.
Penniless granny receives $4m loan
By TONY WALL – Sunday, 01 March 2009
An elderlygrandmother with no known assets or income was lent $4 million by a mortgage fund company chaired by former prime minister Jim Bolger -a transaction now under investigation by the Serious Fraud Office.
Mortgage documents obtained by the Sunday Star-Times show that Trustees Executors, a trust company chaired by Bolger, advanced $4m to Maria de Magalhaes, a 73-year-old Portuguese speaker originally from Mozambique, who was only in the country on a visitor's visa. .
The money was lent in February 2007 against an apartment building in central Auckland linked to Turnbull and his wife, architect Monica de Magalhaes. Although it is unclear what the company was told about de Magalhaes, sources close to the case say a simple check would have uncovered her true identity and financial position.8m, which she has little or no hope of paying.
Maria de Magalhaes has since defaulted on the loan, has been bankrupted at Trustees Executors' request and had a high court order against her for $3. She has been trying to gain an income by running Portuguese lessons at an Auckland high school. It is understood bankruptcy proceedings have been started against her.
In addition to the $4m loan, two other loans totalling almost $5m were advanced by Trustees Executors to Turnbull's sister-in-law, also called Maria de Magalhaes. She is now on the domestic purposes benefit and looking after their three children, while Turnbull has moved to Hong Kong and is understood to be living in a hostel.
Monica de Magalhaes has also been bankrupted and owes millions of dollars. The money was part of the $242m Tower MortgagePlus fund, administered by Trustees Executors and frozen last April.
Sources dealing with the fallout of the saga say it raises serious questions about the lending practices of Trustee Executors. More than 5000 investors had savings tied up in the "low-risk" fund, of which about 40% has been returned. More than 5000 investors had savings tied up in the "low-risk" fund, of which about 40% has been returned.
"She signed whatever he put in front of her," one source said.
Sources said Maria de Magalhaes trusted her son-in-law.
"How can they give a loan to someone with absolutely no assets? It's sub-prime stuff. But the source said it was incredible that Trustees Executors had not done proper checks.
"I don't know anything about business to be honest, nothing at all," she said."
Maria de Magalhaes seemed confused about the details of the loans when approached by the Star-Times.
"At the end of the day, the buck stops with the board and the chairman," said William Cairns, an Auckland mortgage broker who was mortgage manager at Guardian Trust for eight years.
Other sources said that as chairman of the board Bolger had to take responsibility for the poor lending practices."
Nicki Crauford, the chief executive of the Institute of Directors, said the board of a lending institution was responsible for properly monitoring the activities of its managers. "The board has to make sure policy is being adhered to and if it's not, people are held accountable and they should be reviewing their lending strategies. The executive director of the company, Deepak Gupta, declined to comment. The executive director of the company, Deepak Gupta, declined to comment. Tower executives referred all inquiries to Trustees Executors.
SFO director Grant Liddell said he could not comment while the case was under investigation.
Turnbull had already shifted to Hong Kong when he was adjudicated bankrupt last year. If he returns, he will require the permission of the Official Assignee to leave the country again.
.
Millions in recovered costs at stake
Friday, 30 January 2009
Millions in costs usually awarded in court to police to pay for doctors fees over blood tests are at stake in a Court of Appeal decision.
Christchurch man Leroy John Barr successfully challenged medical costs routinely awarded by District Court judges throughout the country by appealing to the High Court.60 and an analyst fee of $93.
He was convicted of drink-driving, fined $600, ordered to pay court costs of $130, medical expenses of $102.
Judges have been ordering thousands of the guilty to pay those medical costs.
Doctors charge a callout fee and mileage if they are called to take a blood sample for someone who has opted for their blood to be tested for alcohol levels rather than use a breath-alcohol level.
Yesterday, Crown lawyer Simon Mount said the Crown believed there was jurisdiction under the Costs in Criminal Cases Act which says the court can order such sums as it wished towards the cost of the prosecution as long as those costs are properly incurred.
However, Justice Christine French said there was no specific legislation for ordering the costs and said the District Court had no jurisdiction to do so. Rather, the costs were part of carrying out the prosecution.
Mount said the High Court judge's point that the medical costs were incurred before the person was charged meant it was not part of the prosecution was not the correct interpretation.
Parliament had done so in the case of analysts' fees under the Land Transport Act.
He said it was possible if the appeal failed that Parliament would need to act to define the costs issue.
He said the law specifically imposed limits on what expenses could be sought. Barr's lawyer, Andrew Bailey, said the acts were clear that court costs were recoverable but costs of investigation were not.
