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Source: ONE News -
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The problem with cases like that of failed South Island financier Allan Hubbard is that he does not fit the mould of those accused of fraud.
We are more familiar with a stereotypical white-collar criminal who drives a Porsche, lives in a mansion, is a jet-setter and appears to thumb his or her nose at those who lost money through their actions.
Basically, they are easier to vilify. There are few grey areas about whether their intentions were noble.
Hubbard does not fit that description. There is of course the modest home, the old VW. The personal guarantee of funds invested. The numerous stories which have emerged over the past year of struggling farmers and business owners thrown a lifeline by the man.
Then of course there's his advancing years and ill health.
We just are not used to those facing fraud charges being humble, frugal or god-fearing, let alone old, frail and unwell.
But none of that matters - at least that's what the Serious Fraud Office appeared intent on impressing upon the public when announcing the charges yesterday.
"The motives and lifestyle of an alleged offender are ultimately irrelevant," SFO boss Adam Feeley's statement read.
What's important, he says, is "whether deceit occurred, the losses incurred by that deceit and whether the facts meet the prescribed elements of one or more criminal offences".
Or 50 offences, to be precise. The charges, under the Crimes Act, cover theft by a person in a special relationship, false statement by a promoter and false accounting. If proven they carry sentences of 10 years in prison.
But does that, as the SFO claims "address the matter in a way that is proportionate" and is it in the "interests of justice"?
Hubbard's supporters don't seem to think so.
John Funnell from the Leave Allan Hubbard Alone campaign told Breakfast this morning that he feels quite sad for Hubbard .
"He is an elderly gentleman who has helped a lot of people over a number of years in business and I'm one of those people.
"We will be there for the long haul".
Not only do they fear the 83-year-old's health will deteriorate as a result of the stress, but say it's a question of intentions - that is, he never meant anyone any harm and was never in it for personal gain.
"There are no $50 million homes in Timaru owned by Mr Hubbard, there are no yachts moored off the Timaru harbour, there are no flash cars. He does not appear to me to have personally benefited from any of these claims against him".
But the fact remains that investors in both Aorangi Securities (AS) and Hubbard Management Funds (HMF) stand to lose money.
The most recent report from the statutory managers - who now control both funds - indicates investors in HMF stand to lose the most, around $30 million.
They have identified serious anomalies such as investments that simply did not exist.
In comparison to the likes of the failures of Hanover Finance and Bridgecorp, the sums are small - but the principle remains the same.
As hard as it might be to condemn the actions of a man with such good intentions like Hubbard - the allegations, if proved, are serious.
The best anecdote I can think of is this: Robin Hood stole from the rich to give to the poor - but he was still a thief.
If Hubbard did indeed do what the Serious Fraud Office alleges,
then he is in the wrong, even if his heart was in the right
place
Read more of Nadine's comment
