Almost a month ago, Mr and Mrs Hubbard and eight business entities were placed under statutory management by the Government, including Aorangi Securities Ltd with about $96 million of investors' funds, while last week the assets of Hubbard Management Funds, estimated at about $70 million, were frozen by the same managers.
The Serious Fraud Office is also investigating Aorangi Securities Ltd.
The proceedings against Mr and Mrs Hubbard have sparked outrage in his hometown of Timaru from a number of loyal supporters, many of whom have dealt with 82-year-old Mr Hubbard for decades.
Wellington lawyer Tim Clarke, of Russel McVeagh, was contacted last week and confirmed he had been engaged by Mr Hubbard and his wife Margaret "in relation to their statutory management".
However, Mr Clarke declined to comment further on any details.
Craigs Investment Partners broker Peter McIntyre said he would "not be surprised" if Mr Hubbard "contested" having been placed under statutory management.
"He may well feel he has been treated unfairly with the course of action taken against him," Mr McIntyre said.
However, Mr McIntyre noted the statutory managers' first report, released last week, aired many concerns surrounding loan impairment, lack of registered securities and also claimed inadequate accounting systems were in place.
