8 Aug 2008

Blue Chip investors face mortgagee sale

2:46 pm on 8 August 2008

An elderly Taupo couple who are about to lose their home after a failed Blue Chip investment say they are the victims of a scam.

Blue Chip's crash in February affected about 2000 investors, whose losses are approaching $80 million.

John and Doreen Mather from Taupo are facing a mortgagee sale on their home after the equity was used to fund two apartments that were never built.

They understood their house would be safe because it was in a family trust.

Mr Mather says he is stuck with a $388,000 mortgage for a development that never went ahead. He describes the scheme as a giant sham that was full of lies.

He will appeal to Minister of Commerce Lianne Dalziel to try to halt the mortgagee sale.