Pair leave trail of failed deals

14-06-2010 | Richard Rennie

A land developer who failed to complete purchase of more than $50 million of farm land earlier this year denies he also owes thousands of dollars to people affected by other business dealings.

Robin Lewis and his partner Julie Chegwidden failed to buy 15 properties signed up in the Central North Island-Wairarapa area earlier this year. Now Lewis and Chegwidden have also left a trail of debt and losses estimated at over $100,000 through the Wanganui region.

The couple traded as CO2 Farming when supposedly buying the 15 sheep and beef properties in the King Country-Wairarapa regions.(see The New Zealand Farmers Weekly March 15).

Investigations following Lewis' failed attempt to buy these properties reveal he and Chegwidden also undertook to buy and develop farm land in the Waitotara region. Intended as an eco-park this deal was undertaken with the couple trading as Sustainable Planet.

The deal had been subject to subdivision approval being gained on the 800ha property and a deposit of $20,000 had been paid by Lewis to farm owner Henry Matthews.

However, Matthews waited "many weeks" for completion of the deal and lost patience when it failed to advance. He ultimately paid the deposit back, but had earlier already bought another property in anticipation of the deal being completed.

"The deal left things very tight, but it has been worse for others in this area who dealt with them," Matthews said.

A website for the eco-park has since been taken down but gave people the opportunity to buy trees on the property.

"The fact was they did not own it and the predator proof fence they sought donations for on the site was not even built, it had been photographed elsewhere."

Work completed by Wanganui businesses but not paid for by the couple included helicopter access service, surveying fees and farm contracting services.

Waitotara Valley land owner David Peat rented a house to the couple who left still owing $2000 in unpaid rental.

Taranaki real estate agent Bryan Barrett had been contracted to source properties for Lewis in the Taranaki-Wanganui region. He says he is owed $14,000 for unpaid services.

"This couple come across as very plausible, but I started to sense things were fatally flawed when he explained his means of paying for the properties to me," Barrett said.

The couple's plan involved obtaining a GST invoice recording the sale before any money changed hands, and then using the refund as a deposit on the property. However, Farmers Weekly understands the Inland Revenue Department discovered the transactions were without any further financial foundation.

The IRD would not confirm if investigations on the individuals or their companies were under way.

The lower North Island deals took place while Lewis was involved in High Court action from another deal he was involved in near Whananaki in Northland.

A family trust that owned 400ha of forest was approached by Lewis and Chegwidden wanting to buy the block in 2008. This was also purportedly for an eco-tourism venture.

The Eungella Trust sold the property unconditionally to Lewis for $1.75 million, but court action was undertaken when Lewis failed to make the final $450,000 payment due in February last year. Action against Lewis commenced last April and the family is awaiting a High Court decision.

The couple were supposedly buying the 15 farms further south to convert them to forestry and to sell the resulting carbon credits.

When the deals collapsed several properties had been de-stocked in anticipation of sale. Farmers Weekly has confirmed as unfounded Lewis's claims about selling carbon credits to energy companies.

When contacted Lewis denied he owed any further money to any parties. "These comments are completely ridiculous and are simply not true."

Tauranga magazine publisher Andy Martin is listed as a 20% partner in Lewis'company CO2 Farming. However, Martin said he was no longer part of the company, having relinquished his shareholding earlier this year.

A 3.5ha property owned by Chegwidden in Rotorua was sold in March this year for $605,000, well below its government valuation of $900,000. Real estate sources understand that Chegwidden continues to owe "significant sums" from that property and her other dealings.

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