Wheels of justice grind slow on Hobbs case

Relevant offers

Money

ACC levies may climb again Consumer confidence up, but caution urged Gold bullion dealer's victims want information Student debt myths debunked Damages claims key to Hibernian funds recovery Loan sharks cruising poorest areas - report Auckland, Wellington expensive for expats SFO launches investigation into gold trader World Cup prompts shoppers to open wallets House sales rise, median price stable

It could be 2012 before the $60 million Australian case involving Nelson businessman David Hobbs goes to trial, his Nelson lawyer says.

Phil Bellamy, of the legal firm Duncan Cotterill, said the trial was likely to last for 10 weeks, and with the statement of defence not yet filed, it could be at least another year before space and a judge's time could be found to hear the civil case.

"It's taken three years to get to this point. It's one of those cases where the wheels of justice grind slow."

A directions hearing in the New South Wales Supreme Court on Friday set down October 15 for another hearing. Mr Bellamy said the statement of defence would be filed in time for that.

He said all the proceedings had now been consolidated into one, known as the PJCB proceeding. Some of the parties had been dropped from the case, but Mr Hobbs remained central to it.

The Australian Securities and Investment Commission alleges that Mr Hobbs masterminded an investment scheme that from 2002 took in around $60m from investors.

It alleges that he lacked a financial services licence, operated an unregistered financial service and "engaged in false, dishonest, misleading or deceptive conduct in relation to a financial product or financial service".

Court orders prohibit him from accessing funds held in 29 different accounts with financial institutions in Australia, Hong Kong, the United States and currency transfer firm Technocash, and the court has frozen his assets.

Mr Hobbs has strongly denied any wrongdoing and told The Nelson Mail he was absolutely confident his name would be cleared.

Meanwhile, Mr Hobbs has kept up his car dealing activities through Nelson dealership The Car Company. He has also become a licensed dealer, forestalling action against him by the Economic Development Ministry.

The ministry said in mid-June that it was writing to his company, Hobbs Trustee Ltd, to ask why it was not registered as a motor vehicle trader, as required of a person or company that sold more than six vehicles in 12 months.

At that time Hobbs Trustee Ltd had seven 2000-2010 Holden Commodores for sale through The Car Company's website, with a total value of $181,147.

Hobbs Trustee was registered as a motor vehicle trader on July 1 and the ministry said last week that it would not investigate him further.

A check on Tuesday showed Mr Hobbs had recently sold a number of Commodores to The Car Company, and still owned four being sold there on his behalf, with a total asking price of $95,996.

Hobbs Trustee bought one of the four it was now offering for sale from The Car Company on June 3.

The Car Company has six Commodores that it bought from Hobbs Trustee for sale, with a total asking price of $163,994.

One, a 2004 saloon being offered for $20,999, was sold by The Car Company to Hobbs Trustee on April 16, and then sold back to The Car Company on June 17.

Approached for comment on the purchase of vehicles from Mr Hobbs as recorded in registration records available through Motocheck, Car Company managing director Shane Drummond said, "Whose name a car's in is not meaning ownership."

He declined to answer questions about the 2004 saloon or his continuing association with Mr Hobbs, saying it was "absolutely none of your business".

Mr Hobbs' intention to buy the Stoke business Whitewall Color Wheel has apparently struck a delay, with Companies Office records yesterday showing it was still owned by Warren Watts, whose Echodale Place workshop adjoins Mr Hobbs' premises.

Mr Hobbs told The Nelson Mail in May that he would be taking the business over "in the next few weeks", having first said that it was already his.

In mid-June, Mr Watts confirmed the deal could be concluded in a month.

Mr Hobbs replied to a series of emailed questions about the court case, his car dealings and Whitewall Color Wheel with "Not your business" in response to each one.

- © Fairfax NZ News