Scammed businessman now bankrupt

An application made by the Southland Building Society, which was owed about $200,000, was granted. Photo / File

A Napier businessman's hopes of financing his way out of debt with riches promised in an apparent scam has run out of time and he has been made bankrupt.

The order against Barry Barton-Ginger was made in the High Court in Napier yesterday.

An application made by the Southland Building Society, which was owed about $200,000, was granted.

At a previous hearing, amid claims of a new wealth from the UK supported by what the SBS lawyer suspected were scam emails, Mr Barton-Ginger had been given until this week to pay the debt.

The emails had promised Mr Barton-Ginger a bequest of $36 million, but it had been on hold pending his payment of what was purported to be a tax requirement of more than $28,000 in the UK.

The SBS doubts were highlighted in the court last month when society counsel Simon Scannell suggested Mr Barton-Ginger take more notice of the email addresses from which emails related to the "bequest" and the tax requirement had come, and that they weren't those used by British government or agencies.

Summarising events yesterday, Associate Judge Warwick Smith said that with no money having arrived Mr Barton-Ginger sought to have the matter settled by an arrangement with a third party, to pay by April 10.

But the Judge was told by SBS counsel Simon Scannell that the building society "does not have confidence in that party", and was going ahead with the application.

Neither the SBS nor the judge was prepared to defer matters any longer and bankruptcy was declared.

Associate Judge Smith said Mr Barton-Ginger appeared to be the victim of "some sort of scam" and there wasn't any prospect of the money "coming through" from the UK.

He said Mr Barton-Ginger had had ample time to pay the debt or reach a method of settlement acceptable to the creditor. But it appeared he was insolvent and was unable to pay.