Tonight ` While he was here, we put on morning and afternoon teas and even a bit of lunch for them, We were treating them like family. And then,... The water started coming in. ...disaster. Somebody has to pull the plug and have him stopped. Nothing. $9 million missing. I'd like to talk to you about the returns you were promising. And a bit of a stink. There's nothing quite as bad as the smell of cat pee, right? Gross, yeah. Welcome to Fair Go. He took the money, then did a terrible job or even no job at all. He's bankrupt now. He's promising to pay the money back, so why's he on holiday in Vietnam? Here's Brodie. Wild, windy, wet wellington. We've all seen it, and yeah, yeah, I know you can't beat it on a good day, but with weather like this it's important to make sure you've got a good roof over your head ` actual. We've got the wind and the rain coming in off the sea. You must have a good hat on top of your house. Bob and Janice live in Seatoun and were actually getting a little piece of history when they bought this place. You see, it used to be a very popular ice cream shop. Today it's somewhere they want to kick back and take in the view. At our time of life, we came here to retire. On a sunny day, of course, you're looking out the sea, and it's a lifesaver. A lifesaver until you've gotta fork out for a new roof. We had the roof replaced, and it cost $15,300. They'd had a man by the name of Bruce Robinson do some work at a previous house, so they called on him again. He did a fabulous job. Really? Yes, he did. So you trusted him? We did trust him. Bruce turned up, gave a quote for the job and voila. Told us the job would be no problem whatsoever to do. Yeah. He said, 'No, that will be easy. We'll knock this over.' Bob and Janice say Bruce told them the roof he was putting on was specifically designed to hold up in coastal areas like this, with a 20-year warranty. But it was all about to blow up in their faces. When did the alarm bells start to ring for you guys? When we didn't get the guarantee from him. So no guarantee, and then... The first time it rained really heavy, and then the water started coming in, and we had a leak coming in through here where we used to have a smoke detector. And it was` The water was just dripping down. We had a bucket under it. And then the ceiling started to show deterioration. And Bruce ` seen here on this Wellington roof, which we'll get to soon ` well, he just wouldn't get back to them. He` never spoke to him. Wouldn't answer phone calls; wouldn't answer texts. Nothing? Absolutely nothing. They were curious as to what had gone so wrong so got a roof inspection carried out, which says,... Just about nothing's been done right. Just the most basic ` turning the steel over at the gutter edge. Hasn't even done that. He's put flashings on top of rusted, old flashings. The report also says not only had Bruce put the wrong product on, there were a large number of deficiencies, mainly due to poor workmanship. So a brand new roof utterly useless. And quotes Bob and Janice have had since say it would cost 40 grand to fix properly. So Bob and Janice went into battle, first at the Disputes Tribunal, who ruled in their favour, ordering Bruce to either replace their roof or give them their 15 grand back. He promised he would arrange to have a new roof done by the 31st of March. And the 31st of March came? Came and went. Came and went. Nothing happened. Down but not out, they took the battle further and got Bruce declared bankrupt. OK, we know that we're a lost cause, but we are thinking that at least it will stop him, cos this is not` we're not the first ones he's done this to, and somebody has to pull the plug and have him stopped. Indeed they weren't the only ones. Meet Viv Anderson, who I met on the Kapiti Coast. She had a quote to have her roof fixed for 15 grand, and Bruce Robinson ` yes, the same Bruce Robinson ` asked for a 50% deposit. We had several quotes. His was competitive, but mostly because he was a local guy, and we wanted to give the local guy a chance. He seemed OK. They gave Bruce seven and half grand and waited and waited ` nothing. So they went to the Disputes Tribunal, who ordered him to pay $500 back every month. He paid two of those, then nothing. I'm cross ` very cross. (LAUGHS) He's got no right to our money. And once Viv found out Bob and Janice had made Bruce bankrupt, the can of worms opened up even more. So we got in touch with the personal people on the list creditors list ` not the firms ` and found there was a pattern emerging, that Bruce Robinson was accepting deposits and not carrying out the work. We found Bruce doing a roofing job in Wellington with his son a couple of weeks ago. We thought that was pretty interesting, as typically, bankrupts cannot work for family members, but there they were on the roof together. So after failing to reach Bruce on the phone that day, I called his son, who answered while on the roof. Hey. Look, I was trying to get hold of your dad, Bruce. Oh, OK, so you don't know where he is at the moment? Oh, really? Oh, OK, OK. And so he doesn't work with you? That's funny, cos we saw them together all morning, and we know Bruce had asked for and been denied permission to work for his son, but turns out Bruce was working for another company. So that's OK, then, isn't it (?) After trying to speak to Bruce a number of times, he finally agreed to speak to