Neville Mahon, and the big Fiji Con                       Site last updated Jan 25, 2013 at 5.20PM AEST                                                                               UPDATES: Updates will be shown in ascending sequence as events unfold
                                                                                                                                              Mahon to take legal action against Wikifrauds
                                                                                                                   IMPORTANT MESSAGE TO VILLA OWNERS: Villa Owners Class Action
 
MAHON FAILS: This page was previously banned by a temporary injunction obtained by Neville Mahon in December 2011.  Wikifrauds vigouously defended the matter in the NSW Supreme Court, and the injunction has been dissolved  by Supreme Court Justice McCallum J today, January 25, 2013.

More on this battle with Mahon will follow in the next few days.
                                                                                                            
                   Warning!  People who might be considering dealings with Neville Mahon of New Zealand, and any of his Denarau Companies should read this carefully.
This includes various bankers and funders with current interests in Mahon's affairs, particularly those parties now apparently involved with Mahon's latest manoevres.



                   
    Mahon, smiles over a model of his Fiji Hilton Hotel as he ruins lives       Mahon's playwright, lawyer Greg Shanahan   Confessed cheat, Andy Haden        
  Neville Christopher Mahon and his companies:
and. . .The cast of this Shakespearian fiasco:
                                   Starring . . . .                            Keep an eye on the cast, new actors (in red) are being added from time to time.
Bank of Scotland (BOSI)
Allco
Strategic Nominees Ltd
South Canterbury Finance
 Anderson Creagh Lai - Greg Shanahan
Korda Mentha NZ
McGrath Nicoll
Hilton Hotels - Ashley Spencer
Price Waterhouse Coopers
Gleneagles Securities
Westpac Bank
Courts Fiji Limited (Vision Group) Mr. P L Munasinghe
The Fiji Judicial System (or lack of it)
Andy Haden, former All Blacks star, and self-confessed cheat.
John Bongard, former CEO of Fisher and Paykel
Denarau Hilton Villa Owners Pty Ltd., and the Individual Villa Owners (the 'Good Guy' victims)

                          Produced and Directed by Neville Mahon . . . The Bad Guy.
                                                              Screenplay by Gregory Shanahan

                                        The plot in a nutshell. . . (spread over two or three years)
  • The bad guy Mahon builds the Fiji Hilton under one company.
  • Mahon assigns management of the hotel to another Mahon company.
  • Mahon's development company does a deal with Hilton Hotels to run the resort on a day-to-day basis.
  • Mahon's development company sells villas to individual owners - ordinary mum and dad investors.
  • Mahon's development company begins to have financial trouble.
  • Mahon then begins to divert rental income from villa owners and uses it in capital works for completion of the staged construction. Hilton continue to receive their share of rental income.
  • The bad guy's development company is put into outside management by receivers Korda Mentha, appointed by Strategic Nominees, a subsidiary of Allco who is now also under receivership by Bank of Scotland, who themselves are in big trouble.
  • The 160 or so villa owners continue to be denied their rightful rental income while the receivers and Mahon's management company appropriate incoming fees. Hilton, sitting on the fence, still get their income and share of operating profit. The receivers get away with charging whatever fees they like to administer the development companies affairs, and become the real operators of the resort.
  • The receivers begin to look at potential buyers of the development company.
  • The villa owners seek to wind up the development company in the Fiji courts.
  • Villa owners also seek to lockup their own villas to deny receivers further 'free income'. After all, the units themselves DO NOT belong to the receivers, yet the receivers have treated the villas as if they belonged to the failed development company. The receivers counter with threatened legal action. (See letter to villa owners)
  • However, the villa owners DO SUCCEED in having certain bank accounts frozen by court order - it is their income under the agreement with the Mahon's company.
  • The receivers continully block all moves to wind up the development company, and use the almost defunct Fiji legal system to deny natural justice for the villa owners. They are collectively now owed some $8 million in rental income and individul owners are under pressure by their own mortgagees to repay their own debts on their own title leases.
  • Hilton Hotels, still on the fence, continue to get their share of income and profit.
  • A "back-door"deal is proposed by Mahon (who is already under default to the tune of NZ$100M under various other guarantees) in which a new company he has registered in the Virgin Islands (MBH) does a joint venture with Fiji company Vision Group Ltd. Mahon, hidden behind a Chinese Wall, is to hold approximately 50% of this new Vision entity.
  • A deal is struck with Westpac in Australia for Vision Group to fund the purchase of the security held by BoS and Strategic for about half its face value. This will leave these receivers out of the loop altogether and give Mahon effective 'back door' access to the frozen funds belonging to the villa owners....  but, there are OTHER receivers at work here. The plot thickens.
  • It is understood from documents made available to us that Mahon, through a nominated trustee in one Mr Chan Dantley of Hong Kong, owns MBH  - his Virgin Islands front company. MBH has received some $3 Million deposit from Vision Group for the aquisition of the current debenture held by Strategic. A deal being financed by Westpac and orchestrated by Mahon through Sydney firm Gleneagles Securities. Mahon it seems will  pocket $1 Million, and the remaining $2 Million is to be allegedly paid to BoS. Seems there has been a lot of wheeling and dealing behind the scenes, and it will all come out before the play is ended. And the front seat audience is likely to be one or more Supreme Courts.
                                                       The end of this tragedy is yet to be written.
And the ending will include the parts played some of the corrupt cast and the collusion that has taken place to this point, including allegations of attempted bribery by certain Fiji lawyers and under the table deals within the banking industry. This play could well end up being a two hour TV mini-series.

