Estate of Auckland financial adviser Mark Norrie has been frozen following allegations he deceitfully rerouted funds from a planned Queenstown development prior to his death. Fellow investors Melvin Jones and James Grove allege he acted fraudulently, misrepresenting investment plans to an Asian investor.
The High Court was told of Queenstown investment plans set up in 2018 by Crown Range Holdings Ltd, a company controlled by Grove, Jones and Norrie. During an informal directors’ meeting at a Newmarket café, Mr Norrie was deputised to seek $1.2 million working capital from Asian clients; Mr Norrie operated a financial advice service, Norrie & Daughters Ltd. He approached Li Wu, a client who at various times had several million dollars in Norrie & Daughters’ trust account. It was impressed upon Mr Wu that Crown Range would not be asking for any money unless Mr Wu was happy with the project. Mr Wu was content to proceed after being hosted around the proposed Queenstown development by Mr Jones. Unbeknown to Mr Jones, Mr Norrie was asking Mr Wu to put up $1.6 million, not the expected $1.2 million.
Evidence was given that after Mr Wu agreed to go ahead, Mr Norrie had Mr Wu sign a bank authority to transfer $1.6 million to Saturn Holdings 1957 Ltd, an investment company then owned by Mr Norrie. Mr Wu was duped. He thought the money was going direct to Crown Range. Subsequent inquiries identified that some, but not all this money did eventually find its way to Crown Range. Mr Norrie died in August 2019.
The High Court was told Mr Wu has since been repaid all he is owed except $100,000 principal, some interest and his legal costs incurred setting up the 2018 loan. Mr Wu lodged a caveat over the Queenstown development to protect the balance he claims is owed. Crown Range sued in the High Court saying there was no contract between Mr Wu and Crown Range; Mr Norrie acted without Crown Range authority, it says. Justice Down ruled the caveat remain. It is arguable Mr Jones held out Mr Norrie as having authority to finalise a loan at the time Mr Wu was hosted around the proposed Queenstown development, he said. If so, Crown Range is liable for Mr Norrie’s actions, even if deceitful. A full court hearing is necessary to establish whether Mr Norrie did have authority at law to commit Crown Range to the $1.6 million loan.
WNY Group Ltd v. Crown Range Holdings Ltd – High Court (6.07.20)
20.116