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Last edited by Citation bot (talk | contribs) 27 days ago. (Update) |
John Kenyon Clarke | |
|---|---|
| Born | 1978 (age 45–46) United Kingdom |
| Education | University of Waikato |
| Occupation(s) | Businessman, Philanthropist, Social Media Influencer |
| Years active | 2000–present |
| Known for | Director of Du Val Group (in Statutory Management), Sarvee Group (liquidated) |
| Title | CEO |
| Successor | Charlotte Clarke |
| Board member of | Du Val Group, Du Val Foundation, Sarvee Group |
| Spouse | Charlotte Clarke |
| Children | 4 |
| Parent(s) | Helen Jenepher Clarke, John Peter Clarke |
| Relatives | Paul Bary (in-law), Patrice Green (in-law) |
| Website | https://www.duval.co.nz |
John Kenyon Clarke (born c.1978) is a New Zealand businessman, philanthropist and social media influencer and is best known as the founder of the Du Val Group. He has until recent made significant efforts to establish and maintain his presence on social media, and has frequently made public appearances. Despite a dominating presence and display of wealth and opulence to the public, as of September 2024 his net worth remains unknown. He is commonly referred to as Kenyon Clarke.
Businesses associated with Kenyon (Du Val Group) were placed into interim Receivership in August 2024 following a raid at his rented place of residence by the New Zealand Police and the Financial Markets Authority.
Following the raid and in the same month, the majority of the Du Val Group businesses were placed into Statutory Management, with his family trust and himself (as an individual) also placed into Receivership.
Early years
[edit]Clarke was born in the United Kingdom to John Peter (a UK national) and Helen Jenepher (a New Zealand national). Following the divorce of Kenyon's parents in the mid-1990s, Kenyon moved to New Zealand with his mother in 1996.[1]
Kenyon's first job was as a general hand in a cheese factory located in Lichfield, Waikato, New Zealand.
Unable to foresee a future in dairy or agriculture, Kenyon applied to study for a business management degree at the University of Waikato. A short-lived tenure, Kenyon then planned to join the Royal Marines in the UK until his mother persuaded Kenyon to try out a career in Real Estate.[1]
At 18 years of age, Kenyon joined Ace Real Estate (now Ray White Real Estate). Achievements at Ace Real Estate include being the number-one auction salesperson in NZ, Australia and South East Asia.[1]
It is reported that during his time as a Real Estate salesperson, he was also investing in property on his own account.[1]
Current and former business interests
[edit]The interests as listed below are either currently under Statutory Management, Receivership or have been liquidated and removed from the Companies Office Register.
2000-2009: Sarvee Group and Custodian Electrical
[edit]Sarvee Group was a pioneer of the Studio living concept in Hamilton, with rental properties in Hamilton (96 units), New Plymouth (16 units) and Palmerston North (36 units).[2] Entities forming the Sarvee Group comprised:
- Sarvee Funding Limited
- Sarvee International Limited
- C & C Developments Limited
- Palmerston Developments Limited
- Studio Homes Limited
- Ferguson Limited
- Helen Jenepher Clarke as trustee of the Maara Tahu Trust
- Iniatus Limited as trustee of the Iniatus Trust
- Elife Limited as bare trustee in favour of the Elife Trust and Ngodwi Trust partnership
- Elife Limited as trustee of the Elife Trust
- Ngodwi Limited as trustee of the Ngodwi Trust
On 27 July 2007, Custodian Electrical Group Limited was incorporated to purchase the shares of an electrical company[3], with the consideration being funded primarily by debt sourced from the Bank of Scotland International (BOSI).
