Company linked to alleged ponzi fraudster in liquidation

Friday, 28 July 2017

Paul Hibbs, pictured in 2001, is due to appear in court on multiple SFO charges in August.

A company linked to a man who ran what is alleged to be a significant ponzi scheme has gone into liquidation as another court date looms for the alleged fraudster.

Paul Clifford Hibbs was last year named as being under investigation by the Serious Fraud Office (SFO) and Financial Markets Authority (FMA), relating to his company Hansa.

Waterstone Insolvency liquidator Damien Grant says investors have claimed about $1.8m so far.

The SFO and FMA provided no further details, but last September investor John Docherty and his wife claimed they had been left stranded after allegedly being swindled out of $650,000.

Multiple sources said Hansa investors have been told at least $20 million was missing, and that Hibbs was thought to have been running a ponzi scheme.

* Alleged ponzi fraudster's hair and beauty business owes $1.4m

* Craig Stobo 'completely unaware' name used in alleged ponzi prospectus

* 'Naive' investors claim $650,000 lost to suspected Ponzi**

In June, Hibbs appeared in the Christchurch District Court to face various charges brought by the SFO.

The SFO said two businesses owned and operated by Hibbs, Hansa and Cameron Gladstone Investments, developed into a ponzi scheme about 2008.

Hansa was established in 2005, with Hibbs listed as the only director and shareholder the company has ever had.

The company went into liquidation in January, and Waterstone Insolvency liquidator Damien Grant said payments to the company worth about $9m were identified.

Freezing orders were obtained over all of Hibbs' assets, while Grant said he suspected a number of related entities were similarly involved in the fraud.

One of those, Cameron Gladstone Investments, went into liquidation in May.

Hibbs had already put his international hair and beauty product supplier, Boutique Hair & Beauty, into receivership in February.

Then on Thursday, another company directed by Hibbs, Containers Direct Leasing, also went into liquidation.

Waterstone Insolvency was also appointed liquidators of this company.

In his latest liquidators' report for Hansa, released last week, Grant had signalled they would be pursuing the liquidation of several related entities.

The report says four investors have so far claimed $1.8m in the liquidation of Hansa.

Legal proceedings have also been initiated against several companies and Hibbs, Grant said.

Hibbs had been due to appear in court on July 12 facing charges of false statement by promoter, theft by person in a special relationship, using forged documents, and forgery, all brought by the SFO.

This was adjourned until next week, however.

After he first appeared in court, SFO director Julie Read said Hibbs went to some lengths to ensure information sent to investors looked genuine.

'Investors who suspected that their money was being misappropriated took the right action in reporting the matter to the FMA who referred the matter to the SFO.'

High-profile businessman Craig Stobo was listed as Hansa's managing director in its prospectus, but said he was 'completely unaware' this was the case until regulators contacted him.

Stobo said he was never involved as a general manager or had any relationship with Hansa, and gave regulators as much information as he could.