HANOVER FINANCE & WATSON AND HOTCHIN WILL

COLLAPSE

KIWI FINANCE COMPANY HANOVER

A $35-million case against Hanover Finance directors in March 2012 could see the high flyers & others getting charged. The proceedings relate to statements made in the December 2007 prospectuses & is a start.Action by the FMA under the Securities Act was being taken against Hotchin, Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and Dennis Broit the characters involved in Hanover.

HANOVER: a Finance company sold to Allied farmers who now can't even do there thing properly as the shares collapse. Both Allied and Hanover are to blame--both are inept companies who do not know whats happening in the world.

The government needs to put the breaks on where these finance companies invest in to safeguard Kiwi savers? but even as these companies report on their financial situation some will be dishonest and kiwi savers wil suffer as directors can pay themselves what they like at investors expense. The love of money, greed & possessions has indeed corrupted these guys but what they don't see is that their families and kids will inherit the stigma their father's have left. They do consider the money they are using belongs to someone else; and it is the timing that went wrong as it went wrong all around the world. It happened in the 87 share market crash and no lessons were learn't as people again invested in finance companies for a higher $$$$. Its greed on all sides and those who investors can only say nothing---you did it.

Allied Finance came along & decided to buy into Hanover on another dumb move just to add to the turmoil so now the investors had hopes of getting their shares back but they were in for another shock---- Allied could not forsee that it already too late.

WHY DID INVESTORS GO TO ALLIED:

16,000 New Zealanders had investments worth $550m frozen by Hanover in mid-2008? Were they correct to freeze them? Companies that fail to fulfil these continuous disclosure obligations are subject to the provisions of the Securities Markets Act. Therefore any breach can result in both criminal and civil action so if Hanover is proven to not fully disclose its situation before the freeze then they are liable I would think?? The Government would not step in and ignored to place Hanover Finance into Statutory Management as they voted 96% in favour of the 5 year plan which gave Hotchin & Watson 5 years of play time. Watson “is what he is,” Mr Sheppard says, and the investors who voted for the moratorium are “still idiots.”

By freezing funds the investors were at a loss straight away as NZ rules are so lack with finance companies that nothing was done about it and still nothing. It allowed these guys the edge. Hotchin and Hanover co-owner Eric Watson persuaded investors to vote for a "delayed repayment" deal over five years saying they were confident the investors would get 100 per cent of their money back but in fact knew this would never be the case when looking at the books and debts that weree mounting. One just had to see what the world was becoming to realize the property market was heading for a free fall. The company owed more than $500 million to the investors but in 2009 it should have been plain to all that this was just a way to bargain out of any investor backpay and allow themselves to head overseas with the funds they had of investors in their accounts. The dopey investors took the bait yet again after being warned not too by even people like New Zealand Shareholders' Association chairman Bruce Sheppard & Allieds confidence being on the fence as well on how they could profit from this. David Henry disputed comments by Mr Sheppard about how the deal would affect Hanover owners Eric Watson and Mark Hotchin virtually letting them off the hook. David Henry now sees where the asset base he bought was not worth the quoted valuation of the asset base??

Hanover's lending was in residential and commercial property development on shakey ground still today in 2010 but back in 2009 was actually ludicrous for Allied to think they could bail the debts out of the bin. One of the loans was to Christchurch developer Dave Henderson for the Five Mile township development near Queenstown but how Allied could even think of reversing the property market beats me so taking on these dud loans was an impossibility which as we find I am right. Hotchin in the meantime can be let off the hook as now its not his problem but then he helped himself to the pot of gold [a payrise amounting to $41m plus ] allowed him to still live a life of luxury at the misery & expense of the investors and as he thought a guaranteed life of luxury. The Security commission has other ideas and rightfully so and about time. Hotchin and Watson are con artists no different from Madoff obsessed by greed.

LIFE AT THE TOP:

The media always hypes everything as per usual but Mark Hotchin had the grace to tell all on Feb 17th on TV closeup. Good on him but he is still to blame for his outrageous lifestyle and haing plenty of other peoples money. His wife Amanda defends her family's luxurious lifestyle, despite growing anger that the businessman is living the high life while former investors in his finance company lost. They rented a $43,000-a-month home in Hawaii, Amanda Hotchin said she doesn't need to justify the holiday splurge to "anyone" and although the timing must have been wrong they are young and never had such money before until people gave them their savings. She must care that many people went against the wall or that they are using investor funds to live in the good life--no remorse whatsoever, no offer of help to those who were hurt by them, no dignity left or pride; but it is the start not the end. Hanover investor Tony Ricciotti lost $700,000 as a result of Hanover's demise, money earned "through a lifetime of hard work". He joins a list of many who have lost everything; who are now living on the breadline with family members while Hotchin struts around living the life only one can dream about. Hotchin got Tony's hard earned money just like many others but then Tony didn't have to give it right. Now we can say the investors were greedy. Its crunch time for many ex finance companies & in comes Sue Brown.

