Investor plea for Hubbard funds release

Photo / Sarah Ivey

A letter from 71 investors in two frozen financial entities associated with embattled Timaru businessman Allan Hubbard and his wife Jean has been sent to Commerce Minister Simon Power urging the end to statutory management.

The letter was written by Christchurch businessman and fellow investor Tony Brazier on behalf of the group.

It requests that Power terminate the statutory management recently placed on Aorangi Securities and Hubbard Management Funds - two of nine entities frozen on June 20 following a recommendation by the Securities Commission.

Wellington lawyer Mei Chen said her firm advised Brazier in the writing of the letter.

In the letter Brazier writes: "We understand from Mr Hubbard that the Serious Fraud Office investigations to date have not found any evidence of fraud, and are unlikely to. Provided that the Serious Fraud Office and the statutory managers find no evidence of criminal activity, we consider that statutory management is no longer justified and should be removed as soon as possible."

He also wrote that investors were now confident that no fraudulent or misleading behaviour had been undertaken by Hubbard and his wife.

"Changes implemented by the statutory managers have removed any possibility that our investments are at risk due to inadequate bookkeeping and documentation," he wrote.

Brazier told the Herald that many of his fellow investors were experiencing great hardship as a result of the statutory management - especially elderly ones. Many of the investors, he said, relied on interest payments for their survival.

"The statutory management is meant as a last resort and not as a first option," Brazier said. "There are other processes that could have been taken."