A note to the Director Producer:
What has been suggested as the plot so far is only part of the screenplay. The writers have twice the material at their disposal to weave into this story than has thus far been suggested. Among this are interesting conversations and so-called confidential emails. Totally incriminating evidence of the bad guy's power plays. The ending is bound to be spectacular and a not too happy one for the villain and some of the conspirators.
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Updates
Dec 02, 2011: Neville Mahon is to take legal action in seeking an injunction in the Sydney Supreme Court next week to restrain Wikifrauds and have this "defamatory" webpage pulled down. If you are an angry villa owner and would like to support us in keeping this page going, please contact us urgently and we will advise you on how you can assist us. Contact us.  You cannot allow Mahon to succeed in this attempt to hide the truth.
Update Jan 25, 2013   - He tried, obtained the injunction, and it has now been dissolved. He has therefore failed.  See note at header of page.
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Villa Owners Class Action: The Denarau Hilton Villa Owners Pty Ltd has engaged a Melbourne law firm to commence a class action against various parties. The law firm has published a secure website for villa owners to submit certain information. This website, whilst active now, is to be further enhanced in coming days and a link will be provided and villa owners advised. A senior barrister has been engaged already, and work has commenced in investiagiting jurisdictional issues, and on the preparation of a Statement of Claim against various parties. Villa owners are encouraged most strongly to support this action. At risk is all the owners income that has been frozen in Fiji (estimated at between $8 and 10 Million), and your future returns being reduced from the agreed 50% to somewhere between 30% and 35% of the resort's income.

At this point in time, the Wikifrauds webpage is vulnerable. If the villa owners fail to get behind both Wikifrauds and the class action that is commencing, then the frozen money will be lost, and you will all be subject to a reduction in rental income, and further adhoc, non-transparent deductions without any accounting from Mahon or his cronies at Vision or elsewhere. Not at all what you envisaged when you first invested in this developement.
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Nov 30, 2011: No matter what the documents and contracts may show, Neville Mahon is clearly now in total control over the Fiji Hilton. His trail of involvement is now crystal-clear to follow. He has allowed mistakes from his involved partners in this crime. Mistakes such as his name being mentioned as the controller of negotiations with Vision and others in certain emails from his lawyer Greg Shannahan. And again, Mahon is named in an email dated November 29 from former All Black Andy Haden, the disgraced and self-confessed cheat, as now having a 40% stake in the resort that has cost investors hundred's of millions, and villa owners a substantial loss of income as well as a devaluation of their villas. Haden, a villa owner himself, also runs invitation golf days in September each year and the guests use the resort. The cream from these golf days is bolstered by discounts in the accommodation rates to these guests in a long-standing deal with his friend Mahon. The villa owners have never received an accounting of this arrangement, nor any other non-transparent arrangements made by Mahon. It is patently obvious that Mahon considers the resort as his personal asset to manipulate as he sees fit, regardless of the actual owner's rights.