ERIC WATSON ALSO ON THE LIST:

Sue Brown, the Security Commission’s director of investigations and litigation told the National Business Review: “We’re continuing to look at the roles of all the people involved in the preparation of prospectuses. Mr Watson was a promoter of the offers and therefore as a promoter he is one of the people who could be liable if there were untrue statements made .” And there surely is as even in 2008 statements they made are not true.

Writs are flying for Watson now as it all catches up on him and Hotchin; and financial institutions have refused to come to the party with development funding for the US$400 million ($543.9 million) project - a dairy and beef farming operation in the state of Georgia, using Kiwi-style farm management practices. Watson's agricultural empire is slowing. A group of disgruntled United States investors has also lodged a class action to get back their share of US$539 million invested with Watson and long-time US investment partner John Ledecky in their Triplecrown Acquisition. The unhappy investors claim Watson and Cullen Agricultural Holding - the name of the farm scheme - "breached their fiduciary duties and their duty of disclosure" in the deal that merged Triplecrown into the farming operation. Like Hotchin Watson will get his just dues. It will happen.

FROZEN PROPERTIES OF HOTCHIN:

Marina at Gulf Harbour, Whangaparaoa Development land

Paritai Dr home $30 million Auckland

69ha Coromandel farm

Jack's Point Sections near Queenstown

51ha farm Karaka, south of Auckland

Office buildings Queen St, Auckland

Office building Fanshawe St, Auckland

Two retail units Tamariki Ave, Orewa

4.5ha waterfront land holiday home on Waiheke Island

Hotchin lives in a luxury property on the beach in Surfers Paradise & pleads he cannot live on $1000 a week. Hanover Finance, co-founded by Mr Hotchin and Eric Watson, froze $554 million of investors' money in July 2008. He withdrew an application for more than $1000 a week [ he needed $7000], and Justice Helen Winkelmann refused an application to allow him to transport a Mercedes and a Porsche to Australia, jewelry etc. This guy did front on TV in NZ on Feb 2011 and explained his thoughts so one must give him some credit but infact its a farce as he will never give back and start from scratch again. Now is he right and what have the investors got to say about Allied?? But also the investors should have listened to Bruce Sheppard and taken his advise--- they told him to f... off instead so now these same investors can think every night they go to bed that they were fools giving all their savings away to a quick rich finance company?

SO WHATS THE ANSWER BONDS??

NZ Bonds are a fixed interest investment wher one lends money but does not have shares in the company itself unlike buying shares. They can be liquid and usually for a set term at a set rate but this can change. Liquid allows you to sell bonds via an exchange like shares. You can sell before maturity and if the bonds interest rate has dropped then you make more money but if they rise then you lose. Usually amount of interest doesn't change unless its a floating or pertpetual rate bond. If you hold till maturity the your initial capital value has no impact at all. However never buy from newspapers as all good bonds are snapped up by Brokers who on sell. Interest is paid on a semi annual compounding & better than Bank term deposits. A bond is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Basically one is making a loan to the government or corporation and gets paid a sum of money in the future for letting the government or corporation borrow the money. Bonds are one way the government raises money besides taxes.

OR BANK TERM DEPOSITS:

Well no to this as interest rates are lower than anywhere else & if you quit earkly then the Bank may levy fees as well as a lower interest rate but if you dont mind the interest rate you can allow some funds to be placed in term deposits. But be sure of the timeframe over which you wish to invest your money as you might need it early. The more often interest is both calculated and credited, the more you will earn. For example, $10,000 invested for five years with interest calculated daily then credited monthly will earn significantly more interest than if interest were calculated quarterly and credited annually. The best investment you can make is to pay off your debts. Why pay 9 per cent on your home loan or 18 per cent on your credit card and earn just 3 or 4 per cent on bank savings. Every $100 you use to pay off your debts is another $100 you are not paying 9 or 18 per cent interest on. Remember, a dollar saved is a dollar earned.

OR STOCKS:

Stock shares are traded, bought and sold at a stock exchange. They allow the stock owner to share in the profits of a company. These profits come in the form of dividends, which are allocated according to how much stock one holds in the company. Of course one of the disadvantages is that one can lose money if a stock's price goes down.

[ Ponzi scam gets Hotchin ] [ Pansy Wong Bad or good ] [ Save NZ Farms for Kiwis: STOP ] [ Building Tax depreciation NZ ] [ Hubbard vs Securities Commission ] [ Finance Report July 2010 ] [ Banks & Subprime Mortgage ] [ Finance Companies 2010 ] [ Property Report May 2010 ] [ Buying Mortgagee Property Tips ] [ Kiwisaver good or bad Providers ] [ George Soros Mortgage answers March 2010 ] [ USA Printing $$$$ 2010 ]

WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ: [ Read the story ] The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense.[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money????? [ Government $250m a week borrowing ] [ Transmission Gully Impact costs ] [ Kiwi Family Savings Plan ] [ Benefit cuts good or meaningless ] [ Quit smoking-heres how ] [ Levin Business dying ] [ NZders lose out ] [ World population exploding ]

" Invest in finance companies--- crazy--- they can do what they like with your $$$$ "

WORLD WILDLIFE [ Saving Wildlife species ] [ Primate Wildlife on Myanmar /Thai Border ]

International law help ask us

[ ] back to home

Email us: export@pobox.com