In a representative hearing, which will decide the fate of investors in three apartment buildings, saw retired Aucklander Peggy Whyte becoming the first Blue Chip investor to take the stand.

It should be noted that of 34 inventors who have targeted three property development companies Greenstone Barclay Trustees, Turn and Wave and Icon Central in a court case that is likely to last six weeks, Mrs. Whyte is also one of them.

Requirement of settlement is being sought from investors for four Auckland apartment buildings – Barclay on Albert Street, the Icon on St Martin’s Lane, Chatham on Pitt Street and the Bianco near the top of Queen Street – now they are completed.

It should be mentioned that majority of investors do not have economic means to settle on apartments since they had been told that that this would not be necessary or had believed that the joint ventures or premium income products that they had signed up for were loans rather than property investment.

The investors in the four apartments were chased for settlement on the property, when Blue Chip collapsed in February 2008, while in the original scheme Blue Chip had promised to buy the properties before settlement.

The court was informed by Mrs. Whyte how she had invested $105,000 in Blue Chip following advice from a favorite nephew, who was a Blue Chip salesman.

She reported, “He came back with a bundle of documents to sign. I did not read them because Logan [her nephew] told me I did not need to. I do not remember Logan telling me I might have to buy a property.”

It should be mentioned that though Mrs. Whyte’s testimony is just the first of many, it is being predicted by the investors’ lawyer Paul Dale that investors, sales agents, former Blue Chip employees and solicitors and experts would all be taking the stand over the next six weeks.

(via TopNews New Zealand. Contributed by Manish Verma)