me yesterday. He says he warned the Manns that their job would be bigger than simply replacing the roof. Are you telling me that the Manns are to blame for their leaky roof? But what about the wrong roofing product being used? As for the Andersons, Bruce told me numerous health issues are to blame for not completing their job. Bruce says he's committed to paying back what he owes and says he's already started giving money back to the Insolvency Service. But Bob and Janice and Viv have not seen a cent since he's been made bankrupt, and now it's emerged that he's been given consent to escape the Wellington winter and travel to Vietnam. Are you or are you not in Vietnam? The phone code that you're calling from is Vietnam. So a holiday for Bruce, but what do these guys want? Well, we'd like to seem him pay everybody back. We'd like to see him stopped permanently from going overseas till he's done that. He's got no qualms about what he chooses` He just carries on as if he's bulletproof. And Viv, well, she's realistic she'll never see her money back, but the whole situation has left a bitter taste in her mouth. People have saved all their lives for their retirement home and put the money into getting a new roof, and they're left with an unfinished house and a leaky roof and no comeback. Why can't something happen to stop these people? Very good question. That's troubled us for years. We're sick to death seeing Kiwis getting caught out in situations like this, and despite trying to do everything they possibly can, they often come up empty-handed. So here's Brodie again with a few tips on how to avoid losing your coin. So before you commit to getting work done, do a quick Google search on the company, and often a basic search will bring up some good info that can help you make the right choice. The quality of feedback varies, though, so make sure you look at more than one. So you can also check out the Companies Register, which has vital information about directors and their companies. Make sure you understand what you're reading, though. A company that's been struck off, for example, doesn't necessarily mean they've been in trouble; it can mean 'failure to file tax returns', 'a company merged with another company' or a request to be formally removed. If you look at the documents tab, you may be able to see why the company was struck off. Now, if you find yourself in a dispute with your tradesmen, and you can't work it out together, the Disputes Tribunal is a simple and inexpensive way of dealing with it without lawyers getting involved. They hear claims of up to 20 grand and can be an excellent solution. And even if you win, like Bob and Janice did, there's still no guarantee you're gonna get your money back. One more tip ` you can check if someone is bankrupt by looking on the insolvency register. Yes, and if they are, then contact the official assignee and make sure you are on the list of creditors. That way, at least you have a chance of getting some of your money back. We are going to announce the topics for the School Ad Awards a little bit later, but first, like the sound of turning $5,000 into $150,000? Like the sound of getting rich quick ` very quick? Nothing. $9 million gone ` just gone. I'd like to talk to you about the returns you were promising. How many investors have you got, Jimmie? And later ` Come on. She fosters cats for the SPCA, but there's a problem. I just smelt it,... (LAUGHS) and it just got worse. Have you ever heard of anything like this? Welcome back. Get rich trading foreign exchange. That was the hook for Blackfort FX. Black hole might be a better name. Looks like $9 million ` yes, $9 million ` has evaporated. It was run by Jimmie McNicholl out of Christchurch. Jimmie isn't talking now, but he did, to me, before it all blew up. Days before it did, I got a tip-off, and I paid him a visit. It's a long way from Spreydon in Christchurch to Park Avenue, New York, but it's a journey Jimmie McNicholl told the world he had taken. Hello, Jimmie? I want to talk to you about Blackfort Foreign Exchange, Jimmie. Now, this is the good old bad old days of foreign exchange ` forex ` dealing. Yes, that is John Key, the PM. 10.40, John? No, no. These days you can trade forex yourself directly with outfits like Blackfort FX. Blackfort is, or was, the trading name for Jimmie McNicholl's company, Arena Capital Ltd. Offices in Auckland's Vero Centre, Sydney's MLC Tower and the Seagram Building, Park Avenue, New York. Blackfort was making some astonishing money, it seemed. I'd like to ask you about the returns you're promising. I'd been told one investor turned $5000 into 150,000 in months. And look at Jimmie's wheels ` over 100,000 new ` 6.4 litres. We are leaving your property, but I'd really like to speak to you. We weren't alone in that. Just days after this, Blackfort imploded spectacularly. Assets seized by court order; Financial Markets Authority investigation; Serious Fraud Office investigation; then receivership and total collapse. The receivers say Blackfort took in nine million from at least 750 investors, and it's pretty much all gone. And get this ` they can't find evidence of any forex trading at all ` nothing. I thought Jimmie McNicholl's apparent success was surprising. I first dealt with him five years ago. Back then he was selling alarm systems. His then company was ordered to refund about $1100 to this bloke. (CHUCKLES) No