Business Insider: Biting the hand - satire or insanity?

Paul Rose speaks to his lawyer outside the Auckland High Court on fraud charges against Mighty River Power. Photo / Jason Oxenham

If biting the hand that feeds is irrational, then biting the hand that can hit back must rate as insanity.

Business Insider mused on this when coming across an advance copy of Waterstone Insolvency's newsletter, Waterline.

The latest periodical from the Auckland liquidators contains a mock interview with Financial Markets Authority boss "Bob Everest" - a not very thinly veiled reference to the regulator's chief executive, Rob Everett.

The unbylined parody castigates the FMA for its registration of financial advisers, an area where the firm has previously criticised the market watchdog.

Although Business Insider doesn't share the writer's severe views, nor agree that the FMA registers "a lot of conmen", he can understand why someone could have criticisms.

The FMA has taken a mere handful of advisers to the Financial Advisers Disciplinary Committee since it heard its first case in August 2013.

In fact, it has been almost two years since an adviser appeared before that disciplinary body, which deals with complaints about breaches of the code of professional conduct.

But Business Insider can't help but wonder whether Waterline could do Waterstone more harm than good by taking such an extreme stance.

And given the powers the market watchdog has at its disposal, Business Insider would think it's better not to pick fights with its chief executive.

Courtney Barnett was scheduled to play at the Echo Festival. Photo / Getty Images

Fading echoes

International and local musicians who were paid deposits to play at the ill-fated Echo Festival will get to keep the money, despite liquidators thinking a judge would order them to repay the funds.

The two-day Auckland event - originally planned for McLaren Falls near Tauranga, before consent issues forced it to move - was axed last November, leaving music fans out of pocket.

It was confirmed this month that ticket holders would get nothing back.

The liquidators, Simon Dalton and Matthew Kemp, will also be getting nothing back from international artists such as Jamie XX, Courtney Barnett and The Flaming Lips, nor from local talent Marlon Williams and David Dallas.

The pair wrote to these and other musicians this year, seeking repayment of thousands of dollars of fees paid up front.

None of those contacted, however, have repaid the money.

"The liquidators have taken legal advice on the issue, and consider it is likely that a court would rule that the amounts are repayable. Notwithstanding this, the estimated cost of pursuing recovery of these claims through court exceeds the likely recoverable amount, as such, the liquidators intended to take no further action to recover these amounts," said Dalton and Kemp.

Medico's mishap

A doctor who says he was duped into directing two companies by a convicted criminal has failed in a last-ditch attempt to escape punishment.

In 2010, Gerald Waters went into business with his flatmate, Jonathan Mann. Mann was interested in creating a muscle balm, but told Waters he could not launch the venture because he was banned from being a director of a company.

That ban was the result of his conviction in 2007 for dishonesty offending.

Waters invested $140,000 in the project and in 2011 agreed to direct two firms which Mann later admitted managing.

It was this which put Waters in hot water and led to him being convicted for being party to an offence under the Companies Act. He was fined $4000.

Waters' subsequent appeal to the High Court was declined and a further bid to challenge his conviction was refused in 2014.

More than a year later, Waters made an application for special leave to take his case to the Court of Appeal.

However, Justices Ellen France, Patrick Keane and Robert Dobson were of the view that this had no real prospect of success.

They also said, when rejecting the doctor's bid this month, that he had not provided any satisfactory explanation for why it had taken him so long to seek the special leave.

Mighty River fraudster's future hangs in the balance

The question of whether Mighty River Power fraudster Paul Rose will go to prison has been put off for a month while the prosecution and defence spar over whether the now publicly listed energy company suffered any loss from his offending.

A former engineer at the company's Southdown power station, Rose was found guilty in March of obtaining by deception.

Rose, according to the Serious Fraud Office, set up companies in his wife's name to conceal his interest in the firms.

He then used these companies to invoice Mighty River for goods and services and did not declare the conflict of interest.

Although he acted on his own at first, he later had the assistance of his wife Jane, who was also convicted last month.

The pair were due to be sentenced on Thursday but this was delayed for some four weeks.

Business Insider understands this was because of a dispute over just how much loss, if any, their offending caused Mighty River.

Both the SFO and defence are due to provide more submissions on this point before the Roses appear back before the High Court on May 25.

Although imprisonment is unlikely for Jane Rose, Justice Rebecca Edwards has indicated it is a possibility for her ex-husband.