David Ian Henderson – a two-time bankrupt accuses Liquidator of conduct breaches

David (Dave) Ian Henderson, twice-bankrupt high-profile Christchurch property developer, and his business associate Ian Bruce Hyndman, appear to have been behind a Notice in the National Business Review (NBR) and one in the NZ Herald (22/05/13) that ran last year, apparently seeking “information” on chartered accountant Robert Bruce Walker, liquidator of Property Ventures Ltd (in receivership and liquidation), the parent company of interconnected companies owned or controlled by Henderson. Henderson was behind the failed $2 billion Five Mile town development at State Highway 6, Queenstown, near the Queenstown Events Centre, colloquially known as “Hendo’s Hole.

As sailors know, it is important at sea to avoid peeing to windward. The blow back can be very unpleasant. So can the result of trying to gather ‘dirt’ and throw it at a person and make it stick, when a very strong gale is opposing the thrower.

Dave Henderson who was bankrupted in 1996 and discharged in 1999, was then bankrupted again on November 29, 2010, the latter one of the largest bankruptcies in New Zealand’s history. By his own account he had gross personal debts of about $165m and $86m after the sale of secured assets. The debts come mainly from personal guarantees he had given on loans to his companies.

Bankruptcies are managed by a Crown authority called the Official Assignee (OA) and normally last for three years. Henderson remains an undischarged bankrupt because the OA filed a notice of objection to Mr Henderson’s discharge, pursuant to s 292 of the Insolvency Act 2006, on 28 November 2013. The OA “strongly suspects that Mr Henderson had entered into, carried on, or taken part in the management or control of businesses during his bankruptcy, contrary to s 149 of the Act. Mr Henderson strongly refutes the Assignee’s suspicions…” (quoted from High Court judgment dated 18 March 2014 – CIV-2010-409-000559 [2014] NZHC 499). [Read more...]

Fraud charges follow liquidation of company

A Company director has been arrested at his home and bailed to appear in Court on Tuesday facing four charges of causing loss by deception (fraud), following the liquidation of his company which has debts of more than $2 million.

The Dominion Post (Friday, June 22, p. A5) has named the man the company in its report:

See: http://www.stuff.co.nz/business/7149604/Piano-shop-director-to-face-fraud-charges

A PLIMMERTON piano salesman, Cameron Crawford, is facing fraud charges after claims millions owed to those who sold instruments through his company are gone.

Cameron Crawford, director of Pianoshop Ltd for more than a decade, was arrested at his home in Raumati South yesterday and bailed to appear in Porirua District Court on Tuesday.

He will face four charges of causing loss by deception. However it was likely that more charges would be laid as other victims came forward to police, Detective Jocelyn Bell said.

Police will request a lengthy remand period, in order to give time to gather statements from victims, in particular those who had bought or sold pianos through Crawford, Ms Bell said.

Pianoshop, in Plimmerton, was placed in liquidation on May 21, with debts of more than $2 million

A list of creditors included more than 200 customers who bought or sold pianos through the store, but had not received the money they were owed or the instrument they purchased.

Two creditors have told The Dominion Post they have already begun legal action to try to collect debts they claimed were more than a year old.

Contacted at his home earlier this week about allegations of fraud, Crawford refused to make any comment.

Shortly after the company was placed into liquidation, Crawford said he was “gutted” the company had been liquidated.

Ms Bell said police had received complaints from several creditors who had given Crawford pianos to sell, but had never received their money. Some were told up until February that their instruments were unsold, but were then contacted as creditors in March by a company trying to strike a deal to receive Pianoshop’s debt.

“From there they’ve been able to uncover the fact that the piano has been sold a year earlier.”

Ms Bell understood that another complaint had been made in Rotorua in relation to the case, and that police had received a file from liquidator Murray Allott which also alleged fraud.

The first liquidator’s report on Pianoshop showed it had run up debts of almost $2.4 million, however selling its assets was likely to raise less than $100,000.

Secured creditor Lock Finance is owed more than $340,000, while employees and the Inland Revenue are owed another $236,000, making it unlikely unsecured creditors will receive any payment from the liquidation.

