SFO drops investigation into Bublitz’s Mutual Finance
The allegations against Mutual Finance and its associated companies did not identify sufficient evidence of fraud, SFO chief executive Adam Feeley said.
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The Serious Fraud Office has dropped its investigation into Mutual Finance and Viaduct Capital and handed information to the Financial Markets Authority (FMA) to consider.
Mutual Finance operated in its final days under the Crown Retail Deposit Guarantee scheme. When it collapsed into receivership last July, it owed 450 investors about $17 million.
Related property financier, Viaduct Capital, was put into receivership in May 2010 owing 110 depositors $7.8 million.
The SFO said its initial investigation found insufficient evidence of fraud to warrant the use of its full investigative powers under Part 2 of the Serious Fraud Office Act.
“The allegations against Mutual Finance and its associated companies do not currently identify sufficient evidence of fraud,” SFO chief executive Adam Feeley said in a statement today, coinciding with an announcement relating to charges laid against Timaru businessman Allan Hubbard.
“However, some information discovered has raised concerns which we believe are best considered by the Financial Markets Authority (FMA).”
Mr Feeley said that the SFO would consider reopening the investigation if further evidence came to light, and in the meantime it would give the FMA whatever assistance it could.
Mutual Finance was run by 80% shareholder and former Strategic Finance founder Paul Bublitz, who was also involved with Hunter Capital, an Auckland company involved with Viaduct Capital.
Duncan Bridgeman
Tue, 21 Jun 2011
Tue, 21 Jun 2011
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SFO drops investigation into Bublitz’s Mutual Finance
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