Court action underway to stop Budget Loans boss whose company exploited borrowers from managing companies

Mr Hawkins is the former Equiticorp boss and his Budget Loans company has recently been fined.

The commerce watchdog has headed to court to try to stop former Equiticorp boss Allan Hawkins from managing any companies for as long as possible.

The Commerce Commission wants him banned for a decade - in its words - to protect the public.

Today's hearing in the Auckland District Court comes after Mr Hawkins' company Budget Loans was fined $720,000 for charges relating to exploiting vulnerable borrowers.

The Commerce Commission is also trying to ban his son Wayne Hawkins, who has not turned up to court.

He has sent an email to the court saying he would abide by any decision it makes.

Allan Hawkins is in court representing himself.

Budget Loans was incorporated in 2004 and Mr Hawkins senior remains its sole director, with Wayne Hawkins ceasing his director role in early 2016.

"The Commission's case is both respondents were heavily involved in running this company including at a day to day level, and therefore each have direct involvement in the relevant conduct," Commerce Commission lawyer Alysha McClintock told the court.

"These were practices signed off in some instances by the directors, authorised by the directors, known about by the directors and effectively what the Commission says is look, each of these respondents was basically entirely reckless as to the true position," she said.

"They weren't personally convicted, that's accepted, they weren't personally charged, but their role was such that they were integrally involved in the running of this company... These are not rogue employees," she said.

Ms McClintock said today's court action was not about secondary punishment, but "squarely" aimed at protecting vulnerable people.

She said the only way to make sure the public was not at risk was to "effectively take out his ability" to have a management role.

The hearing before Judge Brooke Gibson is set down for three days.

The Equiticorp saga was one of the biggest stories of the 1980s, with investors losing millions in the finance company's collapse.

Many were elderly and the crash also took down more than a hundred companies.

Allan Hawkins was jailed in 1992 for his role.
 

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