But the image was “a bit of a façade,” Slade explains – and in August 2024, the Financial Markets Authority (FMA) raided the Clarkes’ rented Remuera home. The group was put into receivership and later statutory management, a rarely used step “so significant the Governor-General has to sign it off”, she says.

The collapse of the company is still under investigation, no charges have been laid and the Clarkes deny any wrongdoing. But what is clear is that hundreds of investors have been left out of pocket, many of whom, Slade says, should likely never have been able to invest in Du Val.

“We have a regime whereby you can offer investments to people who are called ‘wholesale investors’. You can be wealthy to be a wholesale investor, or you can be ‘eligible’ – that is a person who is experienced, who may not meet the wealth thresholds.”

It’s an important distinction because wholesale investments are not regulated the same way retail investments are, meaning wholesale investors do not receive the same protections as retail investors.

“Some of these [eligibility] certificates were being signed off on things like, I’ve got KiwiSaver, therefore I’m an experienced investor – but this regime is not meant for people like that,” Slade says.

In 2022, the FMA warned Du Val and several other companies because “they were making pretty liberal use of this exclusion in the law, and the FMA, the Financial Markets Authority, was getting really worried that they were offering these pretty risky investments to unsuitable investors”, Slade says.

“This podcast,” she says, “is a cautionary tale – and a chance for New Zealanders to think about how easily it could happen again.”

Listen to the full episode of The Prosperity Project for more.

Listen to The Fall of the House of Du Val.

The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser.

You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts. New episodes are released every Monday.