Several companies under the umbrella of property developer Du Val Group have been placed in interim receivership by the High Court.
The move was made at the request of the Financial Markets Authority (FMA).
The interim receivership relates to Du Val Capital Partners Ltd, along with what the FMA describes as "a number of entities within the Du Val Group."
Du Val Capital Partners is a 100% subsidiary of Du Val Group NZ Ltd.
Du Val is a residential property developer that sources funds from investors that meet the "wholesale investor" guidelines.
The FMA says it understands there are approximately 120 investors in various Du Val entities.
John Fisk, Stephen White and Lara Bennet of PwC NZ have been appointed interim receivers.
The FMA says interim receivers are generally appointed to seek clarity around the financial position of a company or group of companies.
As well as placing the various Du Val entities into interim receivership, the High Court also approved the FMA's request for asset preservation orders, which the FMA said were to support what it described as an active investigation into Du Val Group.
In March this year the FMA issued a formal warning to Du Val Capital Partners as the general partner of the Du Val Mortgage Fund Limited Partnership, regarding a potential breach of the Financial Markets Conduct Act relating to misleading or deceptive conduct that was likely to mislead or deceive investors.
Interim receivership orders were also made in respect of Kenyon and Charlotte Clarke.
According to Companies Office records, John Kenyon Clarke is a director of Du Val Group NZ Ltd.
Du Val Group NZ Ltd is jointly owned by Charlotte Marie Clarke and Karapiro Corporate Trustees Ltd, which is in turn jointly owned by Charlotte Marie Clarke and John Kenyon Clarke.
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57 Comments
Put your hand up if you are surprised!
No - didn't think so.........
Many more to come.
The residential construction sector is going down the gurgler
I thought they were a sure thing? According to their Facebook ads it was 10% returns guaranteed?
A certain other company offering 10% returns are still taking money from retail investors, one pensioner just the other week gave them $500k which was his life savings from the sale of his house. The FMA has done nothing to stop this.
What????
Should be 'wholesale investors' only - rule enforcement seem less than stringent shall we say..........
Worse, the funds were then paid straight back out to a redeeming unit holder from their private capital partnership.
Will I Am Shocked by that comment, if you catch my drift?
Well Dun
Should have brought BTC...
Surely not? This is too brazen, too ridiculous, I cannot in my right mind believe it.
Must be a rumor.
Was it the same as 10% by Christmas guaranteed LOL
Yeah what happened to those 10% interest rates?
Surprise! There is limited demand for $750k shoeboxes
Squirrel Bolton reckons they have a place.
Yes in a class action lawsuit regarding building failures, remediation issues and property scams.
About 5 years ago I noticed a new Rolls Royce with a 'Du Val' number plate and thought, they'll be bust once this boom runs its course. Sure enough. It's never wise to be spending your investors profits in advance.
About 5 years ago I noticed a new Rolls Royce with a 'Du Val' number plate and thought, they'll be bust once this boom runs its course. Sure enough. It's never wise to be spending your investors profits in advance.
I'm sure Kenyon's taken care of his finances. Good luck unravelling it all.
I had similar thoughts Kaper - it was another reason/data point/observation why I thought it was more probable than not that we were living in a property bubble.
We are living in a simulation.... that's having a property bubble.
A lot of blue pills have been swallowed in this simulation.
When did you get that idea, 20years ago? because it was blindingly obvious then with large amounts of data to back it up.
Umm, not investors profits but investors capital.
I balked at the brazed instagram posted showing CC and children out for a fancy lunch with friends where one of their children was tucking into oysters. They were so happy with him. Meanwhile someone may be struggling to get their own lunch because Du Val has locked it all up.
Yes they are stupid for investing.
KC generated so many supporters, just wanted a rich business friend? They all look la bit silly now! Check out LinkedIn.
Indeed better if they have an old dunger hilux or corolla, then you know they were being wise with money. Points if they went as far as the starlet or early swift. Before the cost of fixing the electrical systems cost more then getting another vehicle.
Yet the key part of a con is the overblown, dress to impress, part of the swindle. In real life those who can afford to live comfortably and in luxury don't billboard themselves with ostentatious things unless they are selling something hard, e.g. central country diplomacy.
If you see someone in a lambo, tesla or a rolls be very suspicious. It is probably a scam.
Whereas if you see someone in an early 1930's to 1970's car that is a labour of love and a money pit... They obviously have a mild obsession in taking care of things.
Just hope that the naive people who parked their money with this outfit are not too badly affected:
https://www.nzherald.co.nz/business/fma-gets-court-to-put-du-val-group-…
When BusinessDesk rang the doorbell at the gated home this morning Clarke said “see ya later ... go away.”
“At work, Kenyon is like a bull in a China store,” Charlotte Clarke said in the video.
Priceless
Really? A fool and their money are easily parted.
All your due diligence had to be was to spend 5 seconds googling images of these 2 charlatans (I think that's acceptable lol) and any sane person would have walked away. Same with the other two with boats and planes, walk away.
Of course
But who knows there might be senile older people etc etc
To be fair the directors had a history of failure and their business model was always going to fail.
The ChCh based building companies that are funded by wholesale investors, are actually financially stronger than most banks, if you did your research!