Bailey said if people were asked to pay medical fees sometimes larger than the fines they got they would be dissuaded from giving a sample which was not the intent of the law.
Medical expenses were not part of them.
.
.
Tourists cancel after sex attack
Thursday, 29 January 2009
Tourists concerned for their safety are cancelling campervan and car rentals after an attack on a Dutch couple, a rental company says.
Jucy Group chief executive Tim Alpe said yesterday that a handful of bookings for campervans had been cancelled by Dutch tourists during the past week.
A 25-year-old shearer, who forced a Dutch backpacker to watch a sexual attack on his girlfriend, pleaded guilty to nine charges in Invercargill District Court last week. They cited their concern over crime and safety.
The couple were attacked in their station wagon at a camping ground in Tuatapere, western Southland, on January 15.
The charges included rape, sexual violation, threatening to kill and burglary.
It was time that the Government got serious about cracking down on "thugs who think tourists are a soft target".
"It's hard enough with tourism numbers being down without having to worry that criminals are denting your industry," Mr Alpe said.
As a result of the attack at the Five Mountains Holiday Park, the Foreign Affairs Ministry in the Netherlands adjusted its travel advisory to advise travellers about the risk of camping in New Zealand.
The company now encouraged customers to use campgrounds or park somewhere where they were able to drive off easily or note suspicious activity.
Spokeswoman Cas Carter said it would continue to work on ways to keep tourists safe.
Tourism New Zealand said it was concerned at booking cancellations. .
The addition of a heading on the Netherlands' travel advice page which told of "serious crime" in New Zealand was well balanced, she said."
.
Father charged after fatal train smash
By CLIO FRANCIS – Wednesday, 28 January 2009
The father of a four-year-old boy killed in a horrific train collision close toPukekohe has appeared in courtfacingcharges relating to the fatal smash.
The 38-year-old man was in Pukekohe District Court, charged withthree counts of dangerous driving resulting in injury and one count of dangerous driving resulting in death.
On January 20 a silver car, driven by the man and carrying histhreeyoung children and his niece, was struck by a freight train as it drove over a railway crossing.
Constable Steve Carey of the Serious Crash Unit said the car had been on the wrong side of the road when it was struck by the train.
A four-year-old boy died later in hospital.
Further testing had shown the barriers had been operational at the time of the collision, he said.
He said witnesses had told the SCU that the (crossing) barriers had been down at the time of the smash.
He said suggestions the man had tried to weave his car around the safety barriers, and across the tracks were not yet confirmed..
"I've got to be a bit careful about what I say. but that is one possible angle we're examining at", he said..
Anyone with information is urged to contact the Pukekohe Police on (09) 237 1708 or (09) 237 1700.
Senior Sergeant Rob Arnold said he would like to speak with anyone who saw a Silver Mitsubishi Sedan traveling on State Highway 22 between Drury and Paerata on January 20.
.
Conditions on Wellington trains ‘unacceptable’
Tuesday, 27 January 2009
Police have described train conditions after the Wellington Cup in Trentham as messy and unacceptable after passengers vomited and passed out in extreme heat when a signal fault stranded packed carriages.
Upper Hutt Senior Sergeant Jason McCarthy said police would now make suggestions to Tranz Metro about crowd control after police officers stationed on overcrowded carriages had to deal with passengers who were drunk, hot and agitated, and unaware of what was resulting in delays.
"There's certainly things they could improve on, and we will be making suggestions," Mr McCarthy said."
The installation and use of a speaker system would have eased tensions as passengers did not know what was occuring, he said. "It was messy.
The was contacted by several members of the public who reported long queues for alcohol at the races, people fainting and vomiting in train carriages and general disorganisation.
More than 28,000 people were estimated to have attended the annual race day on Saturday — 5000 more than organisers expected. .co. Shade needs to be organised for the general public and more staff for bars, or BYO," a dompost.
Another reader said the trains were a disaster.nz reader said yesterday. It definitely was not proper procedure or an appropriate crowd-control technique. "Delays due to faults are fine, but being locked in a stationary train – talk about health and safety."
Tranz Metro spokesperson Nigel Parry said staff would investigate after reports that travellers were stuck in carriages for up to 30 minutes in rising temperatures."
Tranz Metro spokesperson Nigel Parry said staff would investigate after reports that travellers were stuck in carriages for up to 30 minutes in rising temperatures.
He confirmed that emergency stop buttons were activated several times, but was unable to confirm reports that the heaters were on in some carriages.
"Conditions were exacerbated by some people on the train," Mr Parry said. One man was arrested after he broke through barrier tape, opened the door to a helicopter, got inside and sat in the seat.
