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A dying cancer sufferer who approached finance company Capital+Merchant to have his investments refunded shortly before the company collapsed was refused and told his money was safe.
But just a few days later, the 72-year-old father of three received news that the $100,000 he had tied up in
the company was unlikely to be seen again.
The retired Auckland man, whom the Herald agreed not to name, has bowel cancer and has been told he has about six months to live.
Armed with the hospital diagnosis that he has terminal cancer, he approached Capital+Merchant Finance to have his two term investments worth $100,000 refunded.
"But they told me my situation wasn't serious enough. I thought, 'I've got cancer. What do you have to do?' "
The firm told him to write to a committee that would review his situation. He was later told his request had been declined.
Not long after, he received a letter in which Capital+Merchant outlined a "major step forward in the security we offer our investors", which he thought secured his finances and his family's future.
"It simply said in summary they had increased their insurance coverage on all mortgage securities. It also said the capital secured debenture investments were 100 per cent insured and they could presuppose there would be no loss to investors in the capital secured debenture fund."
The man told the Herald he had no reason to doubt his money, which he planned to reinvest for his wife, was in danger at the time.
But little more than a week later he was among the 7000 debenture investors with about $165 million in the company who received news of Capital+Merchant's collapse.
"I took a deep breath. It takes a bit to get over these things and when they happen you don't quite know what to do," he said.
"I was just bitterly disappointed. It's happened to other investors, not just us, but these people showed absolutely no compassion and I think the way they've treated their investors was appalling."
His calls to Capital+ Merchant have since gone unanswered and with his death imminent the man is resigned to the fact he or his wife may never see their money again.
"Some people hit death with their financial affairs in a mess but I thought my wife would have no worries with this portfolio."
* Have you been affected by a finance company collapse? Contact us at newsdesk@nzherald.co.nz