They operate totally differently to Du Val!
Time will tell for the Chch operators. Their recent activity suggests their position isn't as strong as you make it out to be.
Like stealing most involves less effort and skill then taking the legal course of actions. It just shows Clarke is mentally more deficient then most people. What he does is not smart or intelligent, it is unethical. It is hard to admire someone who does really stupid things just with low ethics. Easy to trick those who are in a high trust relationships with the scammer & optimism bias who are often family, partners and friends as well, or those affected by accidents or disease including cancer, those with cognitive decline like elderly, low education and unfamiliarity with tech more then others. Why we don't all do these stupid things to scam millions from others is because we have a shred of ethics and would not sell our family for a quick buck.
But sure easy to see where you are standing. Hey did you try selling the miracle natural immunity boosting water yet or how about the never fail investment ponzi to your community & the church groups. The faithful, those suffering illness and those in your social circles are even easier targets because of the community connections. It gets even easier if you on purpose target those who have direct relationships with you or are local businesses. Once done all you need to do is a rinse and repeat for locations & community groups. Plus family are stuck with you and often culturally are forced to forgive & give infinite second chances, The Fools.
What took so long?
This bunch were on the ropes for ages and everyone just stood there, mouth open waving their arms and muttering under their breaths.
This will be one of the biggest crashes in years and will rattle the housing market to the core.
Pity the poor subcontractors who will stand to lose everything.
It's belief in Magic that kept it going for so long.
The magical, Guaranteed Capital Gains that are the divinely ordained right of the New Zealand Residential Property Market.
No need to worry about tiresome things like Return on Asset; Alternative Application of Funds or Net Returns after Costs. Just wait for the fairies to wave their interest rate wand, and all will be well.
You’ve seen it all before ey Olly?
Big Daddy wrote the book......
When the FMA investigated them for taking retail money, the FMA did absolutely nothing to ensure that retail investors were repaid their funds. So here we are, with these people about to lose their life savings.
Yep, only the likes of Fletchers can lose close to a Billion and still be in business.
I believe the owner was posting videos like this after having frozen investors funds (remember 10% returns on money backing a development??)
Have to admire him, he's relieving stupid people of their cash and having fun.
Why he has really bad taste. Burning cash would have been more of a statement, but parading badly made cheap looking expensive wastes of money like this as a sales pitch. This is not admirable. This is someone in need of a criminal prosecution and intervention in either order. Yeesh even a lifestyle coach on how to live with other people's wealth well. Like stealing most involves less effort and skill then taking the legal course of actions. It just shows he is mentally more deficient then others. What he does is not smart or intelligent, it is unethical. It is hard to admire someone who does really stupid things just with low ethics.
I know those who are serial scammers and yet none of their actions are admirable and they just rinse really stupid actions, a child can do, to get cash. It is a numbers game (plus easy to trick those who are in a high trust relationships with the scammer & optimism bias who are often family, partners and friends as well, or those affected by accidents or disease including cancer, those with cognitive decline like elderly, low education and unfamiliarity with tech more then others), but the fact some are hit big gets a lot of money out. Why we don't all do these stupid things to scam millions from others is because we have a shred of ethics and would not sell our family for a quick buck. Most are really ugly people inside and it shows in how they treat others. Don't be surprised if even Taylor's Anti-Hero is a shoe that does not fit with them.
This is really, really big. I saw online work has been halted at all their sites. That's a massive downstream impact.
Yes. There is a human cost. But people only get concerned after the fact.
Definitely risk of big downstream impacts.
One of my clients, for example, supplies a certain type of product into Du Val projects (although they had pulled back in recent months due to slow payment and general 'brand perception' issues). I won't say what it is in case I risk doxxing them or myself.
However, I know they have a receivable still outstanding that definitely won't be getting paid.
Most will have hopefully got tools offsite today, doubt many where leaving much overnight on site.
This well stuff most of them IRD chase now and no $$$
For the spruikers, can you explain to me how the collapse of a big developer is a sign the housing market is about to bounce back?
Because every property investor in this country is sitting on a boat load of cash, ready to pounce as soon as the market hits the bottom. Well so they claim anyway.
My personal experience is that where I'm building property prices are +12.8% in the last year, and the builder I use has just hired 2 more staff. He's got a stack of work.
Always pays to buy when everyone says sell. Construction starts Monday....can't wait.
Deja Vu 2009 - Blue Chip - Mark Bryers et al.
Methinks plenty more shoes to drop yet.
There are 400 second tier lenders in Nz.
brace, brace brace
Will be interesting to see the fallout from this.
Unfortunately many innocent parties will be impacted- sub-contractors, sub-contractors, investors, lenders and duped purchasers.
A lot of duped sub contractors go under as they are often left carrying the can for materials costs and loss of equipment.
Reading this kinda reminds me of my old workplace…flashy developers facade
Owen Culliney is a director and a lawyer. Interesting to see what comes of that and if the Law Society takes issue with it.
Anyone remember Goldcorp?
Ray Smith decamped to Utah with his mistress.
https://www.nzherald.co.nz/business/past-losses-tarnish-local-gold-bull…
Others people's money catching 🔥 🔥 🔥
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