The Appeal Court, today ruled that the appointments of co-interim receiver-managers, including the auditing firm, Pricewaterhouse Coopers Limited, for the collapsed ponzi scheme, Cash Plus, four years ago, was legal.
Former Cash Plus Liquidator and Trustee in Bankruptcy, Hugh Wildman, had challenged the appointments of John Lee and Kevin Bandoian of Pricewaterhouse Coopers Limited, claiming the appointments were illegal under the Companies Act.
Mr Wildman had also challenged the nearly three hundred million dollar tab submitted by Pricewaterhouse Coopers Limited for its work in managing the assets of the collapsed ponzi scheme.
Lawyers representing Mr Bandoian claim that the employee who applied for the receivership is also an officer of the company, therefore the action is legal.
However, Mr Wildman who was appointed Cash Plus liquidator a year, later in 2009, had argued that the Court's decision to appoint the men, Pricewaterhouse Coopers and a former cash plus manager as receiver /managers was illegal.
He complained that Pricewaterhouse Coopers, being a corporate entity, could not properly act as receiver, nor be delegated receiver.
Mr Wildman further argued that the more than 275 million dollars in fees and expenses incurred by Pricewaterhouse Coopers, are illegal for being in breach of the Act, and represents an unlawful act of delegation of powers given by the court.
He had also fought the decision to allow the firm to sell cash plus assets to recover its fees.
Mr Wildman had maintained that Pricewaterhouse Coopers was not formally appointed by the Court as the receivers, therefore the fees incurred by the company, were not authorised and therefore cannot be recovered from Cash Plus.
However, the Appeal Court rejected his appeal and ruled that the appointments of the receiver/managers to employ the services of Pricewaterhouse Coopers was authorised by a single judge of the Supreme Court.
When contacted by RJR News, Mr Wildman who recently demitted office as liquidator told our newsroom that he's very disappointed with the ruling, and promised that he will be taking the matter all the way to the UK-based Privy Council.
Mr Wildman insists that the appointments were illegal and should not stand.
Cash plus investors lost more than 10 billion dollars in the ponzi scheme.
Mr Wildman declined to comment on how much money he had recovered during his tenure as liquidator.
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