And so I'd be spitting tacks at District Court judge James Weir were I one of the many who was burned by Hanover Finance.
Read the Herald and weep.
Mark Hotchin, director of Hanover Finance, and Kerry Finnigan, another director and CEO of Hanover, successfully were granted name suppression of that that they were among the victims of a Ponzi scheme.
Mr Hotchin said in his 2003 affidavit requesting name suppression that he believed if the facts of his having invested in the scams became known:Simply amazing.
- "There would be concern over the investment strategies adopted within the Hanover organisation because of the loss of credibility and damage to my reputation."
- "Investors and third parties with whom Hanover and its entities deal could well come to the conclusion that if one of the directors of Hanover was making inappropriate investment decisions personally then he could well be doing the same for the group. This in turn could cause a lack of investor confidence and support potential for a run on funds, the possible collapse or restructure of the Group with obvious impact on its 600 employees."
...
But there is no indication in the decision by District Court judge James Weir that the judge considered that investors and potential investors were entitled to the information to make a balanced assessment of their capabilities.
Mr Hotchin and Mr Finnigan were prominent figures in finance companies which failed. Together the ventures had a billion dollars of investors' money at risk.
Millions of dollars were invested in Hanover after name suppression was granted and at a time when its advertising was based on claims of prudence, careful strategies and the experience of its managers.
By suppressing an example of poor judgement by a co-owner and director and an executive director, Hanover investors were denied means to measure its claims of prudence and care.
The state can induce market failures, when it tries hard enough.
