- Fay Richwhite
Fay, Richwhite & Company is the
investment vehicle ofSwitzerland -basedNew Zealand merchant bankers Sir Michael Fay andDavid Richwhite .The firm was the prime focus of the "
Winebox Inquiry " which dealt with, among other things, tax-avoidance arrangements in theCook Islands . The publicity surrounding the inquiry generated considerable public ill-feeling towards Fay and Richwhite, and was one of the principal reasons for their emigration toGeneva . Fay, Richwhite were investors in theBank of New Zealand , which was sold toNational Australia Bank in 1992.Fay and Richwhite were also involved in a series of transactions between 1986 and 1993 involving their companies European Pacific; Capital Markets; Fay, Richwhite; the
Bank of New Zealand ;Tranz Rail ; andTelecom New Zealand , transactions in which they personally gained over half a billion dollars - at the same time as their minority shareholders lost $277 million cite web|url=http://www.nzherald.co.nz/topic/story.cfm?c_id=316&objectid=12689 |title=Winebox winners and losers|author=Brian Gaynor |publisher=New Zealand Herald |date=August 28 1999 |accessdate=2007-07-05] .Fay and Richwhite also pocketed $274 million from sales of
Telecom New Zealand share options in September 1993 without having to put up any capital in advance.Fay and Richwhite have lived in
Geneva since the late 1990s.Tranz Rail
Fay and Richwhite were the Government's adviser on New Zealand Rail Limited from 1990 to 1993 and then distanced themselves from the arrangement to sell the company in 1993, before they bought 40% of the shares and led a consortium with
Wisconsin Central Railway (40%) andBerkshire Partners (20%). New Zealand Rail was renamed Tranz Rail in 1995, and listed on the New Zealand Sharemarket that year, with Fay Richwhite selling down their shareholding.In late 2004, the New Zealand Securities Commission launched an investigation into the company regarding alleged insider trading. In June 2007
David Richwhite , (along with his shell company Midavia Rail, formerly Pacific Rail) agreed to pay NZ$20 million, but did not admit liability for the claims.cite web|url=http://www.radionz.co.nz/news/latest/200706181236/settlement_reached_in_tranz_rail_insider_trading_case|title=Settlement reached in Tranz Rail insider trading case|author=Radio New Zealand |accessdate=2007-06-18]References
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