Letters sent to Aorangi Securities investors appear to indicate the Serious Fraud Office is backing away from its investigation into the companies and trusts associated with Timaru businessman Allan Hubbard, supporters say.
The SFO has written to investors outlining its position, so far.
"To date, we have spoken to a selection of Aorangi investors. Our interest has been principally to ascertain the circumstances in which the investments were made and the terms on which those investments were offered.
"We do not propose to approach all investors."
However, if any investor wished to speak to the SFO regarding their investment with Aorangi or a related fund, they could contact the office through an 0800 phone number.
SFO director Adam Feeley told the Otago Daily Times yesterday that letters had been sent to all known investors in Aorangi and between 40 and 50 people had responded in "some manner" to the letters.
There was no time limit specified, but the SFO assumed that any investor wishing to make contact would do so within a relatively short period of time, he said.
Mr Feeley said in his letter to investors that the SFO was hoping to complete its interim report within the next three to four weeks but told the ODT there was no intention to release the interim report.
"The report is a confidential document prepared for the purpose of assessing the direction of the investigation," he said.
Paul Carruthers, who runs the website www.standbyhubbard.org, said he was aware the letters were being received by investors and believed it was evidence the SFO was stepping back from the investigation.
"The letter is clearly an indication the SFO is not investigating with the vigour it stated it would be at the start of the process.
"My take on it is that it is looking possible they won't find any evidence of fraud. Asking people to use an 0800 phone number, it's like booking a flight."
Supporters and investors had been frustrated by the "complete lack of transparency" from the SFO during its investigation, Mr Carruthers said.
Aorangi investors have been hit hard since their investments were frozen on the recommendation of the Securities Commission on June 20.
A Hubbard Support Fund Trust has raised $40,000 to help people in dire need of paying their bills and the statutory manager, Grant Thornton, has asked investors in need to be in contact so their circumstances can be assessed.
In a separate development yesterday, the standbyhubbard.org website published an open letter to Commerce Minister Simon Power claiming Securities Commission member Simon Botherway was responsible for the growing public perception that Mr Botherway had a conflict of interest in relation to Mr Hubbard.
On June 25, it was reported the commission was satisfied Mr Botherway did not have a conflict of interest in relation to Aorangi Securities, Allan or Jean Hubbard, or the charitable trusts subject to the commission's recommendation for statutory management.
The commission said Mr Botherway had declared to the commission that he might have a potential interest in matters relating directly to South Canterbury Finance - a company associated with Mr Hubbard but not in statutory management - because of previous business dealings between his brother and that company.
But it also said the statutory management order did not apply to SCF.
On that basis, it was satisfied Mr Botherway did not have a conflict of interest in relation to Aorangi, the Hubbards or the trusts involved in the recommendation.
It was reported that SCF placed Jonathan Botherway's hospitality business in receivership last year.
The letter from Hubbard supporters said there was no such thing as a potential conflict of interest.
"There is either a conflict of interest or there is not. Conflict of interest is not limited to pecuniary gain.
"It is impossible for the Government to say with complete certainty that there was no conflict of interest in this matter and to do so is untruthful."
The Hubbard supporters were unable to accept any adverse findings in any reports produced about the financial situation of the various Hubbard entities, due to the conflict of interest in question, the letter said.
The supporters group called for Mr Power to sack Mr Botherway and commission chairwoman Jane Diplock and called for funding to be provided for a completely independent audit of the findings of the investigation into the Hubbards.
