Finance swoop

Officials found records from failed chain Jean Jones. Photo / NZ Herald

Officials from the Insolvency and Trustee Service have swooped on a group of companies related to failed Gisborne finance firm Rockforte Finance, seizing documents and interviewing key directors.

Following petitions from the Inland Revenue Department the Hamilton Official Assignee was appointed liquidator of seven companies connected with Rockforte's directors on Wednesday.

In co-operation with the receiver of Rockforte, the OA's team entered the finance company's premises to secure computers and records.

The Serious Fraud Office and the Securities Commission are investigating Rockforte over alleged misappropriation of investors' funds.

Last month the Herald on Sunday revealed that the SFO had uncovered a $10 million money-go-round surrounding Rockforte Finance, when the financier had depositors' funds of only $3 million.

One of the issues is large amounts of related-party lending and unauthorised transactions involving the group of companies linked to the directors - accountant Nigel O'Leary, Rockforte's manager Colin Simpson and car dealer John Gardner.

Official Assignee Les Currie said the history of the companies and individuals warranted the operation. The OA was working closely with receivers Indepth Forensic.

The receivers were surprised when this week's swoop also uncovered records and leftover stock from the failures of womenswear chain Jean Jones and surfwear retailer New Wave.

Previously undiscovered bank statements and other documents, computers and racks of clothes were found in the basement.

O'Leary and Gardner ran Jean Jones, while New Wave is owned by O'Leary's daughter and son-in-law. Both chains collapsed last year.

The companies placed in liquidation this week are: Forin Investments; Peseta Holdings; Rego Investments; Gisborne Mortgage and Finance; Auto Court Holdings; Gisborne Auto Court Service Centre; Rockforte Finance.