PHOTO: Kenyon Clarke aimed to build a “billion-dollar empire.”
After years of battling allegations of financial troubles, unhappy investors, and negative press, the collapse of the Du Val property group has been swift. Nick Truebridge interviews an insider who claims they foresaw the downfall and explores the current state of affairs.
Jeremy Johnson, lawyer for 16 investors who have funds tied up in the Du Val Mortgage Fund.
LAWRENCE SMITH / LAWRENCE SMITH/STUFF
PWC’s John Fisk called the Du Val group of companies “hopelessly insolvent” in an interview with Radio New Zealand.
MICHAEL BRADLEY/STUFF
Kenyon Clarke aimed to build a “billion-dollar empire.”
Receivers’ report raises serious concerns about Du Val Group | WATCH
As the figurehead of the company, Clarke embodied power, vision, and success. He boldly declared ambitions to not only create a multibillion-dollar business but also to donate a billion dollars. However, long before reaching that goal, the foundations of his empire began to crumble.
On August 2, police officers and agents from the Financial Markets Authority (FMA) raided the Clarkes’ Remuera home. Shortly after, the Du Val group entered receivership and 19 days later, statutory management.
Behind Clarke’s public declarations and glamorous social media presence—filled with images of luxury cars and private jets—the company’s decline was underway.
According to the first receivers’ report, Du Val had been struggling with “cash flow problems” and “difficulties meeting obligations” since at least January of the previous year—nearly two years before its downfall.
An insider, speaking on condition of anonymity, said that the issues within Du Val were apparent long before the raid. Investors and first-home buyers were “sold a dream,” but the insider had seen disaster looming. “I’m not surprised. I personally saw this coming. The decision-making was flawed from the start,” they said. Clarke, described as headstrong, was difficult to reason with: “If he’d made up his mind, there was no changing it.”
Despite these criticisms, Clarke was also praised for being “energetic” and a “great salesperson”—qualities showcased in promotional videos for his masterclasses on building a business empire.
However, not everyone was as confident. One first-home buyer, who had placed an $83,000 deposit on a property in Du Val’s unfinished Te Awa Terraces, now finds herself in limbo. “I just want my deposit back and to forget about this ugly time,” she says.
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Attorney Jeremy Johnson, representing 16 investors with hundreds of thousands tied up in the Du Val Mortgage Fund, described how many were lured by promises of stable 10% returns. Some were even encouraged by Du Val staff to invest their house deposits in the fund. Now, those investors are in a bind, unable to reclaim their deposits to finalize their purchases.
Johnson believes the investors were misled. He is currently exploring potential legal actions, including claims under the Financial Markets Conduct Act and breaches of directors’ duties. Still, whether these legal routes will provide any real compensation remains uncertain.
PWC’s John Fisk, overseeing the receivership, has declared Du Val “hopelessly insolvent.” While construction continues on some projects, the broader group remains under investigation, with serious questions raised about fund management and related party transactions.
Though Kenyon Clarke insists the company is in good shape, claiming it has millions in corporate accounts, the reality for investors and first-home buyers tells a very different story.
Du Val Group receivership a trail of deceit with investors and others millions out of pocket | WATCH
SOURCE: STUFF
High profile property investor and developer Du Val Group placed into receivership