An Aorangi Securities investor is urging other investors to contact him over possible legal action against the Government.
The Government places Allan and Jean Hubbard, their companies Aorangi Securities and Hubbard Managed Funds, and seven charitable trusts, into in statutory management on June 20. Investors' funds have been frozen since.
Aorangi Securities and Hubbard Managed Funds investor Tony Brazier told the Timaru Herald he had met Wellington-based public law specialist Mai Chen on the matter and was convinced investors had a case.
"I am funding this work at my own expense because I am sick of feeling powerless and do not want to sit and wait to be told we may never see our investments again," he said.
Mr Brazier was meeting legal expenses but wanted other investors to join him in the fight.
"I reiterate that I am funding work on this matter, but there is more power if we act together in our shared interest," he told the newspaper.
Meanwhile, investors having trouble meeting living expenses have a mechanism set up by the statutory managers to address their needs.
Retired banker Dick Brown has been appointed by Grant Thornton, the statutory manager of Aorangi Securities, as an independent administrator to assess hardship cases for those who have had funds frozen.
In a letter to distressed investors, statutory manager Trevor Thornton said that those investors who needed to cover urgent living expenses should contact Mr Brown.
He will assess investors' needs and make recommendations to the statutory managers. For investors outside South Canterbury, a suitably qualified person in their area will be identified to make the assessment.
"We know that the placing of the funds into statutory management, and the subsequent 'freezing' of the investments, is stressful to many investors. We hope that the arrangements made will lessen that stress," Mr Thornton said.
Those who have urgent living expenses and have not yet contacted the statutory managers should do so, he said.
NZPA