Blue Chip victims hope for some redress

Mark Bryers was sentenced to 75 hours of community service. Photo / Herald on Sunday

Two very important announcements are looming which might yet see some form of justice for investors who lost their savings investing in the Blue Chip schemes of bankrupt businessman Mark Bryers.

The Serious Fraud Office is expected to announce this month whether charges will be laid against any of those involved in promoting or running the Blue Chip schemes.

And the liquidator of the Blue Chip companies is also expected to announce whether funding has been found to take legal action against the directors of the failed companies.

More than 3000 Kiwi investors lost more than $80 million when the Blue Chip group of companies collapsed. Bryers has been bankrupted owing $230 million, banned as a director for five years and sentenced to 75 hours' community service on minor record-keeping charges.

But investors are not satisfied, with many demanding jail time and some who say they feel they want to kill him.

SFO boss Adam Feeley says the investigation is in its final stages and an announcement is expected this month.

In July the agency said it had gone as far as it could in investigating Blue Chip and was seeking the help of a lawyer who has led the charge for hundreds of victims of the failed investment schemes.

Barrister Paul Dale has since had several meetings with the SFO.

Meanwhile, liquidator Jeff Meltzer has just issued the latest liquidation statements for the slew of collapsed Blue Chip companies. The reports stated a Queen's Counsel had found a range of options to pursue the directors - but that "the liquidators need to obtain funding".

Investors' hopes of getting money back rested on the liquidators getting enough money to "issue proceedings against the directors and others", the report said.

However, the funding was "uncertain" and the lawsuits would take a long time. Meltzer says he expects to tell investors whether funding is available by the end of the month.

The report also stated not all Blue Chip companies would be sued and which they would be would only be identified if the money is found for lawsuits. Only investors owed money by those companies had any hope of getting anything out of the case.

Meltzer said he was aware of criticism over the speed at which the liquidators had moved and the tactics they had used. "The criticism is wrong. I have one goal and that is to maximise the return to the investors."

Meltzer said he was aware the criticism had extended to speculation a legal move would take place to try and remove him as liquidator.