Property scam allegation: Serial bankrupt's 'plausibility' queried

Friday, 18 October 2019

The case involves allegations relating to a property in Parnell, just east of Auckland's CBD.

A high-rise developer and serial bankrupt has been accused of facing a 'plausibility issue' over an alleged Auckland property scam.

Ryan Matthew Leggatt claimed property developer Peter Louis Chevin fraudulently changed corporate details in an alleged Parnell mortgage hijacking saga.

Peter Louis Chevin developed the Columbard building (centre) on Auckland CBD's Wyndham St, later Formule 1 and now an Ibis hotel.

Chevin, who in the early 2000s developed the skinny Columbard high-rise in the CBD's Wyndham St, said his conduct was not fraudulent.

The case involving multiple defendants was likely to go to trial, according to a newly-published High Court judgment.

* Auckland property prices experience biggest slump in five years**

Earlier this year, Avon Parnell Ltd (APL) director Leggatt successfully applied for freezing orders restraining Chevin and other defendants from dealing with any funds secured by mortgages granted over APL properties.

Justice Christine Gordon said an interim injunction in June stopped Chevin, 55, holding himself out as an APL agent.

Discussion followed about whether Chevin filed his statement of defence in time.

Chevin said it was filed only a week out of time, and he was overseas 'on a business trip' in August.

Justice Gordon said Chevin's delay had not caused Leggatt harm, 'let alone irreparable injury'.

The judge said Leggatt 'must have had some indication' of what Chevin's case would be anyway.

Leggatt has claimed Chevin got a loan in APL's name from Basecorp Finance Ltd, secured against APL properties.

APL owned two properties in Parnell on trust for Waihapu Ltd.

Tim Edney, Leggatt's father-in-law, was Waihapu's principal. The judgment said Chevin argued Edney was effectively an APL director.

Chevin claimed he and Edney, who is not a defendant, agreed to replace Leggatt as a director and shareholder.

But Justice Gordon said Chevin was accused of facing a 'plausibility issue' here by claiming no written recording existed of this deal.

The case involved claims a $990,000 transfer was used to facilitate the scheme.

The case also related to claims Chevin fraudulently presented documents.

The new judgment showed Chevin said his conduct was not fraudulent.

Justice Gordon said defence arguments were enough for Chevin's application to file his defence statement.

A case management conference was scheduled for October 31.

Counsel for Leggatt and Chevin have been approached for comment.