Hotchin hits back on website

Former CEO of Hanover Finance Mark Hotchin. Photo / Paul Estcourt

Former Hanover director Mark Hotchin launched a website yesterday attacking what he claims are "wild accusations and continued misinformation" about him in the media.

The website comments on topics about him repeatedly touched on in the news.

These include the multi-million-dollar Paritai Drive mansion owned by a trust associated with Mr Hotchin; his 50th birthday trip to Fiji's Vomo Island resort; and the $1000-a-week allowance he requested from his own assets after they were frozen in December 2009.

Mr Hotchin's public relations spokesman, Carrick Graham, confirmed that the site was legitimate.

"It's somewhere he can put in his responses to various issues that will no doubt be arising in the next few months," Mr Graham said.

It is linked to Mr Hotchin's newly created Twitter account, which is locked to the public but follows a large number of journalists.

In 2008, Hanover Finance, Hanover Capital and United Finance froze $554 million of assets affecting 16,500 investors.

Mr Hotchin, with Hanover co-founder Eric Watson, took $91 million in dividends before the collapse.

However, Mr Hotchin said they put much more than this back into the firm. Investors agreed to a moratorium but were later told payments would not be honoured.

In December 2009, investors were presented with a debt-for-equity deal in which they got Allied Farmers shares (which now trade at 0.8c each) and Allied took over Hanover's loan assets - then valued at $396 million.

Allied has written off about three-quarters of its value and referred alleged irregularities in Hanover's affairs to the Serious Fraud Office.

The SFO is investigating.