Minister wades into $3m scam row

ROBERT KITCHIN/The Dominion Post

WADING IN: Ethnic Affairs Minister Chris Carter says victims of the Green Acres scam are still being treated in a 'devious and ruthless way' by the company.

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Ethnic Affairs Minister Chris Carter says Green Acres has treated victims of a scam in a "devious" and "ruthless" way.

Victims of a $3-$5 million ironing franchise scam are looking at taking legal action against Green Acres, the parent company involved. About 200 people bought non-existent ironing franchises from former "master franchisee" Keith Lapham.

The mainly Chinese and Indian immigrants paid up to $25,000 each for the bogus franchises, some getting into debt.

Seven members of Franchise Watch, the group set up to represent the victims, met Mr Carter at his Te Atatu electorate office on Saturday, The New Zealand Herald reported today.

He urged victims to get legal advice to take collective action and organised for Auckland Chinese lawyer Raymond Huo to meet them.

Mr Carter said Green Acres was attempting to split the defrauded franchisees up as a "strategy of reducing the potential pool of people they're going to eventually have to pay out to".

"They are being quite devious in trying to split the group, and they also, I understand, tried to separate those who have contracts that are already signed and those who have paid and not have the paperwork yet.

"They are, in my view, being quite ruthless in trying to cut down the amount of people with outstanding issues."

Mr Carter said he believed Green Acres was "incredibly exposed" as its website says Mr Lapham worked for them.

The company declined to comment.

National MP Pansy Wong also met several victims on Friday.

She felt the best way forward was for the police, the Commerce Commission and the Serious Fraud Office to pool their resources for the investigations and come up with a conclusion swiftly.

Green Acres chief executive Andrew Chisholm earlier this month ruled out financial compensation.

However, the company offered a rescue package under which victims were offered a new franchise if they could meet the company's qualifying criteria.

But the offer would require those who took it up to pay for uniforms and a vehicle which would have to display the company's logo.

- NZPA