On 27 November 2008, Kerryn Downey and Andrew Grenfell of McGrathNicol were appointed Receivers and Managers of the above entities (as Debtors) pursuant to a Global Security Deed in favour of BOSI.[4]
The appointment of the Receivers followed a detailed review of the affairs of the above entities and said the failure resulted from:[4]
- The Debtors' failure to remedy one or more events of default, including payment default under the facilities agreement between the Debtor and BOSI
- Weak Corporate Governance
- Loss of confidence in the Directors in the companies
The debt and the associated security was sold to a consortium comprising affiliates of Goldman Sachs and Brookfield Asset Management in December 2011.[5]
At 26 May 2012, a total of:[5]
- $16.7 million plus accrued interest was due to BOSI by Custodian Electrical Group Limited
- $38.8 million plus accrued interest was due to BOSI by Sarvee Funding Limited
No surplus funds were available from the realisation of assets of the Company to meet the claims of unsecured creditors.[4]
Helen Jenepher Clarke and Kenyon Clarke was bankrupted in late-2009.[6] New Zealand insolvency laws prescribe that an individuals' bankrupt status will be automatically discharged after three years.[7]
2010-2016: Genesis of the Du Val brand by John Peter Clarke
[edit]In 2010, Du Val Group Limited was incorporated by directors John Peter Clarke (retired father of Kenyon Clarke), David Kilburn (cousin of Kenyon Clarke), Jason Smith and Glen Williams (residing with Kenyon Clarke at time of 2024 police raid) with the company's majority shareholder being a trustee company directed by Kenyon's wife Charlotte.
The company was stated as launching property funds aimed at raising up to NZD $1 billion, with NZD $100m already signed for by investors.[8][9][10]
The known and advertised funds on the Du Val website at this point in time were:[11]
- Du Val Private Equity Fund (NZD $20m closed-ended fund)
- Du Val Phoenix Fund (NZD $5m closed-ended fund)
- Du Val Club Fund II (NZD $3.15m closed-ended fund)
John Peter Clarke has previously illustrated his 45-year career in property, heading up one of the largest property companies in the south of England, as well as being a founding director of a UK-based real estate fund which returned 500% of investors' capital.[12]
Du Val Group Limited was subsequently renamed to Eucleia Limited in April 2014 and was removed from the Companies Office Register in August 2016
2014-2022: Revival of the Du Val brand by Kenyon Clarke
[edit]In March 2013, Duval 2014 Limited was incorporated with Kenyon as director and Charlotte Clarke, John Peter Clarke and a trustee company as shareholder.
The leadership team comprised:[13]
- John Peter Clarke
- Kenyon Clarke
- Jeff Downey
- Paul Bary
- Ashley Osborne
- Cameron Puckey
- Ken Hight
- Terry Rota
Key events arising during this period include:[14]
- The completion of Stage One of Dinsdale Court - a 44 unit Townhouse development headed by Steelgrave Investments Limited (a Limited Liability company with shareholdings by Paul Bary, an in-law of Kenyon).
- Auckland Commercial Apartments (ACA) - approximately 2,000 apartment units inheriting a similar concept to the Studio living development as adopted by the Sarvee Group. Key developments include St George, Central, Cornwall, McKenzie and May.
- Lakewood Plaza - a $95m apartment located in the heart of Manukau City, with a scheduled completion date of Q4 2016.
Duval 2014 Limited was removed from the Companies Office Register in Jun 2022.
2016-Present: Incorporation of Du Val Group NZ Limited
[edit]Du Val Group NZ Limited is the masthead entity that has existed from 2016 up to present.
Entities forming the consolidated Du Val NZ Group (as at September 2024) include:
- Du Val Management Limited (incorporated 2013)
- Du Val Developments Limited (incorporated 2014)
- Du Val Acquisitions Limited (incorporated 2016)
- DVFS Limited (incorporated 2016)
- Du Val Capital Partners Limited (incorporated 2017)
- Du Val Clubs Limited (incorporated 2018)
- Du Val Construction Limited (incorporated 2018)
- Du Val Architects Limited (incorporated 2019)
- Du Val BTR Limited (incorporated 2019)
- Du Val BTR GP Limited (incorporated 2019)
- Du Val HC Limited (incorporated 2021)
- Farham Limited (incorporated 2021)
- DVE Limited (incorporated 2022)
- Du Val CMUF GP Limited (incorporated 2022)
- Du Val Corporate Services Limited (incorporated 2022)
- Du Val Fashion Limited (incorporated 2022)
- Du Val GP Holdings Limited (incorporated 2022)
- Du Val Property Group Limited (incorporated 2022)
- Du Val PT NZ Limited (incorporated 2022)
- Du Val Sales Limited (incorporated 2022)
- Fiji Land Acquisition Limited (incorporated 2022)
- Clarke Media Group Limited (incorporated 2023)
During this period a number of special purpose vehicles (SPV) in the form of Limited Partnerships were created to house development projects, house related activities (such as property management) or to house investor capital for funds that Du Val had promoted:
- Du Val New Homes Limited Partnership
- Lakewood Plaza Limited Partnership
- Tui Terraces Limited Partnership
- McKenzie SPV Limited Partnership
- Du Val Education Limited Partnership
- Du Val Connect Limited Partnership
- Du Val Health Clubs Limited Partnership
- Du Val Development Fund No.14 Limited Partnership
- Earlsworth Limited Partnership
- Hill Top Apartments Limited Partnership
- Hillside Crossing Limited Partnership
- Edmonton Road Limited Partnership
- Sunnyvale Terraces Limited Partnership
- Te Awa Terraces Limited Partnership
- Investment Portfolio Management Limited Partnership
- Du Val Commercial and Mixed-Use Fund Limited Partnership
- Du Val Mortgage Fund Limited Partnership
- Du Val Opportunity Fund Limited Partnership
- Du Val Build To Rent Limited Partnership
The shareholdings of the following entities were transferred to Du Val Group NZ Limited from the respective related entities:
- Du Val Acquisitions Limited (from the JK & CM Clarke Trust, November 2016)
- Du Val Developments Limited (from the JK & CM Clarke Trust, November 2016)
- Du Val Management Limited (from the JK & CM Clarke Trust, November 2016)
- DVFS Limited (from the JK & CM Clarke Trust, November 2016)
- Clarke Media Group Limited (from Kenyon Clarke, July 2024)
2022-Present: Incorporation of Du Val Property Group Limited
[edit]Du Val Property Group Limited was incorporated in November 2022 in connection with a restructure of the business in advance of a planned Initial Public Offering on the main board of Stock Exchanges in Singapore or New Zealand.[15]
Entities forming the consolidated Du Val Property Group (as at September 2024) include:
- Du Val Building Limited
- Du Val Investments Limited
- Du Val Land Limited
- Du Val Property Management Limited
- Curie GP Limited
- Darwin GP Limited
- Einstein GP Limited
- Franklin GP Limited
- Galilei GP Limited
- Newton GP Limited
Whilst Du Val Property Group Limited is a majority-owned subsidiary of Du Val Group NZ Limited, it would have been envisioned that the listing of the Du Val business to a Stock Exchange would have taken place at this entity, based on the non-controlling shareholdings by former Mortgage Fund debenture holders, some of which had converted their debenture positions into equity.
2013-Present: JK & CM Clarke Trust and Karapiro Corporate Trustee Limited
[edit]The trust and trustee company is known to have existed since 2013.
Little is known regarding the financials of the trust however the interactions between the trust and the entities forming the Du Val group have been known to be 'one and the same' due to the web of interconnectivity between the trust and the business by way of related party transactions and balances. In August 2024, the trust and the trustee company were placed into Receivership.
Controversies
[edit]Warnings from Financial Markets Authority
[edit]Du Val's marketing and promotion of financial products has been marred by controversy for a number of years.
Financial Markets Authority – Te Mana Tātai Hokohoko (abbreviated FMA) is a New Zealand authority that regulates the financial markets in New Zealand.
Du Val has often utilised the wholesale investor exclusion in the Financial Markets Conduct Act - designed for investors considered highly experienced and/or well-resourced (investment institutions as an example).
In October 2021, the FMA ordered Du Val to remove advertising materials likely to mislead or deceive investors, claiming:
- that the statements by Du Val in relation to its Mortgage Fund contravened 'fair dealing' provisions in the Financial Markets Conduct Act because they created the impression that investing in financial products connected to property development was low risk
- that representations that there were no fees associated with the investment is misleading, as Du Val Capital Partners was entitled to 100% of the profit after the quarterly distributions were paid.
Du Val took some steps to amend or remove its advertising materials. The FMA however continued to see Du Val marketing materials as likely to be misleading.
The FMA issued a direction order for Du Val Group NZ Limited and Du Val Capital Partners to comply with select sections of the Financial Market Conducts Act governing fair dealing provisions, and to cease and desist from publishing promotional material that is likely to mislead or deceived as a result of the representations that Du Val's investments were low risk and that there are no fees associated with the investment.
Du Val filed an appeal against the direction order issued by the FMA. In July 2022, the High Court upheld the FMA direction order and dismissed all grounds of appeal.
In October 2022, the FMA commenced a review of wholesale investments into property related offers, following an increase in the number of complaints made and concerns about how these wholesale offers were being promoted. The FMA issued a warning to Du Val Capital Partners and Du Val BTR GP Limited as a result of incomplete / defective eligible investor certificates.