Now, under the cover of Haden and former Fisher and Paykel CEO John Bongard's names, Mahon has issued what is nothing more than an ultimatum to villa owners to accept a whole new deal. They are all expected to just simply sign up for a 30 - 35% share of rental income or else! The original agreement is 50% of income, but given the mess created by Mahon and the receivers of DIL, Korda Mentha, the villa owners have not received any payments for over two years except for a payment for Q3 2011, and that was arbitrarily trimmed back to 35% with no explanation or prior consultation. And all this is happening with the knowledge and presumably prior aproval of Hilton Hotels and their Australian-based regional manager, Ashly Spencer. It could not have hapened without their input.

The ultimatum email is pasted below. Not a word has been changed by Wikifrauds:

November 29th 2011.
Dear Villa Owners,
We last communicated with you at the end of August as we tried to avoid what was being circulated as an expensive, protracted and most likely to be unsuccessful way of dealing with financial issues of the past that affected Villa Owners. The issues of concern were predominantly the unpaid income dating back to the period before DIL went into receivership. We suggested, as an alternative to Litigation, that we would approach the Receivers in a fair and reasonable manner and propose that they make a one-off payment that would wipe the slate clean so to speak. We received 80 positive responses from Villa Owners to this suggestion and 1 negative response.
Soon after writing we became aware that a sale was imminent and we didn’t proceed with the proposed negotiation with KordaMentha. We are all now aware that the Vision Group acquired a 60% interest in Denarau Investments Limited, the developer of the Hotel and a 60% interest in Denarau International limited, the manager of the Hotel. At the same time the securities of BOS International (Australia) Limited, Strategic Nominees Limited (in Receivership) and South Canterbury Finance Limited (in Receivership) were all settled and the Receivers were removed.
As soon as that deal had been done we felt that it was prudent to approach the new owners (the Vision Group) with the same request we intended making to the Receivers. Strike while the iron was hot if you like.
Mr P L Munasinghe – Chief Executive of Vision Group - was very receptive to our approach and even though he made it quite clear that the new owners believe that they have no legal obligation to make good any of the past, he agrees, as a goodwill gesture, that the Vision Group would consider our request and make payments that would draw a line under the past and start afresh with any or all of us that wanted to move on. The Vision group have confirmed that there was no Villa Owner ‘fund’ held by KM that formed part of the negotiation that Vision Group went through to purchase the Resort.
The payments that the Vision group are prepared to make are as follows:
·         FJD $10,000 for the Owners of each of the Studio and 1 Bedroom Villas,
·         FJD $15,000 for all 2 Bedroom Owners; and
                 ·         FJD $20,000 for owners with 3 Bedroom Villas and above.
All payments plus VAT.
Please reply by December 9th if you are prepared to accept this offer and we will pass your response on to the Vision Group to formalise settlement before Christmas.
Should you not wish to agree to this amount Vision has indicated that this window of opportunity will not be open again and you will be addressed in the same manner as an unsecured creditor from the past.
We also, during our three meetings with the Vision group, took the opportunity to put some other Villa Owner issues on the table.
  1. Improved Villa Owner booking procedures and shorter, more Owner friendly, lead times for bookings.
  2. Minimise Villa Cleaning charges wherever possible and come up with a different payment option for cleaning costs.
  3. Enforce an Adults only pool and a relook at the gymnasium issues raised in the past.
  4. Make a commitment to a timeframe for the completion of buildings, pools, restaurants etc. stage by stage.
  5. Find out the Vision Groups intentions as far as an Hotel refurbishment programme is concerned.
Mr P L Munasinghe has promised to address these issues within the next few weeks and has agreed to come up with some suggested solutions that we can discuss and circulate and hopefully agree on.
Mr P L Munasinghe also explained very clearly why the 50% payout could not and would not be made as suggested by the Receivers in their parting letter. Given the room rates that the Resort currently achieves and also given the present cost of running the hotel, the Vision Group maintain that this figure is simply not sustainable. It’s hard not to agree as we have experienced first-hand over recent years that a 50% payout is unaffordable and we know exactly what such expectation has done to the project before ie. Receivership! (Indeed the Receivers weren’t able to pay out 50% either at any stage during their 2 years of running the resort!)
We believe that the current pay-out, which is around 35%, is pretty good given the economic climate of today. For the next 2 quarters (which as we know are not the best quarters of the year) Vision Group have told us that they are committed to try and get the payments as close to 30% as possible.
Hopefully, if the new management can achieve its long term goal of improving the room rates to somewhere more in keeping with the calibre of the resort and can reduce running costs, we may return to a percentage closer to 50% in the future. Paying 50% is achievable if we can get to an average room rate of FJD $450 with an occupancy of about 60%.
The average room rate over the last 4 years has not been much over FJD $200.  We read that the proposed average rate for 2012 is budgeted at FJD $316, then if we factor in a completed resort and better facilities and maybe some conference business it is conceivable that one day in the not too distant future, the 50% we all signed up with the previous regime for, may be possible.
Overall, we were very heartened to hear that the Vision Group were viewing the Villa Owners as partners and were considering us to be integral to the success of the resort. We think that we are very lucky to have a second chance at securing the equity we all have in our investments and now with a financially strong and thoroughly professional group of local business people running the resort we are sure that the value of our Villas will once again return. We hope this time we will see the Resort deliver its true potential.
We hope that you will respond to the above offer positively when you receive the formal documentation from Mr P L Munasinghe. We need to be mindful of an additional commitment that Mr Munasinghe has also made. He said “there will be no better offers than this one made by the Vision Group to any Villa Owner at any time in the future".
And for your information the following points are relevant …
 
