New Zealand’s history of Ponzi schemers

In five of the last nine years, ponzi schemers have been banged up in jail as a result of their nefarious actions.

Between 1991 to 2012, New Zealand had at least one active Ponzi schemer at work at all times, most under the old Securities Commission, which was ineffectual and was swept away to be replaced by the Financial Markets Authority (FMA).

The FMA can’t guarantee there are no ponzi schemes operating as you read this.

That means being on the alert when you choose who to invest with, but the large numbers of investors who have been caught indicate it is easy to fall prey to sharp Ponzi schemes, which the regulator says pop up more frequently in low interest rate times.

The word Ponzi comes from Italian Charles Ponzi, whose 1920s investment scheme in America forever joined his name to faux investment schemes where one depositors’ money is paid as returns to another with the pretence that it was legitimately earned from investing.

For full article by Rob Stock published 2 July 2015 – go to:

http://www.stuff.co.nz/business/money/69819286/new-zealands-history-of-ponzi-schemers

 

High Court rules Family First is a charity

A charities lawyer says charities can now speak out on political issues without fear after a landmark High Court judgment overturning the deregistration of the lobby group Family First.

Sue Barker of Wellington law firm Sue Barker Charities Law said “hundreds” of charities would be affected by the judgment, which follows on from an earlier Supreme Court judgment last August ordering the Charities Board to reconsider its deregistration of Greenpeace. [Read more…]

Companies directed by a single individual living outside Australasia – to be removed

New Zealand registered companies that continue to be directed beyond 28 October 2015 by a single individual who resides outside Australasia – will be removed from the register of companies by the Registrar of Companies, under changes being introduced by the Companies Amendment Act 2014 and the Limited Partnerships Amendment Act 2014. Under this legislation ……

By 28 October 2015 ….  

All New Zealand companies will have to have at least one director who either lives in New Zealand; or lives in Australia and is a director of a company incorporated in Australia by 28 October 2015.

When filing annual returns after 28 October 2015 New Zealand companies will need to indicate whether any director living in Australia is also a director of a company incorporated in Australia. They will also need to provide details of one of those Australian companies (ACN, name and registered office address).

All sole directors of any NZ company who reside outside Australia will have to get busy and before 28 October 2015 appoint at least one suitable director who actually resides in New Zealand, if the company is to comply with the new law. This may prove a demanding task in the case of for example, a sole director who resides in the United States and who currently directs a significant number of NZ companies on his/her own.

See informative case study link PDF below.

John M Carr Company Scheme Updated 3 July 2015

Also see reference:

https://www.business.govt.nz/companies/news-updates/companies-and-limited-partnerships-amendment-acts

Photos of John Malcolm Carr CPA

Photo 1: http://www.carr.co.nz/images/jmc.jpg

Photo 2: http://www.bankler.com/AboutUs/JohnMCarr/tabid/130/Default.aspx

Photo 3: https://www.linkedin.com/in/johnmalcolmcarr

Photo 4: http://taxdeity.com/

Companies and Limited Partnerships Amendment Acts 2014

New changes are being introduced by the Companies Amendment Act 2014 and the Limited Partnerships Amendment Act 2014.The amendment acts have been introduced to help prevent the misuse of the Companies Office registers, and to provide the Registrar of Companies with additional powers. These changes are intended to improve the integrity of the information held on the registers and will be phased in to ensure that companies and limited partnerships have every opportunity to prepare for, and meet, their obligations.

From 1 July 2015

All New Zealand companies incorporated prior to 1 May 2015 filing annual returns after 1 July 2015 will be required to provide:

  1. The date and place of birth of all directors(these will not be publicly available)
  2. Details of any Ultimate Holding Companyif applicable.

Note | This information is required to complete an annual return. The Registrar will take steps to remove any company that does not provide an annual return from the register.

From 28 October 2015  

All New Zealand companies will be required to have at least one director that either lives in New Zealand; or lives in Australia and is a director of a company incorporated in Australia by 28 October 2015.When filing annual returns after 28 October 2015 New Zealand companies will need to indicate whether any director living in Australia is also a director of a company incorporated in Australia.

They will also need to provide details of one of those Australian companies (ACN, name and registered office address).

Source:

https://www.business.govt.nz/companies/news-updates/companies-and-limited-partnerships-amendment-acts

Note: Changes that took effect from 1 May 2015 can be accessed via this link.

