As part of a strategy to take control of the company and premises, James facilitated borrowing of around $1.3 million dollars from PFL Finance Ltd and the setup of a finance company, HES Finance Ltd. He then secretly negotiated with the BNZ, purchased the loans for the company and the premises at 153 Madras St and assigned them to HES Finance Ltd. A receiver was appointed, who FORCED the company into receivership and FORCED the sale of the business by tender. After James lost the tender, he FORCED the mortgagee sale of 153 Madras St.
In his liquidation judgement, Judge Doherty stated in point [3] b), "The second defendant has purchased the security interest of Heat Exchanger Services Limited's bankers and by machination appointed a receiver"
Memorandum of meeting regarding strategy for James to take control of the company and premises, depriving Julian
HES Finance Ltd company extract
Land register showing HES Finance and PFL Finance mortgage entries for 153 Madras St
Diagram and notes of BNZ loans assignment
BNZ loans Deed of Assignment
Letter and email from BNZ and James repay request
Judge Doherty's liquidation judgement
Julian and his wife were made "redundant" by the receiver claiming they were not contributing to the business, despite the fact that James had illegally locked them out, preventing them from working in the business.
The receiver failed to pay outstanding salary, wages and holiday pay owing to them at the time.
Even after the business was sold, and the employees, James and his wife were paid their outstanding salary, wages and holiday pay, the receiver still did not pay outstanding salary, wages and holiday pay owing to Julian and his wife. Only many months later after Julian and his wife resorted to going to their MP, Jim Anderton, and after excuses from the receiver, did the receiver pay them what was owed within the limits of the receivership. Julian is still owed many $10,000s of salary.
Julian's wife was made redundant. James then employed the services of other people to do the work she did. Julian's wife was unfairly dismissed.
China communication / translation expenses in MYOB accounts
After the sale of Heat Exchanger Services, the Receiver claimed that jobs still in the workshop were completed and invoiced and he should be paid for them. On the day of settlement, 22/10/10, they were not clearly stated as so, no invoices were provided as proof and no arrangements were made to ensure they were excluded from the sale.
On the settlement day an image copy of the accounts computer was taken and the jobs book were copied.
The MYOB on the accounts computer and the jobs books copies supported the claim against the Receiver that all but 2 of the jobs had not been invoiced. The 2 jobs were cash jobs that had not been paid for prior to settlement.
The Receiver took the dispute to the disputes tribunal in October 2011.
Copies of the Receiver's "invoices" were obtained from a number of the customers. One was dated 29/10/10, 7 days after the sale!
At the disputes tribunal hearing, the Receiver presented invoices from Gayle that, when compared to the invoice copies from the customers, clearly showed that the invoices Gayle had provided to the Receiver had been fabricated (the tribunal referee's word).
The evidence showed that the jobs were not invoiced prior to settlement and that Gayle and the Receiver had presented fabricated evidence in an attempt to cover up attempted fraud.
Fabricated (1st & 3rd pages) and customer (2nd & 4th pages) invoices