Now it is the turn of Mutual Finance to be investigated by the Serious Fraud Office. It is the latest finance company which has been taken into the investigation process.

According to the SFO, the investigation of this company was started on December 23 under part II of the SFO Act. This was done after the consent obtained from Mutual Finance's receiver and from the National Enforcement Unit.

The SFO alleged that there was an aim to inspect the affairs of Mutual Finance and related companies. It was suspected to reveal serious or complex fraud.

In May 1997 the Mutual Finance was built-in to provide financial and lending services in Auckland through debt securities to the public.

Unfortunately, the Company collapsed in July and near about 450 investors were owed about $17 million. The company was division of the Crown Retail Deposit Guarantee Scheme. Out of $17 million, $16.6 million was previously paid out under that guarantee.

Mutual Finance was directed not only by 80% shareholder but also former Strategic Finance founder Paul Bublitz. He was also concerned with an Auckland company, Hunter Capital. Further this company was involved with another finance company named as Viaduct Capital.