SFO to resume Hubbard inquiry

Photo / Sarah Ivey

The Serious Fraud Office is ready to resume discussions with South Island businessman Allan Hubbard after his lawyers received $1 million in fees.

The SFO put the brakes on an investigation into Mr Hubbard's affairs while his lawyers Russell McVeagh fought for money to represent him.

The High Court at Wellington ruled in March that Mr Hubbard's statutory managers should pay the legal bill from the Hubbard assets they controlled.

The sum of $1 million was paid on Monday to Russell McVeagh.

SFO chief executive Adam Feeley told the Herald yesterday that he understood the legal representation issue was largely resolved, clearing the way for discussions to resume.

"Discussions are imminent," he said.

"It is my hope at the end of that we will be in position to make a decision on the matter."

The SFO began its investigation last June after Mr Hubbard and a number of his companies were put into statutory management.

South Canterbury Finance, which Mr Hubbard founded, was not part of the investigation.

In the High Court at Wellington, Justice Lester Chisholm said it was imperative that Mr Hubbard and his wife Jean had legal representation during the SFO investigation.

Mr Feeley said the SFO would not comment on the scope of its inquiries.