John Malcolm Carr CPA (see photo:http://www.carr.co.nz/images/jmc.jpg ), an American businessman, faced eight criminal charges in Courtroom 2 of the Auckland District Court at 10AM on Tuesday 31 August 2010, involving offences he was alleged to have committed under the Financial Reporting Act 1993.
The charges relate to four companies that he is sole director of, that up until 16 December 2009 were ALL listed on the NZ Companies Office On-line Records (www.companies.govt.nz) as owned by a US-corporation Cuchara Inc. registered in Florida. The four NZ-registered companies are Velocity Partners Ltd, Shelf Company No 10 Ltd, First Virtual Deposit and Nominee Company Ltd, and PJ Digital Ltd: all owned by the foreign entity Cuchara Inc., that Mr John M Carr CPA directs. The name Cuchara Inc. was changed by John M Carr in 1999 to Carr Consulting P.A., but this change was not recorded on the NZ Companies Office Records as required by law until 16/12/2010 (see below).
On 19 October 2009 Mr John Carr’s operations officer, Deirdre Coker, changed Companies Office records of the registered office of Cuchara Inc. (the owner/shareholder of all four of Mr Carr’s companies), from Unit 13, 33-35 Apollo Drive, Mairangi Bay, Auckland to 22588 Scenic Loop Road, San Antonio, TX 78230-2253, USA. This change in address of the shareholder of Velocity Partners Ltd did NOT change the fact that all four companies John M Carr directed, had been owned and continued to be owned by the foreign registered corporation CUCHARA Inc.
Then on 16 December 2009 John M Carr changed the registered address of the shareholder of all four companies, Cuchara Inc., to 14/31 Greenlane Rd East, Remuera Auckland 1541 AND also changed the shareholder’s name to Carr Consulting PA. This change occurred just days after the SPCS published its December 2009 Newsletter highlighting these four companies and raising questions about his involvement in the funding of the NZ porn industry linked to his “business partner” Steve Crow.
(The Florida-registered corporation name Cuchara Inc was replaced with Carr Consulting PA in 1999 following an application to Florida State authorities by John M Carr CPA. Cuchara Inc. therefore became a defunct corporation name after 1999, yet John M Carr CPA continued to use it on the NZ Companies Office website as the shareholder of four NZ- registered companies he directed, for another nine years until 16/12/10!).
On the 12 May 2010 the Annual Returns for all four companies were filed and showed that the shareholder was no longer Carr Consulting PA (formerly Cuchara Inc.) – a Florida registered corporation. All four companies were now owned by John M Carr himself – who gave his residential address as 14/31 Greenlane East, Remuera, Auckland. However, this was NOT his correct residential address, but rather that of his operations officer. (The NZ National Enforcement Unit of the Companies Office was unable to locate him at this address from July 2009 onwards, when it sought unsuccessfully to serve legal papers on him. He never responded to mail sent to his recordd “residential address” during the course of their investigations of his companies). All these share record changes noted were made on-line by John M Carr on 20 April 2010.
Then on 20 September 2010 John M Carr CPA instructed his agent to change his recorded “residential address” on the Companies Office website, from 14/31 Greenlane East, Remuera, Auckland to 289 Cornish Point Road, Cromwell, 9384, for all four of these NZ-registered companies noted, that he directs.
The prosecution of directors of foreign-owned NZ-registered companies who commit offences against the Companies Act 1993 and Financial Reporting 1993, sends an important message, as has been recognised by the Overseas Investment Office as far back as 2005.
See: American landowner denies deceit and $1m profit. 16 November 2005. By Jarrod Booker
A wealthy US investor faced a charge in the Wellington District Court of failing to declare a conviction to the Overseas Investment Office. Illinois company owner Dick Schomburg was excused in negotiations on the charge that relates to the disclosure of a hunting-related conviction in his homeland when he sought to buy a $1.35 million share in Benmore sheep station, Canterbury.
Queenstown Lakes Mayor Clive Geddes said he was very encouraged that the office was taking a pro-active stance in ensuring foreign property owners met their obligations.
“I have a very clear view, that if people are able to come into this country – as they are entitled to – and to buy property and to enjoy the assets that we have here, then they need to understand they have to abide by exactly the same rules as the local people do,” Mr Geddes said.
“I think offshore investors have a higher obligation if anything.
“They are accessing a residential privilege and they need to ensure that they meet all the conditions of that.”
Many foreign buyers had gone on to live in the Queenstown Lakes area and proven themselves to be “exceptionally civic-minded people”.
“I don’t think anyone in the lakes district has a problem with people coming in from offshore and living here and contributing to the economy and community.”
* Legislation this year has increased tenfold the penalties for breaches of foreign investment rules.
* Investors can now be fined as much as $300,000 and can face up to 12 months in prison.
* The High Court can order the disposal of property owned by foreign investors and they can also lose the entire profit made on their investment, regardless of how large that might be.