Call for Government to Freeze Blue Chip Crisis

The Independent newspaper today exposed, EUFAs (Exposing Unacceptable Financial Advice) concerns surrounding the Legal advice given to investors by so called “independent lawyers”.

It is totally wrong to expect the investors who have lost everything to fund legal action when their Lawyers were either party to the dealings or negligent when advising the investor. In most cases Investors were advised to execute documents that failed to protect the client/investor. Lawyers poked documents under clients noses to sign here, “sign here” .... “sign here”.... “sign here”.... with out warning the Investor of the detail. Many investors did not know they were signing a waiver of rights that they would normally be entitled to under such contracts. They were conned!

There is a raft of practices, such as deposits being paid out from Lawyers trust accounts and in some cases full payments for properties were made that investors were not aware of.

Gray Eatwell, Finance Spokesman for EUFA, said from Auckland today “Due to the fact that a number of Lawyers were involved and that the Investors can not afford Legal representation, the Government must freeze the situation to allow time for an effect remedy to be delivered” He added “The Government must provide the natural right of legal protection. In NZ we have a fundamental right to be protected from such practices.”

Coordinator of EUFA, Mrs Suzanne Edmonds, said from Auckland this morning “Blue Chip Investors stand to lose everything while the perpetrators could win by default and continue to live the high life while the victims suffer.”

Mrs Edmonds Added “People are panic selling their homes and this should not be happening. Decent hard working New Zealanders deserve to be protected by the State from these burglars”.