Court hears Ponzi allegations in NZ dispute
Claims services company WorldClaim New Zealand has won a court ruling requiring a director to hand over his phone, computer and other devices as it investigates his handling of claims and client funds following the Canterbury earthquakes.
Affidavit evidence to the High Court at Christchurch alleges Guy Edward Sayers did not account to the company for all clients and commissions, and engaged in unauthorised business activities.
The activities allegedly include directing money towards Arena Capital, which turned out to be operating a Ponzi scheme and was placed into liquidation on July 24 2015.
“There is evidence Mr Sayers encouraged WorldClaim NZ clients who had come into funds to make investments in Arena Capital,” a ruling by Justice Rachel Dunningham says.
“Furthermore, at least one of these emails shows Mr Sayers received a commission from Arena Capital, which he directed to be paid to his personal BNZ account.”
The New Zealand branch of US-based WorldClaim Global, which acts for policyholders on claims, was set up in Christchurch after the quakes.
It was initially busy but the judgement says work has since tailed off and Mr Sayers is the only remaining WorldClaim Global secondee to the New Zealand operation.
The court heard Mr Sayers had not updated the company’s database with client, commission, fee and other details after an administrative staff member left in 2015.
WorldClaim NZ was granted search and freezing orders and an interim injunction against Mr Sayers and three companies he established in New Zealand to protect potential evidence and preserve assets as it considers a claim for breach of duties and fraud.
The two parties are also involved in a separate dispute over commissions, with Mr Sayers, issuing a statutory demand in April for about $NZ208,071 ($199,752).