Businessman Allan Hubbard is adamant he did not borrow from Aorangi Securities to invest other entities.
The Government has placed Mr Hubbard and his wife, Margaret, under statutory management, along with Aorangi Securities and seven trusts.
Aorangi Securities is also under investigation by the Serious Fraud Office, following a Companies Office report that found irregularities among Aorangi's $134 million in loans.
Some of these relate to the alleged use of Aorangi funds to invest in the trusts.
Mr Hubbard said that's not the case, as the funds were his in the first place. He says he then had them transferred to the trusts ahead of Aorangi issuing a prospectus.
He told Radio New Zealand's business editor he "never borrowed" and it was "always kosher".