·         Neville Mahon’s interests continue to have a 40% shareholding in the Fiji Beach Resort and Spa assets.
·         Graham Knott wrote to the Vision Group asking if he could also be a shareholder in the purchase of these assets but advised the Vision Group he would be expecting them to loan him the money required to fund his investment.
·         KordaMentha did not identify, in the settlement with Vision Group, any sum to which Villa Owners were entitled as income not distributed in the past and hence the ‘goodwill’ description we use to describe the offer the Vision Group.
·         We, the below named, have not asked for, nor received any fees for our work, nor will we receive any fees for this work in the future.
We look forward with renewed confidence to a fresh start for the Fiji Beach Resort and Spa.
Kind regards,
Andy Haden and John Bongard.
NB. Mr P L Munasinghe has advised that the formal offer will be mailed to all villa owners shortly and will remain open for acceptance for a limited period.

What gives Haden and Bongard the right to purport to act for the villa owners or for Vision Group? These two people have no legal standing whatsoever other than as villa owners themselves. They are obviously friends of Mahon, who is known for his back-door deals, or why would they support some deal which would see their own rent return diminish unless they are receiving some other benefits? Haden the cheat, and Bongard, who presided over the Fisher and Paykel debacle, have a lot of explaining to do. Just what is their deal with Mahon? There has to be one, or they would be fighting for their rights themselves instead of doing Mahon's bidding. Maybe they obtained their villas in some other way and didn't pay for them. Maybe the NZ tax authorities should be looking at them also. These two, regardless of their fame or infamy, should not be listened to. This ultimatum from Mahon and Vision Group, designed to be credible by using Haden and Bongard, is a bluff. Mahon hopes that the villa owners capitulate and sign a new agreement. They have a perfectly legal agreement in place right now and no amount of bluff and bullying by Mahon and Vision Group can change that. The villa owners should stand up and be counted, or otherwise their investment will become untenable, and devalued further. In fact, we think that this is part of Mahon's long term strategy - drive out the villa owners and buyback the villas one by one at hugely discounted figures, until he owns the lot. Then he will in all probability turn on Vision Group an oust them.

