Dodgy telecommunications reseller Intagr8 Limited has avoided court action, despite owing creditors in excess of $4 million.
The findings come following the conclusion of a Commerce Commission investigation regarding allegations the company misrepresented the price and nature of its services when making sales in New Zealand.
After being placed into liquidation in December 2015 owing creditors in excess of an estimated $4 million, the company’s sole director and shareholder, Murray Taylor, immediately left New Zealand for Australia and has not returned.
But despite the scandal, the company has avoided court proceedings, as outlined during an investigation report publicly released this week.
“The Commission has concluded there is sufficient evidence to establish that Intagr8 likely breached the Fair Trading Act,” the report stated.
“However, it will not file court proceedings as any penalty imposed by the Court would either remain unpaid or be at the expense of creditors. A formal warning will instead be issued against Intagr8’s record.”
The Commission’s investigation focused on 29 complaints received between 14 April 2014 and 6 October 2015 with complainants alleging that Intagr8 salespeople misrepresented the price of the equipment they signed up for and the services they would receive.
In addition, the company - which also owes Vodafone in excess of $1 million - also faced allegations that customers were not informed they were entering into a rental agreement with a finance company, paying by direct debit, and that separate accounts would be issued for the telephone services and equipment rental.
As such, the Commission also assessed individual liability and has sent formal warnings to Taylor and Intagr8’s former National Sales Manager Stephen Morrissey, who resigned from Intagr8 in March 2015.
Intagr8 offered bundled telephone services and office equipment to small and medium-sized business customers with the equipment, including telephone systems, CCTV monitoring and security systems, printers and photocopiers, financed through third party finance companies that entered into a 60-month rental agreement with customers.