The High Court in Christchurch has appointed PWC as interim liquidators. File photo. Photo: RNZ / Nate McKinnon
The Financial Markets Authority (FMA) is investigating a Christchurch-based investment corporation led by businessman Bernard Whimp.
The investigation centred around Chance Voight Investment Corporation, as well as subsidiaries, persons and entities associated with Chance Voight Group.
The High Court in Christchurch has appointed PWC as interim liquidators at the request of the FMA.
The companies were associated with businessman Whimp.
The six companies were, Chance Voight Investment Corporation Limited ,Chance Voight Investment Partners Limited, CVI Securities Limited, CVI Financial Limited, CVI Partners Mortgage Fund Limited, CVI Partners Mortgage Income Fund Limited.
PWC was due to report back to the High Court in Christchurch by 26 January.
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.
In 2014, the FMA tightened regulations around off-market offers, effectively stopping the practice.
The FMA said its investigation into Chance Voight was ongoing, and would not comment further due to suppression orders.
Last month, Chance Voight bought financial advice provider Patterson Wealth, but Patterson Wealth did not appear to be affected by the liquidation orders.
Bernard Whimp denies companies insolvent, calls FMA "inept" and "useless"
In an email sent to investors on Monday, Bernard Whimp hit out at the FMA's action and denied the Chance Voight companies were insolvent.
Whimp denied the Chance Voight Funds, with circa $50 million in deposits, had ever missed a quarterly interest or principle repayment, nor had a single investor complained to the FMA in six years of operations.
Chance Voight Investment Corporation was solvent when measured as a "going concern," and had a single creditor, but no external, trade or operating debt he said.
Whimp slammed the FMA's behaviour saying the funds had answered standard FMA enquiries over the past six years without incident.
"FMA did not issue Chance Voight funds with any warnings or orders at anytime in the funds operating history," he said.
"The funds met FMA information requests so that FMA could consider the funds operations so it is reasonable for the funds to believe that they operated in a compliant and approved manner."
Whimp continued to hit out at the FMA, describing them as "inept" and "useless".
"The placing of these companies in liquidation is an appalling outrageous bullying act by an out-of-control inept Financial Markets Authority (FMA)," he said.
"The liquidations demonstrate that the New Zealand Financial Markets Authority is a sad and useless organisation."
Whimp vowed to prove that the FMA was an organisation that was "rotten to the core".
RNZ has approached Whimp for further comment.
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