Police made 26 arrests at the races six more than last year for offences such as assault, fighting, disorderly behaviour, theft and trespass.
.
He has been charged with unlawfully interfering with aircraft and will appear in Upper Hutt District Court on Friday
.
Conditions on Wellington trains ‘unacceptable’
Tuesday, 27 January 2009
Police have described train conditions after the Wellington Cup in Trentham as messy and unacceptable after passengers vomited and passed out in extreme heat when a signal fault stranded packed carriages.
Upper Hutt Senior Sergeant Jason McCarthy said police would now make suggestions to Tranz Metro about crowd control after police officers stationed on overcrowded carriages had to deal with passengers who were drunk, hot and agitated, and unaware of what was resulting in delays.
"There's certainly things they could improve on, and we will be making suggestions," Mr McCarthy said."
The installation and use of a speaker system would have eased tensions as passengers did not know what was occuring, he said. "It was messy.
The was contacted by several members of the public who reported long queues for alcohol at the races, people fainting and vomiting in train carriages and general disorganisation.
More than 28,000 people were estimated to have attended the annual race day on Saturday — 5000 more than organisers expected. .co. Shade needs to be organised for the general public and more staff for bars, or BYO," a dompost.
Another reader said the trains were a disaster.nz reader said yesterday. It definitely was not proper procedure or an appropriate crowd-control technique. "Delays due to faults are fine, but being locked in a stationary train – talk about health and safety."
Tranz Metro spokesperson Nigel Parry said staff would investigate after reports that travellers were stuck in carriages for up to 30 minutes in rising temperatures."
Tranz Metro spokesperson Nigel Parry said staff would investigate after reports that travellers were stuck in carriages for up to 30 minutes in rising temperatures.
He confirmed that emergency stop buttons were activated several times, but was unable to confirm reports that the heaters were on in some carriages.
"Conditions were exacerbated by some people on the train," Mr Parry said. One man was arrested after he broke through barrier tape, opened the door to a helicopter, got inside and sat in the seat.
Police made 26 arrests at the races six more than last year for offences such as assault, fighting, disorderly behaviour, theft and trespass.
.
He has been charged with unlawfully interfering with aircraft and will appear in Upper Hutt District Court on Friday
.
Crime victims give up hope
Friday, 23 January 2009
Out-of-pocket crime victims who have waited years for reparations have driven to offenders' homes, battled government officials and often given up hope of getting their money.
Many say National's plan to hit offenders with a $50 "crime tax" is pointless when the same people fail to pay money already ordered by the courts.
According to Justice Ministry figures, nearly $80 million was owed to victims of crime at October 31.
Des Anderson, 59, was attacked in his car while driving home in July, 2007.
Justice Minister Simon Power said the buildup was unacceptable, but insisted the $50 levy was achievable.
The man was charged with wilful damage and ordered to pay $618. .75 reparation at $20 a week.
"I try not to think about it because it just makes me vomit," Mr Anderson said. But, 18 months later, only $70 had been paid.
When he was told the court-ordered reparation was $916, he decided not to claim insurance.
Clive Mallett, 67, the owner of TQ Cafe in Thorndon, said his cafe had been burgled almost a year ago.
"The system's a farce.
But none of the money was paid and a ministry official called yesterday and said the reparation had never been ordered. And the $50 idea is a farce as well, when people aren't paying. And the $50 idea is a farce as well, when people aren't paying."
The $50 tax would not work, she said.
"I can't begin to imagine what victims of violent crime must go through with their pitiful monthly cheques serving as a reminder."
Karl Waddell, 24, of Titahi Bay, was supposed to receive $250 in reparation for the burglary of $1100 worth of gear from his car. "If they're serious about the interests of victims, they would underwrite the reparations.
Mr Power said he agreed with victims' concerns.
When the offender got out of prison but the money did not arrive Mr Waddell drove to his house to demand it, but the man had moved.
"That is totally unacceptable and we are working hard to streamline court processes to improve the collection of reparations. The buildup of outstanding debt had been inherited from the previous government. "The pool of funding for victims in general needs to be increased and that's why the levy is so important."
The $50 amount was simple and achievable, he insisted. Interest earned on the money helps to offset the costs of collection. Interest earned on the money helps to offset the costs of collection.
.
Developer on benefit lives in mansion
By MARTIN VAN BEYNEN – Saturday, 17 January 2009
PALATIAL: The house at 104 Banks Ave where beneficiary Dennis Thompson lives.
He must be the best-housed unemployment beneficiary in the country.
