SFO probes Christchurch companies

By Susie Nordqvist

Serious Fraud Office chief executive Adam Feeley.
Photo / Dean Purcell
Serious Fraud Office chief executive Adam Feeley. Photo / Dean Purcell

Two companies owned by bankrupt Christchurch property developer David Henderson are being investigated amid allegations of misrepresentation.

The Serious Fraud Office announced today it was investigating allegations that Property Ventures Ltd and Cashel Ventures Ltd may have made misrepresentations to South Canterbury Finance and Dominion Finance Group, in order to secure funding.

SFO chief executive Adam Feeley said the office's focus was to determine the nature of the funding advanced and the statements that were made in order to secure that funding.

Property Ventures Ltd was placed in receivership in March last year, while Cashel Ventures Limited went into liquidation last December.

Both companies were associated with the development of Hotel So in Christchurch, which was the brainchild of property developer David Henderson.

Hotel So went into receivership last June.

Feeley said the February earthquake had created difficulties in recovering some records.

"Our first priority will be to work with relevant parties, including the receivers and liquidators, to identify where pertinent records are held.

"In this regard we are fortunate to already have records from South Canterbury Finance and Dominion Finance Group which will enable us to identify any material inconsistencies between the funding and borrowing parties."

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