The FMA said a businessman was contacting investors seeking payments. (File photo) Photo: 123rf
Investors are being warned to "fully inform themselves" before giving businessman Bernard Whimp or anyone associated with investment firm Chance Voight any more money.
It was reported earlier this month the Financial Markets Authority was looking into Chance Voight Investment Corporation, as well as subsidiaries, persons and entities associated with the Chance Voight Group.
The High Court in Christchurch appointed PWC as interim liquidators at the request of the FMA.
The companies were associated with Whimp, who had rejected any suggestion they were insolvent.
The FMA said it understood Whimp had contacted investors about the interim liquidation and sought payments, which he described as donations to fund legal expenses.
"The FMA recommends that investors fully inform themselves before providing any funds to Mr Whimp. Those with any queries about their investments - including any communications received from Mr Whimp - should speak with the interim liquidators and seek independent advice from a lawyer or a financial adviser," head of enforcement Margot Gatland said.
Gatland said the liquidation was because the FMA considered there was reason to believe they might be insolvent, the affairs of the group might have been conducted in a manner that breaches provisions of the Companies Act 1993, and that Chance Voight group companies and Whimp as their director might have breached the Financial Markets Conduct Act 2013 and other financial markets legislation.
She said before it sought the court orders, the FMA had corresponded with Whimp and issues Chance Voight four compulsory information request notices under s 25 of the Financial Markets Authority Act 2011. Among other things, the notices sought accounting and financial records.
But the FMA was not happy with the responses and formed the view the group could be insolvent and breaching legislation.
The court would hear the FMA's liquidation application at a date to be confirmed.
The court also granted the FMA's application for interim asset preservation orders against Whimp and another subsidiary, Hanmer Equities. These were sought to protect assets pending the outcome of the FMA's investigation into Chance Voight and mean they cannot take or send out of New Zealand any money.
Whimp rose to prominence in the 2010s for making off-market offers to buy shares from investors at below their market value.
The then-Securities Commission took Whimp to court over what it termed the misleading "low ball" offers.
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