The mansion in Banks Ave, Dallington, is owned by Canterbury pork magnates Sally and William Glass and businessman Anthony Gardiner.
Despite being bankrupt and having to resort to welfare, failed Christchurch property developer Dennis Thompsonoccupies one of Christchurch's finest residences and still drives a Range Rover.
Thompson, whose property empire collapsed last year, ending in bankruptcy for himself and Bartlett on November 26, told in July that he would be examining for a job, perhaps in his old field of drainlaying or tree felling.
It was transferred to the threesome by Thompson's partner, Sharon Bartlett, and her company in June last year, Land Information records show. Records with the Insolvency and Trustee Service show Thompson has listed his new occupation as unemployment beneficiary.
The job hunting, however, appears to have been unsuccessful.
His generous circle of friends included well-known horse breeder Neville Cockroft, now in Kaiapoi, who told yesterday he had lent a 2004 black Range Rover 4.
Thompson did not return messages yesterday although he did tell last year that he and his family had been allowed to stay in the house while renovations were completed.
Thompson had had the car for about five months, he said.4P, registered to his name, to Thompson for his personal use.
Cockroft said he had bought some of the 30 horses sold by Thompson's company, D Thompson Racing Ltd, in 2007. The loan of the car was related to horse business.
In their first report, the liquidators said they would be investigating the sale of horses to a third party and also the transfer of a vehicle and trailer unit that was subject to finance.
D Thompson Racing went into liquidation in August last year, owing money to Inland Revenue and Speirs Finance. .
About 20 companies connected with Thompson have gone into liquidation in the past two years with a combined indebtedness of about $18 million.
.
Sally Glass, who lives in Thompson's former address in Daresbury Ln, Fendalton, declined to comment yesterday
.
Rise of deaths in mental health care
The Friday, 16 January 2009
Nearly 200 serious incidents involving mental health patients were reported in a year, a new report shows.
Director of mental health David Chaplow's annual report, made public yesterday, says 152 of the 183 serious or sentinel events reported in 2007 resulted in a patient's death.
The report says about a quarter of the 183 cases were closed after little or no investigation because the death was from natural causes, other medical problems, or unrelated to mental health care. .
Forty-two of the patients were under compulsory treatment.
The length of time varied from one minute to 180 days, with most patients spending less than a day in seclusion.
In 2007, a total of 6425 people spent time in adult mental health units, 1143 of whom were kept in seclusion at some stage.
Meanwhile, 223 people were treated with electroconvulsive therapy in 2006-07, a "continued reduction" from previous years, the report said.
Of the 461 suicides examined, 169 people had used a mental health service in the year before their death.
It also includes comprehensive information about suicides among mental health patients for the first time, analysing figures for 2004.
.
The suicide rate among mental health service users was about 22 times that for non-users, the report said
.
Identity of Air New Zealand crash victims confirmed
– Thursday, 15 January 2009
Families of the New Zealanders killed in the Airbus A320 crash last November are expected to hold a service on a French beach this weekend before returning home with their loved ones.
Two Germans and five New Zealanders were killed in the crash into the Mediterranean off Perpignan in the South of France.
Air New Zealand has the missing body was that of Auckland Air New Zealand engineer Murray White, 37. Six bodies were recovered.
The two Germans have also been identified but their names have not been released.
A judicial identification commission in France formally named the New Zealand remains as those of Captain Brian Horrell, 52, from Auckland, Christchurch engineers Michael Gyles, 49, and Noel Marsh, 35 and Civil Aviation Authority airworthiness inspector Jeremy Cook, 58, of Wellington.
Air New Zealand chief executive Rob Fyfe, who is heading to Perpignan with families of the dead, said it had been a long wait for family, friends and colleagues to have official confirmation of those who have been recovered.
The plane had been on a two-year charter to the German company XL Airways and was due to be returned to Air New Zealand when the crash occurred.
"We continue to be hopeful the ongoing search will deliver Murray back to us soon. "Whilst we know how important it is, and how much the families value getting their partners, sons and dads back, our hearts are heavy for the family of Murray White, who remains missing,” Mr Fyfe said.
The Pyrenees-Orientales Prefect, Hugues Bousiges, who represents the French Republic in the department, will head the ceremony with Deputy Prosecutor Jean-Pierre Dreno."
A formal ceremony is expected to be held in Perpignan tomorrow night New Zealand time. .
Following the ceremony the group will head to the beach at Canet-en-Roussillon, the closest point to the crash site off-shore.
– With
.
Meanwhile, crash investigators at the Bureau d'Enquetes et d'Analyses in Parisare continuing this week to study data recovered from theaircraft's flight data recorders