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Blue Chip and Mark BryersOlly Newland's Column, 1 September 2009
It's worth reading an article that appeared in the National Business Review on Friday 28 August 2009 (link here).
For those that have followed this story or know victims who have suffered from the activities of Blue Chip and Mark Bryers, the slow emergence of justice and retribution must make grimly sweet reading indeed. I became involved with Blue Chip in late 2007 when a new client came to my office complaining that the interest on his home loan had not been paid by Blue Chip as had been agreed. This statement startled me and so I agreed to look through the mountain of paper work that was dumped on my desk. Several weeks of intensive study -- and personal meetings with Bryers and his cohorts -- convinced me that there was something seriously amiss. By January 2008 I was sure. With the able assistance of my colleagues, I put together a large flow chart and analysis of what I believed to be "scam" deals -- covering scores of shonky properties with dubious valuations, crooked lawyers, bent accountants not to mention various Blue Chip executives that must have all been asleep at the wheel for a long time. Into this unholy mix went negligent money lenders and reckless mortgage brokers so as to create a noxious brew that poisoned everyone who came in contact with it. The sorts of deals that were uncovered would make a grown man weep. The were many instances of large deposits paid on non-existent properties. There were examples of properties that had been sold twice, and even, it seemed, three times. There were a large numbers of properties where no Code Compliance Certificate had been issued -- but had still been settled in whole or part. There were letters from Blue Chip top executives assuring investors that their deposits were insured -- when subsequent investigation showed they were not. One of the worst breaches of faith, in my opinion, was the existence of a make-believe 'Trust Account' -- complete with deposit slips so labelled -- into which deposits were paid by investors. It appears it was nothing more than a revolving door. Some investors were led to believe that their money was safe, held in a Trust Account, when in fact funds appeared to go in and out of the account without touching the sides! Even regular lawyers fell for this canard. Bryers isn't the only one who needs to answer some tough questions about what was going on. Others involved were executives Rick Flowerday, Neil Bell, Jonathan Woodhams, Robert Bangerter and well-known and respected lawyer Jock Irvine, the latter being chairman of the Blue Chip Board until his resignation a short time before its demise.
What did these men know and what were they thinking? The puzzle becomes even more difficult to understand when considering the material I uncovered in two suitcases full of original documents which had apparently been stolen from Blue Chip offices in the early days of the saga. These documents included demands from the IRD, seizure of documents by them, and many Blue Chip board papers dating back several years. How could these have gone unnoticed by those in charge of running the company? Were they hidden or were they ignored? These questions will have to be answered as well in the fullness of time. With mind-boggling material in hand, I sought advice from my local MP Rodney Hide. He recommended I meet with the Serious Fraud Office and Commerce Commission to lay my evidence before them. When I did, to say they were staggered would be an understatement. In February 2009, my colleagues and I issued scores of Statutory Demands on Blue Chip and its innumerable companies, at which point they surrendered and put themselves into liquidation. To the victims I was assisting, I made it crystal clear on many occasions (in writing and verbally) that in my view justice and compensation would be more likely to be achieved by going through the appropriate Government authorities. In the first instance, the authorities have more legal clout than any individual (or lawyer) and secondly, they have bottomless pockets. It has taken a long time but Bryers is now a self-confessed and convicted criminal who will shortly face a further raft of over seventy more criminal and civil charges with regard to his [allegedly] nefarious activities. Several of his assistants are also facing charges of various kinds and there may be more in the pipeline with the news that loan applications may [possibly] have been doctored by various interested parties. (Which is something I also brought to the attention of the authorities, with evidence, some 12 months ago.) My hope is that ALL the loans and mortgages the Blue Chip victims became embroiled in, will in due course, be set aside because in my view these may have been obtained under highly questionble circumstances. This may come to pass as the evidence becomes clearer. It is my firm view that people who may have been illegally duped should be restored to their former positions -- and not have to pay for the sins and criminal acts of others... if that is what's revealed. It is also my hope that the Government authorities will take all the necessary action required to bring this matter to a speedy resolution so that money being spent by victims for lawyers' fees will soon be rendered unnecessary. The criminal convictions to which Bryers has confessed are but the first step on a long road. There will be more bumps ahead, but I take heart from the adage: "The wheels of justice grind exceedingly slowly but exceedingly fine." Time will tell.
Olly Newland
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