$211 million investor money to stay frozen in liquidation of Halifax Investment Services

MORE than $211 million in investor funds from collapsed stockbroking firm Halifax Investment Services will remain frozen until well into 2019. Here’s why

Gold Coaster Jeff Worboys is director and CEO of Halifax Investment Services, which has gone into administration. Photo: Supplied

MORE than $211 million in investor funds from collapsed stockbroking firm Halifax Investment Services will remain frozen until well into 2019 after the Federal Court granted the administrator’s request for an extension of time.

More than 12,000 trading accounts belonging to more than 10,000 clients in three countries were active when the firm, run by Gold Coast man Jeff Worboys, collapsed last month.

Administrators at a four-hour creditor meeting said while $211 million had been invested with Halifax, the company only held cash and securities of $190-$200 million, leaving a shortfall of up to $20 million.

Former director and current investor in Halifax Investment Services Andrew Baxter.

They had been unable to account for the missing millions and said the deficit could swell as more information is uncovered.

Creditors heard Halifax’s sole director, Mr Worboys, had surrendered his passport to the administrators Ferrier Hodgson, who were in “daily contact” with corporate regulator ASIC and its New Zealand counterpart.

The Federal Court granted an application from Ferrier Hodgson’s Morgan Kelly, Phil Quinlan and Stewart McCallum, orders extending the convening period for the watershed meeting to March 29.

Mr Kelly said the extension was crucial.

“This extension gives us time to resolve the legal complexities around guaranteeing all funds and assets are matched and segregated correctly, this process will require directions and orders from the Court,” he said in a statement.

“We are also looking at dealing with some investors sooner and we will resolve these issues as quickly as possible.

“All investor accounts remain frozen until our investigations into what investors are owed and how much is available for investors are complete,” he said.