Blue Chip founder's girlfriend tells of deal

Bob Bangerter. Photo / Paul Estcourt

The girlfriend of a Blue Chip co-founder told the High Court yesterday that she and other staff were lured into buying apartments to help meet targets as the group faced collapse.

Maree Aitkenhead gave evidence in the case of 34 Blue Chip victims who are trying to recover some of their losses. The cases are representative of another 220 investors.

Three property development companies are demanding that the investors buy apartments in four central Auckland buildings as a result of their investment in Blue Chip products.

In the unusual "joint ventures" and "premium income products", investors signed sale and purchase agreements for the yet-to-be built apartments. Blue Chip told them it would take care of the mortgage payments and would buy the properties on completion of the investment, returning the investors' initial deposits.

The scheme collapsed in February last year, and the developers say the investors are liable for the properties.

But the investors say the deals are void and the deposits should be returned. Most will lose their homes if their case is unsuccessful.

One of these investors is Ms Aitkenhead, who was executive assistant to her partner, Bob Bangerter, in Blue Chip's Parnell office.

Mr Bangerter developed the property investment idea, and sold the concept to Blue Chip co-founder Mark Bryers, she said. In late 2007, Mr Bangerter came to her with three sale and purchase agreements to sign so she could be in on an opportunity that had been offered to other staff.

"Bob advised that the staff there were getting excited about earning some extra money before Christmas by means of a promotion head office was promoting," she told the court.

Her understanding was that the deals were needed so the developer could complete its pre-sales target for the planned Icon apartment building in St Martins Lane.

An underwriting fee was payable once that target was achieved, and "every person would receive a part of that fee for assisting in getting the development under way".

The apartments would then be sold to Blue Chip clients. "I was told by Bob that I would not be required to settle on these properties."

He had signed three of the agreements himself, she said.

The deposits were to be borrowed through the Home Bonds service under a deal Mr Bryers told staff he had done for them.

But Home Bonds said the couple's financial position was "too tight" and it would not advance the deposits.

Ms Aitkenhead thought that was the end of the deals. "I assumed that because Mr Bryers was effectively the vendor he had cancelled them."

She was then "mortified" to see a schedule a month after Blue Chip collapsed listing the six agreements for sale and purchase, and showing that 10 per cent deposits had been paid on them.

Mr Bangerter was bankrupted last month after businessman Bob Jones' company sought $398,000 in unpaid rent on Blue Chip's Queen St premises.

He also faces charges alleging breaches of the Companies Act.