Eden Digital Ltd – update on liquidation and Erotica Lifestyles Expo licence transfer

Update on Inquiry into Funding of NZ Porn Industry: On 13th June 2012 the second Liquidator’s Report on Eden Digital Limited (In Liq) was issued (It was put into liquidation on 22/11/11 and was directed by American businessman John M Carr CPA from 23/04/08 to 13/09/11). [ Photo of John M Carr http://www.carr.co.nz/images/jmc.jpg ]

The Report revealed that one preferential creditor – (the IRD) has filed a claim in liquidation for $171,792 [for unpaid GST & PAYE].  Based on the first (earlier) Liquidation Report, the company’s employees, who constitute another class of preferential creditors, are owed $20,000 in wages. The latest report shows that seven non-preferential (unsecured) creditors, have filed claims in liquidation for $183,901. This brings the total owed by Eden Digital Ltd to these creditors, to $355,693. An additional several thousands of dollars will probably be claimed by Grant Bruce Reynolds, the Liquidator, of Reynolds & Associates Ltd, (Insolvency Practitioners), for his fees and expenses, and these costs must be paid in advance of all other payments to preferential creditors.

It is unlikely that any of the unsecured creditors will receive anything after all the secured creditors are finally paid out. The latter include the shareholder CVC Group Ltd, directed by John M Carr CPA and holder of all 150,000 company shares in Eden Digital Ltd; Vision Rentals Ltd, Solutions Group Receivables, Konica Minolta Business Solutions and Harper Collins Publishers.

Eden Digital Ltd, which was incorporated on 23rd April 2008, held the licence for Erotica Lifestyles Expo until 16 September 2011 (as reported in the Waikato Times) – the day John M Carr CPA resigned as director of Eden Digital Ltd and appointed Raymond Sydney Corben Simpson of Mt Eden, Auckland, as its sole director. On that same day the Expo licence owner, CVC Group Ltd, directed by John M Carr, withdrew the licence from the licencee Eden Digital Ltd, also directed by John M Carr. (CVC Group Ltd owns Eden Digital Ltd and both have John M Carr as sole director).

Although Eden Digital Ltd was technically put into liquidation on “by special resolution of the shareholders”, under ‘the watch’ of Mr Raymond Simpson on 22nd November 2011; this action was necessitated as a result of a financial collapse that occurred under the sole ‘watch’/directorship of John M Carr.

It would appear that Eden Digital Ltd must have been trading whilst insolvent and had not been paying tax for many months – prior to Mr Simpson being appointed as director – a state of affairs that occurred under the directorship of John M Carr – [ Note again!: he was director from 23 April 2008  to 16 September 2011. More importantly he was sole director from 15 May 2010 to 13 September 2010].

Having abandoned the directorship of Eden Digital Ltd on 16 September 2011, Mr John M Carr’s next move was to incorporate the company Esprit Events Ltd, of which he is sole director, a company also owned by CVC Group Ltd. Esprit Events Ltd purchased the Erotica Lifestyles Expo licence from CVC Group Ltd, a company of which he (Carr) is also sole director. CVC Group Ltd wholly owns both Eden Digital Ltd and Esprit Events Ltd.

Eden Digital Ltd was the licensee of Erotica Expo Expo and the transfer of the licence to a related party, Esprit Events Ltd, could hardly be seen as a significant or complex financial transaction. Director John M Carr merely obtained the licence from himself and then gave it to back himself, then returned it to himself, to put it crudely. Such a ‘transaction’ did not require a large contingent of lawyers from Checketts McKay Law firm in Cromwell or a consignment of Adult Services handmaidens to effect the ‘complex’ financial ownership transmutation. It was not exactly the ‘sale of the century’.

Having now obtained the financial records of Eden Digital Ltd, Grant Bruce Reynolds, the Liquidator, has indicated that he will be focusing his investigation into Mr John M Carr’s activities as director: specifically on “any potential breaches under the Companies Act,” and on any possible voidable preferences”. He will also be “Reviewing the sale of the business [Erotica Lifestyles Expo/Eden Digital Ltd] to a related party [Esprit Events Ltd] pre liquidation including obtaining advice on the validity of the sale and whether or not adequate consideration was given by the Purchaser for the business.”

Among the 22 unsecured creditors of Eden Digital Ltd listed in the First Liquidation Report filed on 23 November 2011, are PJ Digital Ltd and the US-registered corporation Better Business Services, Inc.  [see note below] both owned and directed by John M Carr; NZX Media Ltd and Ezisoft Computer Systems Ltd, both directed by David Bruce Crow; ASB Showgrounds which has provided the venue for a number of successive Erotica Lifestyle Expos; IRD (penalties and interest for unpaid tax), and ACC (unpaid ACC levies).