In March 2023, the FMA provided another warning to Du Val Capital Partners and Du Val Group following reports that the quarterly distributions owing to investors were suspended, and that the suspended distributions would be capitalised against the investments in advance of the conversion of the debenture holders' investments into equity of a proposed and restructured Du Val Property Group prior to listing on the New Zealand Stock Exchange. The proposed capitalisation of distributions into units was not permitted under the terms of the Limited Partnership agreement and that Du Val Capital Partners did not inform the investors of the underlying reason for the Board's resolution to suspend and capitalise distributions - being that the Mortgage Fund did not have adequate cash flow.
Litigation and Disputes
[edit]There has also been a number of litigations and disputes - both for Kenyon Clarke as an individual, as well as the Du Val Group.
--- vs Jeff Downey --- vs Stuart Goodfellow --- vs NBR
Business ventures unrelated to core operation of Property Development
[edit]--- Supplements --- Fashion
Solvency of the Du Val business
[edit]--- Contractors not paid --- Retentions --- "High-life"
Raid by the Financial Markets Authority with assistance from the New Zealand Police, Receivership and Statutory Management
[edit]On 2 August 2024, the High Court of New Zealand placed the entities forming the Du Val Group as well as related entities to the group into interim receivership at the request of the Financial Markets Authority – Te Mana Tātai Hokohoko.[16] The High Court ordered the interim Receiver (John Fisk, Stephen White and Lara Bennett of PwC) to furnish a report within ten working days outlining its recommendations and observations warranting further investigation.
On 21 August 2024, upon recommendation from the interim Receiver a total of four core Du Val entities and 46 subsidiaries were placed into Statutory Management[17] with other entities associated with the Du Val group (including the Family Trust) remaining in Receivership. On 5 September 2024 following a High Court hearing of the merits of public access to the Receiver's report, PwC released a redacted Receiver's report, containing its recommendations and observations.[18] PwC, now in capacity as Statutory Managers are now conducting operations of the Du Val group to ensure preservation of business value, as well as acting as Receivers for select entities associated with the Group. PwC's investigations are ongoing as to the conduct of the business, the structure of which has been described as complex. A Radio New Zealand interview with PwC's John Fisk has shed light on the business operations as being a 'plate of spaghetti', with a large debt burden and the business being 'hopelessly insolvent'.[19]
--- Expand on contents of Receivers report, including MF loan advances, BTR land acquisition accounting
Personal life
[edit]--- Charlotte the CFO
References
[edit]- ^ a b c d "My Net Worth: Kenyon Clarke, founder, Du Val Group". 25 September 2022.
- ^ "Huge residential property portfolio goes to mortgagee sale". 31 May 2010.
- ^ "Custodian Electrical Group Limited".
- ^ a b c "Receivers' first report on the state of affairs of Custodian Electrical Group Limited (in Receivership)". 9 February 2009.
- ^ a b "Receivers' final report on the state of affairs of Sarvee Funding Limited (in Receivership)". 17 May 2013.
- ^ "Liquidators' first six monthly report - Custodian Electrical Group Limited (in Receivership and in Liquidation)". 20 January 2010.
- ^ "Insolvency Act 2006 - Part 4 End of Bankruptcy".
- ^ "Local link to property fund". 21 December 2010.
- ^ "Du Val aims to raise £643 mln via two property funds". 26 August 2010.
- ^ "New Zealand's Du Val Group targets $1bn for debut funds". 10 August 2010.
- ^ "Du Val Funds". 14 May 2010. Archived from the original on 14 May 2010.
- ^ "Local link to property fund". 21 December 2010.
- ^ "Du Val People". 24 September 2014. Archived from the original on 24 September 2014.
- ^ "Du Val Portfolio". 24 September 2014. Archived from the original on 24 September 2014.
- ^ "Mum-and-dad investors threaten to take developer Du Val to court". 12 February 2024.
- ^ "Du Val Group placed into interim receivership by High Court". 2 August 2024.
- ^ "Du Val Group companies placed into statutory management". 21 August 2024.
- ^ "Report to the High Court of New Zealand on the affairs of Du Val Group NZ Limited and related entities (in Receivership)" (PDF). 16 August 2024.
- ^ "Missing minutes and unaudited accounts: Report lifts lid on Du Val's 'poor' governance". 6 September 2024.