20 Apr 2012

Hotchin fails to end freeze on his assets

5:03 pm on 20 April 2012

About 16,000 investors lost $550 million when the company collapsed.

The Financial Markets Authority (FMA) which incorporates the Securities Commission, sought the orders to freeze the assets, which the High Court granted in December 2010.

Mr Hotchin appealed against the order late last year, to overturn a freeze on valuable property held on his behalf through various trusts.

They include a multi-million dollar mansion on Auckland's Paritai Drive and a beach house on Waiheke Island.

But the Court of Appeal has now rejected the claim by Mr Hotchin.

The FMA says it is important to keep the assets frozen for investors, pending the outcome of civil proceedings filed against Hanover and its subsidiaries last month.