Note: Better Business Services, Inc., also referred to as BBS Inc, was incorporated in San Antonio, Texas, on November 11th, 1983, and was authorised under Texas Charter number 67876000 to carry out defined business activities in Texas, including those carried out in a certified public accountancy practice (tax returns, bookkeeping, payroll etc). John M Carr CPA is director, president and registered agent of Better Business Services, Inc. an unsecured creditor of the NZ-registered company Eden Digital Ltd (In Liq). On 6th September 1984 under charter number P03291 BBS, Inc. was authorised to do similar business in Florida.

References:

Expo claim ‘bollocks’  By Daniel Adams. 29 November 2011

http://www.stuff.co.nz/waikato-times/news/6053216/Expo-claim-bollocks

Companies Office website: www.companies.govt.nz

Porn Kingdom asset sale to be questioned. National Business Review. 8 July 2009. By Lucy Craymer.

http://www.nbr.co.nz/article/porn-kingdom-asset-sale-be-questioned-105061

Cynical Porn Parade Will Confront Children – says Family First NZ

Cynical Porn Parade Will Confront Children: Family First NZ Media Release 22/02/12

Family First NZ [a registered charity with the Charities Commission] is advising parents of school children in Palmerston North to be aware that there will be a public pornography parade featuring topless girls happening after children have been released from school on Friday. [It is again calling for politicians to "amend" the law "so that public porn parades and public displays of nudity are deemed offensive and indecent, and thereby illegal."]

“The Erotica [Lifestyles Expo] Promotion, also known as Boobs on Bikes, is scheduled to travel around the central city square from 4pm. This is a cynical move by the hard core porn industry to expose children and young people to the industry,” says Bob McCoskrie, National Director of Family First NZ.

“We would advise parents to do everything they can to avoid children being exposed to this parade, and if necessary, they should keep their children at home for the day.”

Family First is disappointed that the parade is even able to happen in such a public venue but points the blame squarely at the police for not enforcing the law consistently, judges who believe that topless porn parades and nudity are not offensive, and the lack of political willpower to act in the best interests of families and children.

“Steve Crow can label it a ‘freedom of expression’ event, but to the intelligent, it is simply a cynical attempt to market and normalise the porn industry to families.”

“It is time that the rights of families not to be exposed to offensive and adult material are put before the rights of the pornography industry to promote themselves,” says Mr McCoskrie.

Family First NZ continues to call on the politicians to amend the Summary Offences Act and the Crimes Act so that public porn parades and public displays of nudity are deemed offensive and indecent, and thereby illegal.

ENDS

www.familyfirst.org.nz

Note: The licensee for staging Erotica Lifestyles Expo is Esprit Events Ltd , a company incorporated on 10 November 2011 by John Malcolm Carr CPA just days before the former licensee Eden Digital Ltd, also directed by John M Carr, was put into liquidation on 22 November. Carr is sole director of CVC Group Ltd,  which  owns Eden Digital Ltd (In Liq) and Esprit Events Ltd. On 16 September 2011 John Carr revoked the license Eden Digital held to stage Erotica. This was done on the same day he resigned as director of Eden Digital Ltd. On 11 November the license was transferred from Eden Digital Ltd to Esprit Events Ltd. CVC Group Ltd owns the trademark for “Boobs on Bikes” – used in the Erotica parade which markets Mr Carr’s hardcore porn business.

 

 

 

Hamilton City Council’s near miss as sexpo firm folds

The company wanting to host a sex expo at Claudelands went into liquidation the same day it asked the Hamilton City Council to agree to the show.

Councillor Dave Macpherson said the council had had a lucky escape despite not being aware of the financial situation when it voted 9-1 last week against hosting the Erotica Lifestyle Expo.

Eden Digital Ltd, which held the licence for Erotica Lifestyles Expo, was put into liquidation on November 22 and, according to the liquidator’s report, struggled to attract large numbers to the event and had suffered cashflow problems.

Auckland-based liquidator Grant Reynolds said sole shareholder CVC Group director John Carr appointed him to liquidate the company after realising it had no way to repay its debts.

CVC Group removed the licence for Erotica from Eden Digital “some months back” and as a result the company had lost its revenue-earning ability.

This month CVC set up Esprit Events, which is the new licence-holder for Erotica.

Eden Digital went into liquidation owing $434,000 [most of it to IRD] and Mr Reynolds said it was unlikely any of the unsecured creditors would be repaid in full.

ASB Showgrounds in Auckland is among the unsecured creditors. [It had served as a venue for Erotica Lifestyles Expo for some years, but recently its management ended its contract with the Expo organisers, no doubt due to unpaid bills].

Source http://www.spcs.org.nz/wp-admin/post-new.php

Story by Nikki Preston. Published Wednesday, 30 November 2011

Continues ……

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