Business format franchising is very useful in insulating owners from liability. One type of liability is when people, downstream, sue the corporation because of its alleged fraudulent dealings. Bryers set up +160 companies.
- Not many kiwi real estate investors are smiling as much as Bryers, a disbarred lawyer left, appears to be these days while biding his time in sunny Australia.
The New Zealand Herald and Jared Savage report on the latest attempts to bring Bryers to justice (Blue Chip founder faces 100 charges).
Criminal charges have been laid against Blue Chip co-founder Mark Bryers for his part in the property company’s $80 million collapse.
More than 100 charges have been laid against Bryers for alleged breaches of the Companies Act.
They follow a six-month inquiry ordered by the Registrar of Companies.
Bryers is living in Sydney, Australia running a similar type of real estate company. The Serious Fraud Office and Commerce Commission are also investigating.
More than 2,000 investors are out of pocket after 22 Blue Chip-related companies owing more than $80 million were put into liquidation last year.
Many investors are retired and face losing their homes.
About the only person working to try to recover any investor money is…
Paul Dale, an Auckland lawyer acting for many of the investors, said he was not surprised charges had been laid.
He welcomed the prosecution, but called on the Government to bail out those who stood to lose everything because of the Blue Chip collapse.
In a related story called Mark Bryers still gets rent cash, Rebecca Milne quotes a 67 year-old who as saying it’s too late for her and her 72 year-old husband:
“We’ve been to the doctor more in the last 12 months than we’ve ever been in our lives. We’re just so stressed about it all.
“We’ve already sold our home. We’re in a one-bedroom council flat. That’s all we’ve got.”
The New Zealand government has yet to explain how such a large-scale fraud could occur, let alone take steps to prevent it in the future.