Jonathan Mathias, the Auckland lawyer found wanting over his advice to Blue Chip victims Bruce and Judy Bartle, is bankrupt.
Last week in the High Court Justice Tony Randerson ruled that Mathias failed in his duty of care to the Whangarei pensioners by not pointing out the obvious risks ofthe investment scheme to them.
He said Mathias conveyed a "very misleading impression" of the Blue Chip joint venture agreement, including not making it clear that it involved the couple borrowing significantly more than their home was worth.
The next day in the same court Mathias was judged bankrupt over a debt of $693,000 to the Inland Revenue Department.
Mathias was recommended by Blue Chip and acted for over 150 investors in the scheme.
His certificate to practise as a lawyer expired in June this year and has not been renewed.
The barrister who represented the Bartles, Paul Dale, said he intended to seek compensation for his clients of around $400,000 as Mathias was likely to have professional indemnity insurance. However the lawyer faced many other similar claims from out-of-pocket Blue Chip investors and there was unlikely to be enough to go round.
