Exercising its new powers to make pre-emptive strikes, the Securities Commission has gained a court order freezing the New Zealand assets of Hanover Finance director, Mark Stephen Hotchin. This was done without first warning Mr Hotchin that legal action was underway.
The Commission is investigating Hanover Group, in particular net borrowings from the public of some $32 million from early 2008 up to the collapse of the Group. It is alleged prospectuses issued to support this borrowing did not comply with the Securities Act and that Mr Hotchin is responsible.
The Court was told that many of Mr Hotchin’s
Freezing orders apply to
Subsequent to the freezing order, Mr Hotchin asked the terms be varied. In particular, he wanted sufficient funds to pay pressing bills and meet weekly outgoings stated to be approximately six and half thousand dollars weekly. He also asked that personal possessions in
Asked by the Court to list his assets and liabilities, Mr Hotchin said this would be difficult to complete quickly, particularly since his accounting advisers, Ernst & Young, were not willing to assist because he had not paid the firm for previous work done.
Mr Hotchin did disclose some offshore bank accounts: $A240,000 held in
The Court allowed clothes, photographs and personal effects to be shipped. But the motor vehicles, furniture, art works and jewellery were to remain in
The court refused to release frozen funds. Outstanding bills and weekly expenses could be met out of money held by Mr Hotchin in
Securities Commission v. Hotchin – High Court (21.12.10)
01.11.002