New Zealand’s recently overhauled Serious Fraud Office has shown its intent to tackle white collar crime, launching an investigation into one of the country’s wealthiest businessmen.
The SFO has started to probe the affairs of Allan Hubbard related to his Aorangi Securities mortgage company and seven charitable trusts. The government has appointed two independent accountants to act as “statutory managers” of the eight entities in the meantime – their role is to protect the interests of creditors.
In New Zealand, the investigation is seen as a big test for the SFO, which has been relaunched by its new boss, Adam Feeley. The agency was due for the axe until a change of government rescued it. Last month Feeley promised to lead the SFO into a “new era” of enforcement, where it would focus its efforts on serious crime.
“We cannot be perceived as an isolated agency which uses powers without reference to other enforcement agencies, or with a lack of accountability for the time or manner in which we conduct an investigation,” he said. “The public must see the effectiveness of our work.”
In a letter to his investors Hubbard said he had acted “honorably” and said the government’s decision to put his assets under statutory management was “misguided”.
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