 |
|
 |
|
15 October 1999
News Release
Consolidated Securities Limited
The Securities Commission has become aware that a Nelson company, Consolidated Securities Limited, has been undertaking securities business in association with IMI Pacific Group Limited and Walakahai Pacific Corporation Limited, companies that we have previously issued warnings about.
David John Hobbs is the director of Consolidated Securities Limited. Kerry Patrick Francis, Kenneth Neil Close and Valerie Lynn Miller are its shareholders.
Willard Karaitiana Amaru and John Edward Baylis are directors and shareholders of IMI Pacific Group Limited and Walakahai Pacific Corporation Limited.
The information in our possession indicates that IMI Pacific Group Limited and Walakahai Pacific Corporation Limited receive funds from clients of Consolidated Securities Limited. These funds are then said to be placed with an offshore company (not named) which manages a "trading program". Returns of "as great as 13% per month" are promised to the clients of Consolidated Securities Limited.
Investors initially pay their funds into an account held by a Nelson company, Tasman Business Consultants Limited. David John Hobbs is a shareholder and the director of this company.
We consider that the present arrangements involving Consolidated Securities Limited, IMI Pacific Group Limited and Walakahai Pacific Corporation Limited are in breach of the law and we have acted to prohibit further advertising. There is no registered prospectus and no trustee or statutory supervisor to represent the interests of investors. The returns projected appear ridiculously high and the Commission has seen no evidence, despite its enquiries, of the sort of supporting information that a prudent investor would require. Investors' money is clearly at risk.
Consolidated Securities Limited through its director David John Hobbs now informs us that it proposes to discontinue the marketing of these products and "all investors will be free to withdraw their investment".
The Commission counsels people to be extremely cautious when dealing with Consolidated Securities Limited, Tasman Business Consultants Limited, IMI Pacific Group Limited and Walakahai Pacific Corporation Limited, or anyone claiming to represent them.
Norman F Miller
Senior Executive (Operations)
15 October 1999