25 Jan 2012

Case lodged against Blue Chip auditors and directors

7:45 am on 25 January 2012

Liquidators of the failed Blue Chip group have taken the first steps in a $40 million law suit against its former auditors and directors.

Meltzer Mason Heath has lodged a statement of claim in the High Court at Auckland relating to about 800 investors who bought apartments in four central Auckland developments.

Blue Chip collapsed in 2008, owing about $80 million to 2000 small investors.

Its directors included former cabinet ministers Wyatt Creech and John Luxton, scheme founder Mark Bryers and lawyer Jock Irvine.

MMH partner Jeff Meltzer says deposits were not held in a separate trust account.

He says more proceedings could follow. The first judicial conference will be held in March when timetables will be set for defendants to file their defences.