-
John D. Cutten - Source: Fair Go -
Watch Video
Reporter: Gordon Harcourt
This is a shocking story which emerged from my investigation into "Home Rescue", the Hamilton based outfit promising to prevent mortgagee sales.
Last week we met Barbara Charnley, 86 years old. She was persuaded to stop paying her BNZ mortgage, and start paying "Home Rescue". She paid them nearly $5000, and nearly lost her home because of it.
But the alarming part of the story is how she was introduced to Home Rescue in the first place. It was through a man offering her investment advice.
John D. Cutten
He's Auckland businessman John D. Cutten.
Over the last year, Barbara invested more than $90,000 with him. He says he put the money in a London based private trust, called International Managers Trust (IMT).
Absurdly high return
According to the documents Mr Cutten gave to Mrs Charnley, this
Trust pays "minimum annual return" of 50% "guaranteed". As at 1st
January 2008 it was paying 63.50% annual interest!
We can't find any evidence that IMT exists. There is no website or contact details. We asked Mr Cutten for details, but he said he wasn't permitted to provide any.
It's not registered with the relevant British agency, the Financial Services Authority. But it's the "guaranteed" return that is most unusual. It's an absurdly high return, and it's simply impossible to return any guarantee, let alone 50%.
Fake bank letters
Even more disturbingly, Mr Cutten gave Mrs Charnley a series of
letters, apparently confirming deposit of her money with Lloyds
Bank in London. Those letters are not genuine. ANZ National has
sent an email saying the documents were "not issued" by the bank.
Mr Cutten won't comment on that.
Big bag of cash
We have been urging Mr Cutten to return Mrs Charnley's money to
her. Initially he refused to do so, but last Friday afternoon he
and a friend turned up at Mrs Charnley's home. They brought $16,000
in cash - hundred dollar bills. Mrs Charnley's daughter was at the
meeting. She says they gave the money on condition Mrs Charnley
stop the Fair Go story, and a police investigation. Those things
aren't going to happen.
Mr Cutten told me he would be returning the full $91,000. We hope he does.
Police investigation
North Shore police confirm they have received a complaint.
If you or anyone you know has invested money with John D. Cutten,
we urge you to contact Police, and we want to hear from you
too.
