Editorial: No room for kangaroo courts

OPINION: A large number of vulnerable New Zealanders were caught out with the failure of a string of finance companies in the past few years.

It is only natural that there will be a level of animosity towards those thought to be responsible for the losses sustained by thousands of out-of-pocket investors.

Investors were also let down by poor financial advice and a lack of scrutiny by the Government, which had been warned repeatedly about the parlous state of the industry. Ultimately, they were let down by their own judgment by choosing to chase high interest returns from organisations with risky investment profiles.

Two recent ugly incidents show that there is a still a large degree of anger out there which, if anything, is increasing rather than gradually fading away.

In the most recent incident Rod Petricevic, the former chief of failed investment outfit Bridgecorp, was reportedly "roughed up" in a bar and restaurant.

Patrons, according to one report, told Mr Petricevic what they thought of him and at one point he was physically attacked.

The attack on Mr Petricevic is unforgivable. Investors cannot take the law into their hands, no matter how severely they feel provoked.

Mr Petricevic will go on trial next year over his role in the collapse of Bridgecorp, which failed with $450 million of investors' funds. Our legal system was set up to deal fairly with people accused of crimes. Mr Petricevic will have his day in court, and consumers can rest assured that, if he is found guilty, he will be dealt with appropriately. In the meantime Mr Petricevic should be allowed to go about his lawful business without fear.

The second incident involved the targeting of Hanover co-founder Mark Hotchin. Mr Hotchin's finance firm failed last year with $554 million owed to 17,000 investors.

Hell Pizza, a fast food outfit which likes to court controversy through provocative publicity stunts, has parked a mobile billboard outside Mr Hotchin's expensive home with Greed and his picture on it.

Hell has claimed the moral high ground. The company said public sympathy was on its side, pointing out that thousands had lost out while Mr Hotchin continued to live like a "Rockefeller."

This incident is arguably even more distasteful than the attack on Mr Petricevic.

The pizza company is exploiting the anger of investors to publicise its brand. It is nothing more than a cynical marketing ploy. Again, if Mr Hotchin is found to have done something wrong, he should be dealt with by our legal system. Hell is doing little more than setting up a kangaroo court which, in reality, will not hurt Mr Hotchin one jot.

Consumers are not stupid and will see the cynical and calculated stunt for what it is. It is more likely to turn consumers off the pizza brand than to lead to extra pizza sales. Hell has been told to cease and desist and so it should. The Hotchin and Petricevic incidents have no place in a civilised democracy such as New Zealand.

- © Fairfax NZ News