Beware: Green Gardens Finance
The Financial Markets Authority has issued its first ever stop order against Green Gardens Finance Trust, which it says was offering investments illegally, trying to raise money for property development in Auckland.
Tuesday, July 28th 2015, 12:41PM
by Miriam Bell
FMA director of regulation Liam Mason has warned the public to be wary of doing business or depositing money with Green Gardens Finance Trust.
“Green Gardens Finance is offering investments illegally and this stop order requires the company to comply with the relevant laws and warns people not to give money to the company.”
Under the Financial Markets Conduct Act, the FMA can issue a stop order if someone is offering investments without complying with the law.
Mason said the stop order against Green Gardens Finance Trust was due to concerns about the website http://ggfinance.co.nz and the offers of debt securities advertised on it.
Green Gardens Finance Trust, which changed its name from Southpac Finance Trust earlier this year, has been operating in the Auckland property investment market.
While the company’s website is now bare except for a “coming soon” sign, it was apparently offering a 12% return on deposits locked in for three years.
According to reports, the scheme had a minimum buy-in of $50,000 which the company claimed was guaranteed against properties it invested in.
However, the stop order prohibits Green Gardens Finance Trust from offering, issuing, accepting applications for, or advertising debt securities.
It also prohibits the company from accepting further contributions, investments or deposits for debt securities.
Mason said that it is an offence to fail to comply with a stop order.
Anyone who has invested funds with Green Gardens Finance Trust should contact the FMA on 0800 434 567 or online here.
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