D-Day looms for bankrupt Nielsen

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A prosecution of Queens-town bankrupt Rod Nielsen now lies at the door of Crown Law. 

That’s the latest from Auckland Official Assignee David Harte. 

Harte’s office has supervised Nielsen’s bankruptcy since the previously Queenstown-based developer went under a year ago owing nearly $17 million. 

In July, Harte revealed Nielsen was being investigated for allegedly breaching the Insolvency Act “by being involved in the management of a company without the prior consent of the Official Assignee”. 

Harte says a “preliminary assessment” has now gone upstairs to the Ministry of Economic Development’s national enforcement unit and Crown Law. 

“[They’ll] see if the criteria of any offence have been properly satisfied.” 

Nielsen is in the United States with official permission. 

“Any prosecution decision would need to be approached with that in mind,” Harte adds. 

“These possible offences do not qualify for extradition.” 

Harte tells Mountain Scene Nielsen is giving his version of events and his staff have also talked to Millar, who may hold the key to any possible charges against her husband. Queens-towner Duncan Brown has alleged to 

Harte that Nielsen was continuing to act like a director of Little Rock Management. 

Little Rock is one of only three survivors out of 118 Nielsen companies. 

When bankrupted, Nielsen had to step down as Little Rock director by law – his wife took over the same day. 

As well as not managing or controlling companies without his permission, Harte told Mountain Scene bankrupts also mustn’t work for relatives or entities “owned, managed or controlled by a relative of the bankrupt”. 

Among emails sent to Harte by Brown is one attributed to “Rod Nielsen, consultant to Little Rock Management”.