Nothwithstanding this ultimatum being what it is, it also contains a complete fabrication relating to Graeme Knott. Mr Knott wanted to have the villa owners combine into a group to manage the resort, which makes total sense. A proposal was put forward for such a group to buy the secutities subsequently sold to Mahon. This would have prevented the financial rape of villa owners from continuing as it appears it now will.

Wikifrauds, and a determined and growing group of villa owners, will not rest until this whole matter is referred to New Zealand's Serious Fraud Office, and the Inland Revenue Office. This relentless unscrupled meglomaniac and bully must be stopped, and he must account for his activities to the public at large, and his investors and the villa owners in particular. Meantime, he should know that action along these lines is being taken right now, and we are not going away.
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Nov 14, 2011: Neville Mahon is now rattling the sabres in a typical bullying move, with Australian law firm Elliot May Lawyers issuing an undated draft injunction seeking Wikifruads be restrained from publishing this webpage and alleging defamation on our part. Mahon had better be prepared to personally appear in the Supreme Court in Brisbane to put his case and show how he has been defamed. And his lawyers should be make him aware of the danger of giving false evidence in Australia, either in direct evidence in court or by affidavit. A short while ago an Australian Federal Court Judge, Marcus Einfeld, was jailed for perjury for three years over false declarations made relating to a paltry traffic incident. There is no defamation in truth, and as mentioned elsewhere in this webpage, we have the absolute proof that he is again behind the new controls at the resort. Our legal team will be anxious to cross-examine Mahon, and call a host of supporting witnesses from as far away as New Zealand and Fiji, and Mahon had better be in a position to tell the whole truth and nothing but the truth, as that is exactly what we will be seeking.

Nov 9, 2011:  The villain is now back in the driver's seat. The back door deal with BOS, Vision Group, Hilton Hotels and Mahon's MBH sees Mahon once again in charge of the cash inflows and in a position to further pillage the villa owners. The deal is done and settled - for the time being at least. But there is still a long way to go before this play's final curtain call.

Nov 2, 2011: The villain enters the stage by the back door. Typical of the most callous looter, Mahon has re-entered the financial wreckage of the Fiji Hilton this week in a backdoor move facilitated and settled by Westpac Australia. The deal was brokered by Gleneagles Securities, and saw Vision Group take out the Strategic Nominees debenture over Mahon's Denarau Investments Limited for less than half of its face value. The deal involved an under-the-table payment of some $2M to BOSI by Vision. Vision's partner in the deal is none other than our villain Mahon himself under another of his entities, MBH, the Virgin Islands company in which Mahon's shares are held in trust by Mr Chan Dantley of Hong Kong. Mahon will deny any interest in MBH, but, like most fraudsters, he has slipped-up on detail and control, and we now have conclusive PROOF that he is clearly pulling the strings via his co-producer, lawyer Greg Shanahan.

The prize:
Our looter will once again be in charge of distributing the lucrative income of the resort to suit himself, and more importantly, he will seize the $8 million plus held in a frozen account which rightly belongs to the villa owners as their share of the rent. We understand both Westpac and Vision were warned of this prior to settlement. Meantime, villa owners, many of whom have mortgages to Westpac Fiji, are watching their assets devalue by the minute, and are not receiving rental income while Hilton Hotels continue to use their villas! And the government of Fiji, aware of the problem, is doing nothing. Sensible investors should think carefully about ever investing in Fiji, or for that matter, any development in which Hilton is involved. Clearly the Prime Minister of Fiji has failed to mop up corruption as promised, and Hilton Hotels don't give a damn about owner's rights as long as they get their slice of the pie first.

