The noose is tightening around Ken Wikeley, having lost control of his family trust and being called to account for a USD 123 million fraud allegedly perpetrated in league with entrepreneur Eric Watson.
This fraud arose from Mr Wikeley’s involvement in obtaining default judgment against Kea Investments Ltd from a US court, with a Kentucky court upholding a supposed 2012 joint venture coal mining agreement; an agreement subsequently ruled a forgery by the New Zealand courts.
Kea is the investment vehicle established by Sir Owen Glenn to manage USD 350 million proceeds following sale of his transport logistics company.
The first Kea Investments heard it supposedly owed USD 123 million was after attempts were made to seize Kea assets in the US in satisfaction of the Kentucky court judgment.
Kea’s legal agents in the British Virgin Islands had failed to forward notice of the pending Kentucky case.
Sir Owen moved smartly, having the New Zealand High Court issue a world-wide order blocking enforcement of the Kentucky court order.
Global anti-enforcement orders are controversial. To what extent should a court in one country interfere in the judicial processes of another? To do so suggests the other country is a vassal state, subservient to the orders of another.
The Court of Appeal ruled it was a step too far in this case for the New Zealand High Court to injunct the orders of a Kentucky court. It discharged the injunction.
But Mr Wikeley is no longer in a position to pick up the reins and carry on with enforcement of the disputed USD 123 million Kentucky court ruling.
After the High Court imposed its anti-enforcement order, interim liquidators were appointed at Kea Investment’s request to take control of Mr Wikeley’s family trust. This trust is the lead litigant in the disputed Kentucky litigation.
The Court of Appeal signalled it would be sympathetic to any plans by Trust interim liquidators to put on hold further attempts to enforce the Kentucky judgment.
The court was told interim liquidators have obtained US Bankruptcy Court recognition as being in control of Mr Wikeley’s family trust. The liquidators, not Mr Wikeley, now exercise all rights of his family trust as litigant in the US.
In New Zealand, the Court of Appeal confirmed the supposed 2012 joint venture agreement is a fabrication and further confirmed Mr Wikeleys’ family trust, now controlled by interim liquidators, is liable on earlier court orders to pay 75 per cent of Kea Investment’s legal costs incurred in legal action taken in England, the US, and Australia.
The court was told a Queensland court ordered confiscation of Mr Wikeley’s passport.
Part of his legal argument in New Zealand courts seeking to regain control of the Kentucky litigation was tossed out after his legal submissions were identified as being created by generative artificial intelligence. References to non-existent cases were the giveaway.
Wikeley v. Kea Investments Ltd – Court of Appeal (21.11.24)
25.038