Money Managers Action Group

The Schemes

Money Managers developed a business model which promoted closed investment products, via its franchised network of ‘advisors’, to trusting clients.

The products were generally managed within the Group and often involved multiple related party transactions .

Money Managers schemes were marketed well but behind the scenes they resemble a Financial Frankenstein – designed in such a way that the promoters made guaranteed profits while the sad investors took all the risk, for little real reward and no control.

As an example, when DNZ Property was formed it had the following features:

• A management company was formed by three people (Somers Edgar, Paul Duffy & Alastair Hasell). This company signed an 20 year contract to provide management support in return for being paid an annual, multi million dollar commission.
• The management company controls the board (4 appointees to 2 for the investors)

With these simple steps a licence to print money was created – and investors have no influence over their investment.

Aside from DNZ the main investment schemes are all “closed” now having incurred substantially loses to Money Managers clients.

Current estimates put the losses at (exc Interest)

• First Step                                   ($233m)
• Orange Finance                       ($20m)
• Cash Plus
• Orange Insurance
• Totara Funding

(source www.moneymanagers.co.nz)