Peter Huljich, Huljich Wealth face criminal charge

Peter Huljich and Huljich Wealth Management face criminal charges

Nov. 18 (BusinessDesk) – Peter Huljich and Huljich Wealth Management (New Zealand) Ltd. face criminal charges for allegedly misrepresenting the performance of the finance company’s KiwiSaver scheme.

The Securities Commission alleges Huljich and the firm that bears his family name failed to disclose related-party payments in offer documents for the Huljich KiwiSaver Scheme between 2008 and 2010.

The firm of Huljich boasts former Auckland mayor John Banks and former National Party leader Don Brash among its current and former directors. Banks is chairman and one of two directors listed on the Companies Office site along with Peter Huljich. Brash was chairman of the firm before Banks and in March took over as managing director as well, when Peter Huljich reassigned to take responsibility for the lapses.

The Commission alleges Peter Huljich and Huljich Wealth Management “misled prospective investors by misrepresenting the investment performance of the scheme's funds in offer documents.” They showed charts comparing the performance of Huljich with competing Kiwisaver funds while failing to disclose the related party payments made at the direction of Peter Huljich, the regulator said in a statement.

“Those payments had a significant impact on the Huljich KiwiSaver Funds' investment performance figures,” the commission said.

It also alleges that Peter Huljich made untrue statements in the scheme's registered prospectuses, which wrongly claimed the documents met New Zealand financial standards.

The false and misleading statements were made in the scheme's registered prospectus of August 2008, amended in February 2009, a prospectus in September 2009 and in investment statements from may 2008 through until January 2010.

The first call of the charges will be in the District Court in Auckland on Jan. 14, the commission’s statement says. It declined to make further comment.

Criminal charges under section 58(3) of the Securities Act 1978 which carries a maximum penalty of three months imprisonment or a $300,000 fine and under section 59(1)(c) of the Securities Act 1978 carry a maximum penalty of a fine of $300,000.

(BusinessDesk)

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