuing early release primarily so he could renew his relationship with his two adult daughters – aged 37 and 40 – who both live in Canada and who he has not seen for 20 years.

Bankruptcy prevented him from travelling and was stopping him from getting on with his life.

Far be it from me to deny McCready his insights and regrets, but if he couldn’t be assed to go see them for 20 years, and (my presumption), they haven’t taken the time to come here, I’m afraid that I see this as nothing more than a cynical ploy.

The boy has form – being convicted for blackmail being one of the list of colourful events in his life.   Read more »

Lack of investigation trips up HoS

A couple of weeks go Bevan Hurley wrote a schlock piece about the owner of Blacktop Construction who has fallen on hard times.

Simon Everett has worked every Christmas over the past 15 years resurfacing the Auckland Harbour Bridge.

But this year, he’ll get to spend the holidays at home with his family – he’s just not sure if it’ll be in his own home.

Last month, his world fell apart when Blacktop Construction, the family company he’s built up over 28 years, was placed in receivership.

It’s left this proud, self-made father of two having to ask for handouts to survive.

“A month ago, I was driving a Lexus. Today, I’m driving a motor scooter,” he said this week.

“My wife is about to go to WINZ to ask for some emergency payments for our mortgage. I’m going to be bankrupt, I would say. My brother and sister are in a pretty similar position.”

The lowest moment came when bailiffs showed up at his elderly mother’s home asking for money.

Blacktop found itself squeezed out of the major road maintenance contracts, deals now the subject of a Serious Fraud Office investigation.  Read more »

Aussie union ratbag blows $5 million, but is really sorry

Aussie union ratbag and former Labor president, Michael Williamson, who cried that he was innocent of all charges and it was nothing more than a scurrilous partisan smear campaign finally plead guilty to nicking more than $5 million from his union. But it appears to have blown the lot.

He reckons he is sorry too…not sorry enough to pay back the money that he looted.

I think the only he is sorry about is getting caught.

After pleading guilty last month to defrauding his 50,000-member union, Williamson is awaiting sentence in March for what is likely to be an extended jail stint.

The hunt, in the meantime, is for $5 million that he admits to owing the HSU, his main creditor, in an agreed settlement released a day after his conviction.    Read more »

Dodgy ratbag Forex scamsters in liquidation

The dodgy ratbag forex scamsters Phoenix Forex have gone into liquidation.

We have featured these ratbags extensively on the blog. Unfortunately it appears that many people may well lose their money entirely.

Phoenix Forex, which the Financial Markets Authority issued a warning about in August, has been placed in liquidation.

Foreign exchange software company Phoenix Forex was the New Zealand distributor of the OakFX foreign exchange trading system, which customers paid up to $25,000 to access.

At the end of August, the FMA warned the public about doing business with the Auckland-based company or buying the OakFX system.  Read more »

Government needs to shake up insolvency practice

The NBR had a great article on the weekend about the slow burning Insolvency Practitioners Bill. Written by Murray Tingey, David Friar and Wayne Hofer from Bell Gully it highlights why there needs to be some controls and licensing around insolvency practitioners.

More than two years after the Commerce Committee reported back on the Insolvency Practitioners Bill, Parliament took up the second reading of the Bill on September 26 – the next step in what has been a long and protracted process.

Under the current law, the restrictions on who can be an insolvency practitioner (such as a liquidator or receiver) are limited.  You must be over 18, not bankrupt or subject to the Mental Health Act, not related to the company, and not have a dishonesty conviction in the past 5 years.

There is no requirement that the practitioner have any minimum skills, qualification or experience, or even any requirement that the practitioner live in New Zealand.  There are also difficulties in enforcing the requirements as to who can be an insolvency practitioner.   Read more »

Orsman turns feral on Len Brown

Len Brown

“My rates increases were thiiiis big”

The Herald and Bernard Orsman have dropped a bomb on Len Brown…one that will likely hurt as the race appears to be a lot tighter than Len’s team are claiming from their own internal polling.

Since Len Brown’s first budget in 2011, debt has risen from $3.9 billion and is projected to reach $6.7 billion this financial year – not including the Mayor’s pet $2.86 billion rail loop. Orakei councillor Cameron Brewer says these are huge numbers while mayoral challenger John Palino believes the Super City is being bankrupted.

Soaring debt, hefty rate increases and a blow-out in the wages bill have marked Len Brown’s first term as Mayor and Treasurer of the Super City.

The Herald has opened the books on Mr Brown’s management of the city’s finances and found a pattern of big borrowing, rising staff costs and rates pain for Auckland City, North Shore and Howick households.

Mr Brown insists most Aucklanders are in tune with the “balanced, prudent financial framework”, but critics like main mayoral challenger John Palino believe he is driving the Super City to bankruptcy.

As the person in charge of a $4.5 billion annual budget, Mr Brown says he has shown “guts and vision” to invest in projects to address decades of under-investment and population growth.

He maintains the spending is being done within a low rates scenario, reasonable debt level, prudent financial management guidelines approved by the Auditor-General, the council’s high credit rating of AA and a growing asset base.  Read more »

Opera goes bust, will not bludge any more

Another arts bludger bites the bust…and proves that once again the liberal elites who demand their chosen hobby be funded by other peoples money will always refuse to dip into their own pockets to preserve something they love.

On Saturday night, the New York City Opera performed Anna Nicole, a musical work making its American premiere. In the words of the New York Times, it was about “yes, that Anna Nicole” — the model and reality TV star who died in 2007.

Anna Nicole was the first production of the company’s season, and it received good reviews. It is also, however, likely the opera company’s final production, ever.

The opera company’s closing is a tragedy by itself — the death of an egalitarian institution in profoundly un-egalitarian times. But for those interested in the culture enabled by and built around the Internet, the company’s story also exemplifies the failures of Kickstarter.  Read more »

Taking the Sere-piss-os

Bankrupts aren’t supposed to travel, normally, that is unless you are the supposedly bankrupt Terry Serepisos.

The Official Assignee has failed us, as they often do when confronted by master manipulators, psychopaths and crooks.

Models, international travel and erotically charged parties. Former Wellington property tycoon Terry Serepisos isn’t letting bankruptcy slow him down.

Mr Serepisos has been photographed this month in a high-end Prague hotel and on a horse-drawn carriage with a former Miss Universe NZ contestant.

He has also attended celebrity-studded parties and driven expensive cars, all while technically insolvent. When contacted about his trips yesterday, Mr Serepisos hung up on The Dominion Post.   Read more »