FMA warns Chance Voight investors over Bernard Whimp payment requests

The FMA says investors should fully inform themselves before providing funds to Bernard Whimp.

The Financial Markets Authority is recommending that investors in Rangiora-based investment company Chance Voight “fully inform” themselves before providing further funds to Bernard Whimp or any Chance Voight-related person or entity.

The authority’s head of enforcement, Margot Gatland, said: “The FMA understands Mr Whimp has recently contacted Chance Voight investors about the interim liquidation and has, amongst other things, sought payments which he has described as donations to fund legal expenses.

“The Financial Markets Authority (FMA) recommends that investors fully inform themselves before providing any funds to Mr Whimp. Those with any queries about their investments (including any communications received from Mr Whimp) should speak with the interim liquidators and seek independent advice from a lawyer or a financial adviser.”

Gatland confirmed the FMA had asked the High Court to place Chance Voight Investment Corporation Limited (CVICL) and a number of related companies into liquidation.

She said this was because the FMA considered there was reason to believe they may be insolvent.

Gatland added the affairs of the group may have been conducted in a manner that breaches provisions of the Companies Act 1993, and that Chance Voight group companies and their director, Whimp, may have breached the Financial Markets Conduct Act 2013 and other financial markets legislation.

Before seeking court orders, the FMA corresponded with Whimp regarding various aspects of the Chance Voight business over a number of months and had issued Chance Voight with four compulsory information request notices under section 25 of the Financial Markets Authority Act 2011.

Among other things, the notices sought accounting and financial records.

The FMA was not satisfied with the responses.

Based on the information it obtained, including details about the business provided by Whimp, the FMA formed the view that the group may be insolvent and may be in breach of the legislation.

The court will hear the FMA’s liquidation application at a date to be confirmed.

Pending the resolution of the FMA’s liquidation application, the court has appointed interim liquidators to CVICL and several related companies at the FMA’s request.

The court initially restricted publication of the reasons for its decision to appoint the interim liquidators. The restriction on publication has now been lifted, subject to continuing suppression of some parts of the decision.

The role of the interim liquidators is to investigate the affairs of the companies and to maintain and preserve their assets pending the court hearing the liquidation application in the new year.

In addition to appointing the interim liquidators, the court has also granted the FMA’s application for interim asset preservation orders against Whimp and a subsidiary of CVICL named Hanmer Equities Ltd.

The asset preservation orders were sought to protect assets pending the outcome of the FMA’s ongoing investigation into Chance Voight.

Last week, Patterson Wealth founder Craig Patterson said he had re-taken control of the company from Chance Voight.

In a short statement issued through his solicitors, Patterson said he had exercised his rights to take back possession of all of the shares on issue in Patterson Wealth Partners.

“Accordingly, Patterson Wealth Partners is once again wholly owned by its founder and is no longer a part of, and is not in any way associated with, the Chance Voight group of companies.”

Whimp has a history of making “low-ball” offers to investors with small parcels of shares in listed companies.

In 2011, the High Court ordered the cancellation of any agreements made to sell shares to Whimp after legal action from the FMA.

The court ordered shares transferred to Whimp to be returned and also made orders preventing him from making any further offers of this kind.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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