Real estate agent faces authority inquiry

A complaint about a Taupo real estate agent is being investigated by the new Real Estate Agents Authority.
Kevin Wakelin's company owned Harcourts franchises in Rotorua, Wanganui and Taupo before it was put into voluntary liquidation in October. Originally named Wakelin Real Estate, the company was changed to CNILD Ltd and then Monzre Ltd in the week before it was liquidated, owing nearly $5 million.
Both the Rotorua and Wanganui franchises were sold and are under new ownership, but Wakelin continues to operate in Taupo under the new name Kevin Wakelin Real Estate.
The Real Estate Agents Authority confirmed it was investigating the situation as the result of a complaint, but could not divulge information on what the complaint was or who laid it.
A spokesman said there was no way of knowing how long the investigation would take. 
Ministry of Economic Development national enforcement unit manager Phil Day said  nothing could  stop the director of a company in voluntary, insolvent liquidation opening another business unless they were personally bankrupt, were on the Companies Office list of banned directors or held a relevant conviction.
None of these applies  to Wakelin.
"Otherwise, the only other restriction, under the Phoenix provisions of the Companies Act, is that you cannot start up a company with a similar name to the previous name. This is relatively new legislation that has not been tested well in court, so there is no case law about what would be considered too similar."
Day said his unit's investigations were initiated by complaints and none had been received in relation to Wakelin.
The Herald on Sunday said  the Inland Revenue had demanded payment of some of the $900,000 in taxes owed by the company before  the decision to liquidate and the IRD was one of more than 80 creditors.  Some  were owed six-figure sums and a bank was owed $2.6 million.
Wakelin reassumed control of the business at the beginning of last year, when his son, Grant Wakelin, resigned as a director. He is now operating as a sole trader, from the same offices, as Kevin Wakelin Real Estate.
He did not want to comment further to The Daily Post, but told the Herald on Sunday he was worried he might be the target of any legal action emerging from the Real Estate Agents Authority investigation.
"The laws of the land will apply. Of course one's concerned."
But he said the new operation was "a totally different structure" and, when asked why businesses and homeowners should feel confident dealing with him, he pointed to reduced overheads and his long experience in real estate.
He said Grant Wakelin was no longer involved, but he was unable to comment further because he had to protect himself legally.
"I don't want to jeopardise the chance of being able to keep people's jobs and all that sort of thing going."
- Additional reporting APN News & Media