New
Zealand’s Financial Markets Authority (FMA) is investigating Christchurch-based
Chance Voight Investment Corporation and affiliated entities, after securing
court approval to place six of the firm’s companies under interim liquidation.
The
investigation targets the investment operation of Bernard Whimp, who gained
notoriety over a decade ago for making unsolicited “low-ball” offers
to shareholders in major companies, including Contact Energy and Fletcher
Building. Those controversial offers drew criticism for allegedly preying on
naive investors who didn’t understand the true value of their shares.
Three PwC
partners – Malcolm Hollis, John Fisk and Lara Bennett – took over as interim
liquidators on December 10 for six entities: Chance Voight Investment
Corporation Limited, Chance Voight Investment Partners Limited, CVI Securities
Limited, CVI Financial Limited, CVI Partners Mortgage Fund Limited, and CVI
Partners Mortgage Income Fund Limited.
The FMA
confirmed the probe targets the investment firm, its subsidiaries, and
individuals connected to the Chance Voight Group, but won’t elaborate on
specifics due to court suppression orders and an FMA confidentiality order.
Whimp
Vows to Fight Liquidation
Bernard
Whimp told The Post NZ he plans to challenge the liquidation proceedings.
“Absolutely we are challenging the liquidation,” he said, calling the
regulator’s action a “fantastic ‘dog’ act.”
Whimp added
that he would provide more commentary in coming days, stating: “Leaders
must lead at all times and in all circumstances, for me it’s just another D-Day
on the Normandy beaches.”
The Chance
Voight probe adds to a growing list of enforcement actions in New Zealand’s
financial sector. The country has seen a sharp uptick in financial misconduct
cases, with fraud
complaints jumping 40% as the Serious Fraud Office handled 174 million dollars
in cases across
COVID relief schemes, kickback corruption and public sector theft.
Past
Regulatory Battles and Hedge Fund Ambitions
Whimp’s
history with regulators stretches back years. The Securities Commission
(predecessor to the FMA) previously ordered him to correct misleading offers
and secured court injunctions to stop share transfers to limited partnerships
he controlled.
In 2021,
Whimp launched Chance Voight Investment Partners, promoting it as a hedge fund
targeting bargains in the Australian sharemarket. He aimed to attract
“eligible” investors with high investment knowledge to participate in
“unregulated offers,” promising to compound investor capital at 20%
annually or better.
The
investigation got murkier when a Chance Voight subsidiary acquired Patterson
Wealth Partners Limited, a licensed financial advice provider in
November, just weeks before the liquidation proceedings.
Regulatory
Pressure Mounts in New Zealand
Scammers
have become increasingly sophisticated in targeting New Zealanders. A total of 265
million dollars was drained from victims through schemes that exploit both online
payment systems and personal banking details. Fraudsters have also adapted
newer tactics, with fake Facebook
celebrities stealing real money on WhatsApp by impersonating prominent financial
figures using AI-generated videos.
Meanwhile, two
“investors” fooled 55 people from New Zealand for seven years, with a married couple convincing
victims from the local community that they were experienced traders while
actually using new funds to pay earlier investors and cover personal expenses.
Chance
Voight Investment Corporation is based in Cone Street in Rangiora near
Christchurch. The Companies Office lists 33 shareholders including a trustee
company, Whimp, and several private investors.
This article was written by Damian Chmiel at www.financemagnates.com.
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