New Zealand's Financial Markets Authority (FMA) is investigating Christchurch-based Chance Voight Investment Corporation and affiliated entities, after securing court approval to place six of the firm's companies under interim liquidation.
The investigation targets the investment operation of Bernard Whimp, who gained notoriety over a decade ago for making unsolicited "low-ball" offers to shareholders in major companies, including Contact Energy and Fletcher Building. Those controversial offers drew criticism for allegedly preying on naive investors who didn't understand the true value of their shares.
Three PwC partners - Malcolm Hollis, John Fisk and Lara Bennett - took over as interim liquidators on December 10 for six entities: Chance Voight Investment Corporation Limited, Chance Voight Investment Partners Limited, CVI Securities Limited, CVI Financial Limited, CVI Partners Mortgage Fund Limited, and CVI Partners Mortgage Income Fund Limited.
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The FMA confirmed the probe targets the investment firm, its subsidiaries, and individuals connected to the Chance Voight Group, but won't elaborate on specifics due to court suppression orders and an FMA confidentiality order.
Whimp Vows to Fight Liquidation
Bernard Whimp told The Post NZ he plans to challenge the liquidation proceedings. "Absolutely we are challenging the liquidation," he said, calling the regulator's action a "fantastic 'dog' act."
Whimp added that he would provide more commentary in coming days, stating: "Leaders must lead at all times and in all circumstances, for me it's just another D-Day on the Normandy beaches."
The Chance Voight probe adds to a growing list of enforcement actions in New Zealand's financial sector. The country has seen a sharp uptick in financial misconduct cases, with fraud complaints jumping 40% as the Serious Fraud Office handled 174 million dollars in cases across COVID relief schemes, kickback corruption and public sector theft.
Past Regulatory Battles and Hedge Fund Ambitions
Whimp's history with regulators stretches back years. The Securities Commission (predecessor to the FMA) previously ordered him to correct misleading offers and secured court injunctions to stop share transfers to limited partnerships he controlled.
In 2021, Whimp launched Chance Voight Investment Partners, promoting it as a hedge fund targeting bargains in the Australian sharemarket. He aimed to attract "eligible" investors with high investment knowledge to participate in "unregulated offers," promising to compound investor capital at 20% annually or better.
The investigation got murkier when a Chance Voight subsidiary acquired Patterson Wealth Partners Limited, a licensed financial advice provider in November, just weeks before the liquidation proceedings.
Regulatory Pressure Mounts in New Zealand
Scammers have become increasingly sophisticated in targeting New Zealanders. A total of 265 million dollars was drained from victims through schemes that exploit both online payment systems and personal banking details. Fraudsters have also adapted newer tactics, with fake Facebook celebrities stealing real money on WhatsApp by impersonating prominent financial figures using AI-generated videos.
Meanwhile, two "investors" fooled 55 people from New Zealand for seven years, with a married couple convincing victims from the local community that they were experienced traders while actually using new funds to pay earlier investors and cover personal expenses.
Chance Voight Investment Corporation is based in Cone Street in Rangiora near Christchurch. The Companies Office lists 33 shareholders including a trustee company, Whimp, and several private investors.
