Canterbury Investment Director Bernard Whimp Absent from High Court Liquidation Hearing
Bernard Whimp, the director of Chance Voight Investment Corporation, a company based in Rangiora, Canterbury, was notably absent from a recent High Court liquidation hearing concerning his businesses. The hearing was prompted by actions taken by the Financial Markets Authority (FMA) against Chance Voight and its related entities, which are now facing potential liquidation. This situation raises serious concerns for investors, who may be facing significant financial losses. During the hearing held in Christchurch, it was revealed that the Chance Voight group allegedly used funds from new investors to cover expenses and pay returns to existing investors. Richard May, counsel for the FMA, presented evidence indicating that a substantial portion of investor deposits was redirected to pay other investors, highlighting a concerning pattern of financial mismanagement. The FMA's forensic analysis traced the flow of funds, showing that investor money was funneled through a lawyer's trust account before being distributed to various entities within the group. The interim liquidators' report confirmed the FMA's findings, stating that the CVI Group is materially insolvent and that obligations to investors have primarily been met through new inflows. This raises alarm about the sustainability of the investment model employed by Chance Voight. Many investors, primarily aged 65 and over, reportedly lacked a full understanding of the risks associated with their investments, which complicates the situation further. Given the complexity of the transactions and the opacity of the records, the interim liquidators indicated that estimating the final outcome for investors is challenging. However, they anticipate a substantial shortfall, prompting considerations for potential pooling orders to address the intercompany transactions. As the situation develops, the absence of Whimp and the lack of clarity surrounding investor protections continue to raise significant concerns in the Canterbury investment landscape.
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