Low-Ball Share Buyer Who Promised 20% Returns Now Faces Regulator Investigation
New Zealand's financial regulator has placed six companies affiliated with controversial investor Bernard Whimp under interim liquidation, launching an investigation into an operation that promised investors annual returns of 20% or better. The Financial Markets Authority (FMA) secured court approval to appoint liquidators after Whimp's Chance Voight Investment Corporation and related entities came under scrutiny for potentially misleading investment schemes.
The probe targets Whimp, who gained notoriety more than a decade ago for making unsolicited "low-ball" offers to shareholders in major companies including Contact Energy and Fletcher Building. Those offers drew criticism from market observers who argued they exploited unsuspecting investors unfamiliar with their shares' true value. Now, his latest venture faces regulatory action amid concerns about investor protection and financial market integrity.
Background and Context
The investigation against Chance Voight Group represents the latest chapter in Whimp's long-running battles with New Zealand's financial regulators. His previous activities prompted intervention from the Securities Commission—the FMA's predecessor—which ordered him to correct misleading offers and secured court injunctions to halt share transfers to limited partnerships he controlled. The current probe unfolds against a backdrop of rising financial misconduct in New Zealand, where fraud complaints have jumped 40% and the Serious Fraud Office handled cases involving $174 million across COVID relief schemes, kickback corruption, and public sector theft.
In 2021, Whimp launched Chance Voight Investment Partners, promoting it as a hedge fund targeting bargains in the Australian sharemarket. The operation specifically sought "eligible" investors with high investment knowledge to participate in "unregulated offers" with promised returns of 20% annually or better. The acquisition of Patterson Wealth Partners Limited—a licensed financial advice provider—by a Chance Voight subsidiary in November, just weeks before the liquidation proceedings, has added complexity to the regulatory investigation.
Key Figures and Entities
Bernard Whimp, the principal figure behind Chance Voight, has consistently defended his business practices while attracting regulatory attention throughout his career. According to New Zealand's Companies Office, Chance Voight Investment Corporation is based on Cone Street in Rangiora near Christchurch, with 33 shareholders including a trustee company, Whimp himself, and several private investors.
Three partners from PwC New Zealand—Malcolm Hollis, John Fisk, and Lara Bennett—were appointed as interim liquidators on December 10 for six entities: Chance Voight Investment Corporation Limited, Chance Voight Investment Partners Limited, CVI Securities Limited, CVI Financial Limited, CVI Partners Mortgage Fund Limited, and CVI Partners Mortgage Income Fund Limited. The liquidators will now examine the financial affairs and transactions of these entities as part of the FMA's investigation.
Legal and Financial Mechanisms
The FMA's investigation employs several legal mechanisms to scrutinize Chance Voight's operations. Court suppression orders and an FMA confidentiality order currently limit public disclosure of specific allegations, though the regulator has confirmed it targets the investment firm, its subsidiaries, and individuals connected to the Chance Voight Group. The interim liquidation process allows investigators to preserve assets, examine financial records, and interview relevant parties while considering potential enforcement actions.
Whimp's business model historically involved identifying undervalued shares in publicly traded companies and making unsolicited offers directly to retail shareholders. Critics argued this approach exploited information asymmetries between sophisticated investors and ordinary shareholders, particularly targeting elderly or less financially experienced investors. The current investigation likely examines whether similar tactics were employed in Chance Voight's investment offerings and whether promised returns were achievable or properly disclosed.
International Implications and Policy Response
The Chance Voight case highlights ongoing challenges in regulating investment schemes that operate across jurisdictional boundaries, particularly those involving complex corporate structures and cross-border transactions. New Zealand authorities have become increasingly concerned about sophisticated scams targeting local investors, with approximately $265 million drained from victims through schemes exploiting online payment systems and personal banking details. Fraudsters have adapted newer tactics, including impersonating prominent financial figures using AI-generated videos on platforms like WhatsApp.
The case may prompt renewed debate about investor protection regulations in New Zealand, particularly regarding "eligible investor" classifications that allow certain offerings to circumvent full prospectus requirements. Policy makers have been considering reforms to strengthen oversight of financial advice and investment products, with the Financial Markets Conduct Act undergoing periodic review to address emerging risks in an increasingly digital investment landscape.
Sources
This report draws on court filings obtained by journalists, statements from the Financial Markets Authority, corporate records from New Zealand's Companies Office, and interviews with Bernard Whimp published in The Post NZ. Additional context comes from previous regulatory actions by the Securities Commission and public reporting on New Zealand's financial enforcement landscape between 2019 and 2024.
