While there is a groundswell of public support for 82-year-old Timaru-based Mr Hubbard, who has labelled the Government's ordering of Aorangi Securities and seven trusts into statutory management as "misguided", the SFO says the investigation is "of major importance to our financial markets" and is moving quickly to secure information and begin its scrutiny.
Other developments yesterday included another international ratings agency downgrade of South Canterbury Finance, and late yesterday, for the second time in two days, it removed its online prospectus to make amendments.
SFO chief executive Adam Feeley said in a statement yesterday the investigation into Aorangi was in the public interest, and "an investigation of suspected offences involving serious or complex fraud".
"This is an investigation of major importance to our financial markets, and the need for a thorough and fair investigation cannot be compromised by the understandable desire for early answers."
Myles Wealth Management principal Craig Myles said a southern investor with life savings of more than $1 million was referred to his company about a year ago by a lawyer for advice on retaining Aorangi-based investments.
"The investor was not covered by any [Crown deposit] guarantee. There was no secured position and no documentation," Mr Myles said.
He advised the investor, understood to be one of 400 from Otago and Southland, "not to leave his money in", but he understood the investor "stayed in".
Mr Feeley said the SFO had visited Aorangi's offices.
He would not comment further on the scope of the SFO inquiries, other than to say it would examine concerns raised by the Companies Office Registrar "whether any, or all, of the approximately $134 million of investors' funds deposited with Aorangi Securities Ltd had been received after proper disclosure, and whether those funds had been dealt with in a manner consistent with representations made to investors".
The investigation was likely to take several weeks, he said.