Mirrormix Productions Ltd – Non-compliance with the Companies Act: A case Study

Mirrormix Productions Ltd: Current directors – Paul Jones [formerly Gordon Roger Arcus], appointed 17 December 2010 and his partner Budsee Maneephan, appointed 1 January 2014. Budsee Maneephan currently owns 1200000 of the company shares (99.99%) while Paul Jones [formerly Gordon Roger Arcus] owns 100 shares (0.01%). The company is described on the Companies Office website as engaged in the business of “Television film or tape production- J551130″ [Television film or tape production (New Zealand Business Industry Codes].

The Annual return filed on 13 December 2013 filed by “Gordon Arcus” reveals that he owned 1200100 Shares (100%) at that time. The Annual Return filed on 2 December 2014 by “Gordon Roger Arcus” reveals that Budsee Maneephan owned 1200000 (99.99%) of the company shares and Arcus owned 100 (0.01%) at that time.

Let us examine how this shift in shareholdings occurred:

Budsee Mannephan as noted was appointed director on 1 January 2014 by sole director Gordon Roger Arcus.

Companies Office records purport to show that Gordon Roger Arcus filed a document on 16 May 2014 recording that he had vacated ALL shares in the company. However, he did not as he retained 100 shares under his new identity and currently still owns them. So how did he achieve this fraud?

On 1 June 2014 at 12:05:05 Mr Arcus filed a document on line recording that he had changed his name to “Paul Roger Jones” and that his new residential address was “106 Miller Street, Hastings, 4122, NZ. Two and a half minutes later at 12:07:35 he filed another document recording that he had changed his name to “Paul Jones” and his new residential address was “237 Cuba Street, Palmerston North, Palmerston North, 4410.”

A company director is required under the Companies Act 1993 to notify the Registrar within 20 working days of a legal change of his or her name and or any changes in share allocations. If Gordon Roger Arcus did in fact comply with the Act on time, his name change by deed poll must have taken effect sometime no earlier than 1 May 2014 (20 days prior to 1 June 2015).

On 1 January 2014 Arcus filed a document recording that he transferred 120000 (99.99%) of all the company shares he owned to his partner – Budsee Maneephan, who became a second director on that date. Then on 16 May 2014 Arcus filed a notice reporting that 100 of the company shares he had retained were transferred to himself – under his new identity (Paul Jones). Paul Jones (formerly Gordon Arcus) currently retains all these 100 shares, contrary to his fraudulent notice purporting to document his vacation of all his shares.  This means that if his notice complied with the law in its timing (having been filed no earlier than 20 working days prior to 16 May 2014); then Arcus must have had his name changed by deed poll no earlier than about 16 March 2014 (20 working days prior to 16 May 2014).

In the Annual Return he filed on 2 December 2014, Paul Jones [formerly Gordon Roger Arcus] recorded his residential address as 237 Cuba Street, Palmerston North. This address is not a residential address as required by the Companies Act 1993.

Section 2(5) of the Companies Act 1993 (“Interpretation”) states:

A reference in this Act to an address means, –

(a) in relation to an individual, the full address of the place where that person usually lives:
(b) in relation to a body corporate, its registered office or, if it does not have a registered office, its principal place of business.

Directors Paul Jones [formerly Gordon Roger Arcus] and partner Budsee Maneephan have recorded the registered office of Mirrormix Productions Ltd and that of both their residential addresses (as individual and joint shareholders) as 104 Karamu Road, Hastings, Hastings, 4122. However, this address is not a residential address and cannot be used by either director. Nor can it be recorded as a valid registered office address as the premises has been leased for two years (from January 2015) to another business not connected with Mirrormax Productions.

104 Karamu Road Hastings (Property ID TC43618) is owned by Mirrormix Productions Ltd and is currently for sale.

• Nice little standalone freehold property for sale
• Land area 95m2
• Floor area 67m2
• Currently tenanted
• Next to ANZ Bank and Stanton Print

See: http://www.propertybrokers.co.nz/commercial/tc43618/

Director Paul Jones [formerly Gordon Roger Arcus] uses as his current residential 237 Cuba Street, Palmerston North, Palmerston North, 4410 , New Zealand.

This too is not a residential address. It is the address of a retail shop “The R18 Shop”.