Being sued for an alleged conspiracy in the mortgagee sale of an
Auckland apartment, lawyer Jesse Nguy is questioning other sales in the same
apartment block.
What should
be the appropriate price for forced sales of residential apartments at 160
Grafton Road in central Auckland has seen a flurry of pre-trial applications seeking
to identify any deals behind the sales. Stephen
Kelly built the Grafton apartments. Secure
Financial Services Ltd was left out of pocket as second mortgagee of Grafton unit
3A4 when it was sold by interests allegedly associated with Mr Kelly after a
forced sale in November 2011. Secure
alleges that Mr Kelly was in league with his solicitor Mr Nguy and that they conspired
to fix a price leaving it out of pocket.
It alleges the sale was put through at approximately $248,000 when in
fact it sold for some $540,000. Secure
has demanded to see legal paperwork for sales of adjacent apartments. Mr Nguy in turn wants to see Secure’s paper
work for its sales of other Grafton Road apartments. There are indications Secure sold two
apartments which are comparative to or superior to apartment 3A4 for only
$25,000 each. These sales were made one
month after the disputed mortgagee sale of apartment 3A4. Justice van Bohemen ordered discovery. This detail provides context as to the state
of the market at the time of the sales, he said.
Secure Financial Services Ltd v. Nguy – High Court (14.02.18)
Secure Financial Services Ltd v. Nguy – High Court (14.02.18)
18.038