Gems seized from failed Tauranga company Hot Ice International seem likely to sell for a fraction of their value, making it even more improbable that investors in the pyramid scheme will recoup their losses.
Court-appointed liquidator Thomas Rodewald, of Rodewald Hart and Associates, said yesterday that interest in the gems -
officially valued at tens of thousands of dollars - had attracted just one bid, of $1500.
"Poor quality seems to be the main reason," he said. "We may just have to take what we can get for them.
"That will reduce the realisations for Hot Ice, which owes Tauranga-based company Maximus Intermediaries about $500,000."
Mr Rodewald said discrepancies had been uncovered between pre-liquidation gem sales and the value of gems in Rodewald Hart's possession.
The High Court at Auckland entered a record multimillion-dollar judgment against Maximus Intermediaries - of which Hot Ice International is a subsidiary - on September 13 last year, ordering that $3.1 million be repaid to people who had invested in its pyramid scheme.
The company was founded by brother and sister Coralee Judson and Kerry Paul. Judson has since been adjudged bankrupt.
"As part of our investigations, we are also looking at a possible tie-up with the Bahamas Trust, where Kerry Paul holds bank accounts," said Mr Rodewald, who has tracked 15 family members on the Maximus payroll.
"There were a number of loans to family and a number of other transactions that are being investigated."
Since the Commerce Commission froze the companies' assets and bank accounts in September, a substantial amount of money had been drawn "by various means" on accounts in the name of Coralee Judson, he said.
"They [Judson and Paul] are denying there is any money secreted away. We haven't come to any final conclusion.
"However, we are about to serve an examination order under the Companies Act on another person connected with Maximus."
He hoped investigations would be completed within three to six months.
Last year, Mr Rodewald said he held little hope that Maximus' 12,000 investors would get any of their money back.
- NZPA