Catching a Monkey: It has been a well known long-practised method to capture a monkey by using a coconut and some peanuts. A hole is cut from the top of an anchored coconut, into which are placed a few peanuts. The monkey reaches in to grab the peanuts, and in so doing forms a fist that will not be able to be removed without the monkey releasing the peanuts. The greedy monkey is unwilling to let go of the peanuts even to avoid capture, which quickly follows. It seems some humans fall into this 'monkey' greed trap also. Readers can decide how many greedy monkeys are in the cast of this play. ______________________________________________________________________________________________________________________
                                                                                       Appeal to Villa Owners

If you are an aggrieved villa owner who is way behind in rental income, and you want some action to remedy this situation, please contact us. Your information will be kept totally confidential. A fighting fund is to be established and a separate website for secure lodgement of your details will be on line soon.
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Mahon is a manipulating bully who is dishonest and corrupt, and has induced others into corrupt behaviour themelves. And when the resort was under construction, he ruthlessly bullied sub-contractors into accepting heavily reduced payments for services. One such example is a swimming pool builder who, on presentation of his invoice for the contracted figure of around $70,000 for the completed pool, was told by Mahon that, "I'll pay you $25,000 and that's it. If you don't like it, take me to court!". This is a typical example of how this scheming evil man treats people. But not everyone sees him this way. We understand that Hilton Hotel's management in Sydney had Mahon as their guest at their facility at the Melbourne Cup at one time. Go figure! It surely begs another question - should people thinking of investing in any development badged by Hilton Hotels think twice? Will they get support from Hilton when and if needed, or will they be left out in the cold as the villa owners in Fiji have been? Perhaps they should seek independent legal advice before buying any such investments that are to have a Hilton badge.
It is believed that the Fiji tax authorities and the Fiji Attorney General's office wish to pursue Mahon over substantial unpaid taxes amongst other things.
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Wikifrauds will be publishing more details of this amazing play and showing the important and critical roles played by each member of the cast, including a considerable number of extras. All jokes aside, there is a serious matter of injustice and an ongoing fraud that has been brought to our attention. We intend to publish all of this in an effort to gain justice for the current villa owners who are being robbed of their contracted returns by an orchestrated manipulation by Mahon, right under the noses of the Hilton Hotel Group and Denarau Investments receivers, Korda Mentha. We have now published a legal opinion obtained by the villa owners group, which in itself highlights numerous breaches of contract by Mahon, who is now trying to buy back in through the backdoor. What's more, a well known Australian bank is stumping up the funding in a buyout of a well known Scottish bank's debt over the failed development. And the receivers apointed by this bank have been left out of the deal - or so it appears.

More to come in the next day or so, meantime, a legal opinion from  Lowndes Jordan lawyers obtained by the Villa owners, who are also wrongly being left out of a deal due to be settled this coming Thursday, October 27. This opinion is quite clear that our bad guy had been in breach of agreement prior to his companies failing. See paragraphs 42.1 onwards.

We will continue expanding this page over the next few days. In the meantime, any of the role-players listed above should take notice that any continued support by any of them to Neville Mahon or any of his associated companies, will be exposed in full. The man is totally unscupulous and needs to be stopped.

Notice to interested parties:
Neville Mahon, Greg Shanahan, or any other parties feeling aggrieved by this publication may contact us and we will happily advise them of contact details of our lawyers.

Well Worth reading.                                                                                Document references available for reading:
Read "Cactus Kate" story on conflicts of interest by Korda Mentha                   Fiji Hotel Investments Limited, Cayman Islands
Click here for some early background to read.                                                  Mahon's Denarau Companies Diagram 
NZ Herald article Sep 2009
Problems with Strategic Nominees - Fiji News
Investors Owed Millions
More here.                                                                                                      
Legal Hell in Fiji Paradise
Facebook postings from Strategic Finance Investors

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