SFO announces SCF now under investigation
October 19th, 2010 at 9:55 am by David FarrarThis will upset the cultists. The SFO has announced:
The Serious Fraud Office (SFO) today announced that it had launched an investigation into South Canterbury Finance (SCF).
Chief Executive, Adam Feeley, said that as a result of inquiries made by its newly established Fraud Detection Unit, the SFO had grounds to suspect that a number of related party transactions involving SCF may have involved false statements or other fraudulent conduct.
“Given the scale of the SCF collapse, it would be neither feasible nor productive for SFO to carry out an investigation into all aspects of the failure. Instead we will focus on specific transactions which we consider may have been a fraud on the investors in SCF and/or the Crown as the guarantor of investor funds.”
Mr Feeley said that despite the volume of cases which SFO had taken up in recent months, the matter was one which would have a high priority and would be progressed as quickly as possible.
Also of interest:
Mr Feeley added that the SCF investigation was an entirely separate matter from the SFO’s investigation into the affairs of Aorangi Securities Limited.
“While there are some persons who are common to both cases, the SCF transactions we are currently investigating have no material connection with the affairs of Aorangi Securities.
Mr Feeley added that, subject to receiving any new information from the statutory managers, the SFO was in the closing stages of its investigation into Aorangi Securities.
Until their investigations are complete, it is hard to comment in great detail. But
Related posts:
- SFO alleges $1.7b fraud with South Canterbury Finance
- The Hubbard charges
- Allan Hubbard
- SFO launches investigation
October 19th, 2010 at 9:59 am
The Serious Fraud Office wasn’t about detecting fraud in the past?
The what on Earth were we paying them for?
Vote:October 19th, 2010 at 10:16 am
Goodness knows Graeme but they didn’t seem to have a great strike rate prosecuting fraud either!
As you say DPF no doubt there will be great angst at this investigation in accordance with the rule of law.
Vote:October 19th, 2010 at 10:23 am
“Then what on Earth were we paying them for?”
To investigate allegations of serious fraud. Just like the homicide unit doesn’t have their own cars patrolling the street or their own people answering 111 calls, the SFO gets called in to investigate and prosecute when a crime is thought to have happened.
Not unreasonable if you have reasonable expectations.
Vote:October 19th, 2010 at 10:54 am
To investigate allegations of serious fraud. Just like the homicide unit doesn’t have their own cars patrolling the street or their own people answering 111 calls, the SFO gets called in to investigate and prosecute when a crime is thought to have happened.
A perfectly reasonable answer. So perhaps you can tell me: ‘why they are trying to detect fraud now?’.
Vote:October 19th, 2010 at 11:01 am
A perfectly reasonable answer. So perhaps you can tell me: ‘why they are trying to detect fraud now?’.
……………………………………………………………………………..
Because about 12 months ago they were nearly disbanded and put back under the control of the police so now they are desperate to prove that they are indispensible and will as a government department grow like topsey.
A few good detectives and forensic accountants under the police umbrella can do the job, seeing as they are staffed by a few good ex- detectives and forensic accountants
Vote:October 19th, 2010 at 11:50 am
“So perhaps you can tell me: ‘why they are trying to detect fraud now?’.”
A reasonable question. Maybe because since the GFC there has been political pressure to stop being the ambulance at the bottom of the cliff.
Vote:October 19th, 2010 at 11:56 am
Good news for Allan Hubbard who had no input in the running of this company when the decisions that broke it were made.
Vote:October 19th, 2010 at 12:05 pm
I dont think that is true, Tinman, though I am sure thats what his supporters will believe not matter regardless.
In any case, it isnt the bad business decisions that the SFO will investigate, it is the decisions and disclosures around related-party transactions (something Hubbard is infamous for).
Vote:October 19th, 2010 at 12:22 pm
Agreed MT_Tinman. Seems Lachie McLeod just doesn’t make any headlines at all.
I’ll buy the book when the dust has settled. Will make a bloody interesting read, I wonder who is working on it…
Vote:October 19th, 2010 at 8:35 pm
Weird that this post went up at 9:55am and there are only 9 comments.
Do all the righties who normally fill the comments threads here sympathise with white collar crooks who rort their investors and the taxpayers?
Vote:October 19th, 2010 at 9:28 pm
Go check out the other threads, toad. There are some people that support Hubbard, but more who dont.
Vote:October 19th, 2010 at 9:47 pm
@toad
People are sick of hearing about inquiries and investigations being announced. What they want to hear about are the results of said investigations. Hopefully these organisations are up to the task.
Vote:October 19th, 2010 at 9:53 pm
Toad: Think this post was somehow lost – I have been reading kiwiblog both on RSS and the site and only saw this one on RSS just now.
But V is right – it’s just another brick in the wall, another step on the road.
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