response whatsoever. Until Fair Go got involved. There's a knock on the front door. I opened it, and here was Jimmie McNicholl with $1140 in cash. Fast-forward five years, and alarm guy turns forex ace. Now, OK, those returns ` those incredible returns ` may be legit. Jimmie McNicholl may be a trading genius. Watch out behind you, Gordon. Hello, Jimmie. How are you? This was early May. I went to Jimmie's because of this website ` apparently his company's website ` and full of ludicrous claims like 1200 offices in 42 countries. That's not my company. I can tell you that now. The website you're referring to ` Arenacapitals.com. that website's got nothing to do with me. Jimmie said his company name had been cyber-jacked. That seemed fair enough. The profits didn't. Are you offering returns of 5000 to 150,000 in six months? Because that's the tale that I'm told. No, no. How many investors you got, Jimmie? A thousand. What sort of returns are you offering? Ah, sometimes we get a return 1% a night; sometimes we don't trade at all in a night. They also offered a startling promise. I had Blackfort documents guaranteeing security of the initial investment. You are guaranteeing` No, we don't guarantee anything. I've seen the paperwork, Jimmie. You guarantee the initial sum; you don't guarantee any returns. We guarantee the initial sum until they double their money. Not many people do that. No, they don't, but, hey, we do. We pay out over $500,000 a week to clients that want to withdraw money. We're fully registered. I had a meeting with the FMA last week. The FMA is the Financial Markets Authority ` up there. You see, Jimmie's company had ticked the right boxes. It was a registered financial service provider. Now, would-be investors might think that shows the company is legit. It doesn't do that. It is not a badge of approval. The FMA can't comment on Blackfort or the current investigation but did want to give a general warning. When an investment opportunity sounds too good to be true, it usually means it probably is too good to be true, and we really sort of guard against people taking word-of-mouth recommendations for an investment opportunity. We trade through Dukascopy in Zurich, and we're 100% legitimate. He's talking there of Swiss forex company Dukascopy. That might be his most significant claim. We trade through Dukascopy in Zurich, and we're 100% legitimate. Small problem; the receivers say Jimmie's company never even had an account with Dukascopy. And what about those global offices? Have you really got an office in the Seagram Building in New York, Jimmie? No, that's just where we do our trading through. Have you really got an office in the MLC Tower in Sydney, Jimmie? No, it's like Servcorp. It's exactly the same. Jimmie mentioned Servcorp. That's a company offering so-called virtual offices around the world. ...which is sure to impress your clients. I visited Servcorp in Auckland's Vero Centre, and they confirmed Blackfort did have appointments there, so that seemed legit. Who did those documents come from? 'I had Blackfort documents with me.' Well, they were supplied to me, Jimmie. Yeah, yeah, from who? I'm not going to tell you my sources. I mean, that's not the sort of thing I tell you. No, that's fine. Just curious. A concerned investor, or a concerned would-be investor ` put it that way. < Oh, OK. With that, Jimmie left in the flash Jeep. The receivers have taken it, by the way. Listen to investors' money burning. Remember everything Jimmie said there was before Blackfort blew up? We asked for comment on his comments but got no reply. I've talked to a few investors. They're angry and embarrassed, so a bit shy about going on TV. Contact us if you've got a story to tell about Jimmie McNicholl and the others involved in Blackfort Forex. Now, pets. They give us so much, don't they? Unconditional love, comfort,... ...fleas. ...fleas, (LAUGHS) and sometimes little presents. I just smelt it. Cos there's nothing quite as bad as the smell of cat pee, right? Gross, yeah. This cat lover has a cat-a-strophic insurance question. And I think every one deserves to know what they are paying for. Have you ever heard of anything like this? And our call for the School Ad Awards. Welcome back. Kiwis ` crazy about our pets. Half of us have cats; a third of us have dogs. But what if your pet leaves you a little something extra on your carpet or couch? It stains, it smells, and it's time to ask your insurance company, 'Am I covered for this?' Hannah with some cats and some answers. Cats, cats, cats, cats. Tabby cats, ginger cats, skitey cats, shy cats, scaredy cats, and, yeah, feisty cats. Cats are Kim-Maree Morwood's passion and her work. This is her cattery. Zeeky-Zeeks. Come on. And at home, more cats. This one's in training. I can just work with them and do my little bit. Kim-Maree's 'little bit'... Good girl. ...includes fostering cats and kittens for the SPCA. But then one of the cats went rogue... Whoa. ...on the carpet. So what was happening to the carpet? I just smelt it, and then it just got worse, and I realised this is not right, and, um, this piece of carpet's getting urinated on. And then we got a really top-of-the-line carpet cleaner and with proper cleaning fluid to clean it properly. So some specialist products. And that didn't work? No. No, it just` I think it was just beyond repair. So because the cats and kittens had to go