Hawke's Bay loan scandal spreads to Britain

5:45 pm - By REGAN HORRELL

A British financier who promised to raise more than $5 million in loans for two Hawke's Bay businesses is now being sued by an English businessman.

Devon-based businessman Roger Barton is taking civil court action in England for thousands of pounds against the senior director of Euro Consultants International Ltd (ECI) Ron Bellamy.

Mr Bellamy, of Dorset, was contracted to raise $2 million for the Hastings tertiary campus World School New Zealand and $3.5 million for former Hastings motelier Ray Maultsaid.

The World School is still waiting for the money. The campus was only open a month before closing in February leaving staff and creditors unpaid.

Mr Maultsaid wanted the $3.5 million loan to buy a resthome in Auckland.

Both businesses, after paying thousands of dollars in upfront fees, were promised the money by November last year, but several deadlines have come and gone without the arrival of any funds.

Mr Barton, who runs a company called Integrated Development Projects Ltd, said his legal action relates to dealings with Mr Bellamy as a sole trader operating under the name of ECI in May, 1998.

He is seeking up to £15,000 based on an alleged breach of contract and about £2500 for a return of fees for money paid for financial brokerage services.

Mr Bellamy was contracted to raise the equity and debt finance worth £45 million for sustainable development and renewable energy projects. The first phase amounted to £700,000.

In an email to the Hawke's Bay Today newspaper this week, Mr Bellamy said he would "vigorously" defend the allegations.

"We are in no doubt that we will win the case." Mr Barton believed Mr Bellamy and his company had made similar dealings to raise loans with people throughout the world.

The ECI company was dissolved as at February 27 this year, according to the Companies House for England and Wales website.

"So most of the complainants in New Zealand will not get their money back," Mr Barton claimed. He also alleged ECI had two county court judgment rulings against the company both of which remain unpaid as of October last year.

Mr Bellamy refused to comment on those claims and questions from Hawke's Bay Today on whether upfront fees would be repaid to businesses promised loans.

"Any comment from me on any other allegations would be imprudent in light of the legalities pending."

Mr Maultsaid is also considering taking a class action with a number of other New Zealanders waiting on loans from ECI against Mr Bellamy.

In a letter to Mr Maultsaid, Mr Bellamy said the company was still having "problems" with their investors but was working daily to ensure the loans were raised. "Rest assured it will happen."

- HAWKE'S BAY TODAY