Disgraced real estate businessman Aaron Coupe has been sentenced to four years and five months in jail for causing millions of dollars in losses to business partners, banks and creditors.
Details of the 48-year-old’s offending can be reported after an appeal for permanent name suppression was abandoned.
At sentencing in the Auckland District Court last month, Judge NR Dawson said the gravity of offending and culpability were both “very high”.
He described Coupe as a “very glib huckster; very talented at taking in people with all your tales about over-ambitious projects and you managed to take in experienced businesspersons with your tales.
“You take no responsibility for any of your actions and lay the blame upon every other person or institution with whom you have had dealings.”
Couple had been previously prosecuted by the Ministry of Business, Innovation and Employment.
He was adjudicated bankrupt in 2010 which imposed restrictions on his business involvement with companies.
In 2014, charges were filed in respect to his conduct during his bankruptcy. He pleaded guilty to eight charges under the Insolvency Act 2006, and in 2016, he was sentenced to 12 month’s home detention, 200 hours community work, and $75,100 in reparations.
The conviction also meant Coupe, who was the sole director and shareholder of Greys Avenue Investments Limited, was prohibited from being a director or involved in the management of a company for five years from August 5, 2016.
Despite this prohibition and without the approval of the Court, Coupe took part in the management of five companies, including Greys Avenue Investment Limited.
His mismanagement of these companies caused “substantial financial loss and significant emotional distress” for business partners, stakeholder and creditors, including:
- Unsecured creditors’ claims of $970,126.20 in the liquidation of GAIL
- Unsecured creditors’ claims of $2.89 million in the liquidation of Ascent, which was involved in his joint venture project
- Lost investment of $3.5 million by American property developer Gary Oda for developing the property at 48 Greys Avenue in Auckland into a luxury hotel
- An estimated damage of $700,000 to a property in Auckland that Coupe wanted to develop but did not complete construction work
- Significant financial loss to the owners of spa and hot pool complex at Cardona Valley who purchased land at Coupe’s behest and then ending up paying for the interest on the loan as Coupe failed to honour his commitment to cover the interest repayment and then legal fees for two years of negotiations.
MBIE investigations and compliance team manager Vanessa Cook said Coupe’s blatant violation of his prohibition contributed serious losses to New Zealand and overseas creditors.
“Mr Coupe disregarded these safeguards and took part in the management of various companies, exposing the public to mismanagement and manipulative behaviour,” she said.
“The Ministry of Business, Innovation and Employment would like to thank all witnesses and others who assisted MBIE’s investigation into Mr Coupe.”
