Broker's position under review

Mortgages by Design, the brokerage business of Suzanne Tierney. Photo / Janna Dixon

High-profile broker Suzanne Tierney's positions as president of the Auckland Property Investors Association and board member of the New Zealand Mortgage Brokers Association are being reviewed.

After losing a court battle over money owed to a former contractor of Tierney's prominent brokerage business, Mortgages By Design, Tierney liquidated her company and created a new one under the same name.

Liquidator Lloyd Hayward says the company's debts were "mostly to the principal [Tierney] - essentially capital". The liquidator's report says that it is unlikely any payments will be made to creditors, which means the court-ordered debt will probably remain unpaid.

Meanwhile the new Mortgages By Design continues to operate the same business under the same company structure.

Tierney says: "This is a conflict that we have spent many years trying to mediate. At all times I have acted legally, ethically and in the best interests of all stakeholders."

Another former contractor of Mortgages by Design, Colleen Abbott, says she is also owed money by the business, which she says is unable to be recovered now.

Abbott says she is owed around $40,000 by Mortgages by Design in commissions paid by banks to the company's trust account, in turn to be paid to Abbott.

She says Mortgages by Design retained her commissions when she left to join another firm, leaving her significantly out of pocket.

"She's on the board of the New Zealand Mortgage Brokers Association, making decisions, and her mortgage company has been liquidated," Abbott says.

It is understood from a source at the Auckland Property Investors Association that the board is holding a meeting tomorrow to review Tierney's presidency, following complaints from members who have called for her resignation. Board member Chris Marston confirmed that a meeting is being held.

Ron Hoy Fong, a member of the association and former board member, says: "The property investors association president is in a position of leadership and trust. When they do something that is very grey, I believe they should reconsider their leadership position.

"I just hope there is a change in leadership."

The association's principal sponsor is ANZ bank, but ANZ's Craig Moffat says: "If the board and the association have issues with its leadership, it is a matter for them."

The New Zealand Mortgage Brokers Association board is also meeting to review Tierney's board membership, says chairman Darren Pratley.

"We have a concern and are investigating what has happened but we can't make any comment until we have gone through that process."

Directorships

Suzanne Tierney lives in Auckland's St Mary's Bay. She is the sole director of:

* Gulf Retreats
* Mihakis Properties
* Insurances By Design
* MBD Services
* Mortgages by design
* Tierney is also a director of Ponsonby Angels.