and go, the carpet eventually had to go as well, cos there's nothing quite as bad as the smell of cat pee, right? Gross, yeah. (LAUGHS) The only solution was to replace the carpet ` several thousand dollars' worth. Would insurance cover it? Have you heard of anything like this? Oh, I've heard of many cases over the years of cats and dogs relieving themselves on people's carpet. There's nothing under most policies which says you are not covered for damage caused by one of your pets. But as you may have guessed, there is a catch. Whoo! (LAUGHS) She said it was gradual damage and that because of that, they would not cover it. Most domestic insurance policies have an exclusion for what we call gradual damage. Gradual damage is anything that doesn't happen suddenly. But I could always try ` but she can't guarantee it would be accepted ` to make a claim for each individual accident. And each occasion falls under your excess, so whilst you're covered, none of it's gonna be paid for. And your insurer may turn your claim down. If you know this is a problem and you don't do anything about it, again, it's not accidental. So what we've got here is a bit of a cats-22 situation. If you claim after each pee, you pay excess each time, so not worth it. If you claim after a number of pees, the gradual damage clause may kick in. Your insurers may also claim that repeat peeing isn't accidental, so no cover. It is gradual damage, but my point is there wasn't a problem until all the gradual damage had happened, and I couldn't prevent it. What about other kinds of gradual damage, though? What if you had a leak in your dishwasher or your hot water cylinder? Would that be covered?. Well, Andrew Hooker says gradual damage exclusions limit the insurer's liability for serious water damage, such as leaky homes. They are not aimed at small leaks or small leakers. CAT BELL TINKLES Check your policy, because most good policies will have a little clause that gives you back a small amount ` a few thousand dollars' worth of cover for gradual damage ` that by and large is probably going to be enough to fix your normal` your normal leak. Enough also to cover accidental carpet damage, minus the excess, of course. Kim-Maree just wanted other pet owners to know what she now knows about insurance. And I think everyone deserves to know exactly what they're paying for. This hasn't hopefully put you off looking after cats and kittens? (CHUCKLES) Nothing would put me off looking after cats and kittens. Good on you Kim-Maree. What great work you SPCA foster parents do. Awesome, isn't it? Yeah. Fantastic. So gradual water damage. Most policies will give you a bit of cover, a few thousand dollars, say, but only if the damage is accidental and unforeseeable. Like a leaking pipe that's hidden from view. Even then, you'll only get an amount specified in your policy. Anything more ` you'll have to pay. More on this on our website... We're gonna stick with the animal theme with this year's School Ad Awards. Our theme for the awards ` for both primary and secondary ` is sell us something, anything, involving an animal. Could be an animal-related product, or not; it really doesn't matter. Just get an animal of any flavour in your ad. There's quite a history to look back at. We reckon our students will have a pretty fun time with this category. Cats, dogs, gorillas, meerkats, pukekos and pigs ` (BARKS) just a few of the creatures used to sell products over the years. Now it's your turn. Remember these sweet piggy banks? # Come on, come on. Let's get together. # And we reckon there's room for a bit of dress-up action from our students too. DRUMMING # I can feel it coming in the air tonight. # Oh, Spot, we do miss you. He starred in 43 different Telecom commercials made between 1991 and 1998,... LIVELY MUSIC ...many of them on an epic scale and seemingly at risk to his life or limb. Spot actually lived to the ripe old age of 13. And how about the Bugger campaign? Bugger. Caused a bit of a stir when it first appeared in 1999. Ooh, bugger me. It attracted 120 complaints to the Advertising Standards Authority, who ruled that 'bugger' was unlikely to cause... Bugger. ...serious offence. Hey, hey! It's Rolly. Bit of a stretch ` dogs and toilet paper ` but it worked. This is one of this year's crop of animal stars. It's Keith. I was driving along Dundas Lane. There was a pig in the middle of the road. Anyone know anything about it? Piggy-Sue. This ad has the cute factor big time. Any luck? They didn't have a thing. That is a very cool ad, actually. Yeah. Seriously cute, actually. Seriously cute. We'll have a whole show devoted to your school entries, and there's cash and flash goodies for prizes. So have a think over the holidays. The deadline for entries will be at the end of term three, and next term they'll have some tips for you on the website, like make sure there's good sound. Yes. So that's the show, but we will be on Facebook for the next half hour to answer your questions. Our programme is all about your thoughts, your problems. Do get in touch. We're on Facebook. Email us... Write to us... And next week ` I don't think that Kiwis as a culture are comfortable with that complaint process. And often we get it wrong. Pop it on the thingy. Every single time. How do I complain about that? Let's find someone who knows. We get some advice on how to complain. Hi. Welcome. That's next week. Goodnight.