The serious fraud office is investigating a failed Albany housing development.
Two companies involved in the 124-unit Gills Rd project went into liquidation before the project was finished. The land has been been sold to a new developer.
The development companies include Albany Heights Villas Ltd and Hunter Gills Road Ltd.
The investigation involves allegations investors' money wasn't held in trust, as they had believed it would be, and alleged misleading statements by the developers.
Many investors live overseas and their terms of agreements differ, says SFO acting chief executive Simon McArley.
"The legal structures of the investments offered are extremely complex. Our first task has been to get to the bottom of the legal implications of those agreements. Whether there is potential for criminal offending to be an issue will depend largely on the outcome of that analysis," he says.
The SFO is also urging all would-be investors to make careful checks before handing over large deposits towards developments that haven't been built.
Mr McArley says people must confirm the basis on which that money is held and the use it could be put to pending completion of the development.
Investors wishing to contact the SFO should call 0800 109 800 or email complaints@ sfo.govt.nz.
- © Fairfax NZ News
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