Former Immigration Minister Stripped of Licence After Bankruptcy and Legal Loss

By [Editor's Name] — In a recent development that has sent ripples through New Zealand’s immigration consulting sector, former immigration minister Tuariki Delamere has been stripped of his licence to practise as an immigration consultant. The decision follows a court ruling and a declaration of bankruptcy, marking a significant turn in the career of a once high-profile figure in New Zealand politics and immigration advice.

Delamere, who served as a Member of Parliament from 1996 to 1999, transitioned into the role of an immigration adviser after leaving the political arena. His reputation grew significantly when he became a go-to expert for individuals seeking residency through complex immigration pathways. However, that reputation has now been tarnished by a series of legal and financial missteps.

In 2012, Delamere entered into a business arrangement with Chinese businessman Yingheng Liu, who was seeking residency through a business visa. Liu contributed $500,000 to a venture known as TDA Botany, which was intended to refer clients to Delamere for immigration advice. However, Liu’s visa application was ultimately rejected, and Delamere’s subsequent appeals to both the Immigration and Protection Tribunal and the High Court were unsuccessful.

Liu, frustrated by the lack of return on his investment, returned to the High Court last month to seek a bankruptcy adjudication. At that time, it was revealed that less than $95,000 of the original $500,000 had been returned to Liu, leading to the court’s decision to declare Delamere bankrupt.

Immigration Advisers Authority registrar Duncan Connor confirmed that Delamere, now an undischarged bankrupt, is prohibited from practising as a licensed immigration adviser. As a result, Delamere’s licence was formally cancelled on Tuesday. Delamere has since expressed his intention to appeal the bankruptcy decision, though his options remain limited.

The initial court ruling found that the agreement between Delamere and Liu did not specify what would happen if Liu’s residency application was denied. This omission, combined with the fact that Liu had not used the funds on term deposit for the intended business purposes, led Immigration New Zealand to argue that the Entrepreneur Plus scheme’s requirements were not met. The scheme requires the creation of three new employment positions, which TDA Botany failed to achieve.

Delamere had previously helped Liu appeal the rejection of his visa application, but both the Immigration and Protection Tribunal and the High Court ruled against him. Liu later discovered that most of the $500,000 had been transferred to a current account used to cover TDA Botany's operating expenses, despite the agreement stating that Liu would be the sole signatory on the term deposit account. Delamere admitted that he and his son had both the authority to give bank instructions, contrary to the terms of the agreement.

Delamere is currently taking his complaint to the Banking Ombudsman over the advice he received regarding the withdrawal of funds from the term deposit. He stated that he sold the business to his daughter last year, though he still appears as a director and shareholder on the Companies Register for TDA Wellington and TDA Botany. Liu, on the other hand, owns a 30 percent share in TDA Botany.

Notably, Delamere was acquitted in 2007 of fraud charges related to business visa applications. He claimed at the time that the Serious Fraud Office had orchestrated a vendetta against him. However, the recent events have cast a long shadow over his past legal troubles and have once again placed him under scrutiny.

As the legal battle continues, the case highlights the importance of transparency and accountability in the immigration consulting industry. It also raises questions about the oversight of such services and the need for stricter regulations to prevent similar incidents in the future.

Analysis: This case serves as a cautionary tale for both immigration consultants and clients. It underscores the necessity for clear contractual agreements and the importance of adherence to immigration regulations. Delamere’s fall from grace is a stark reminder that even those with a high-profile background are not immune to legal and financial consequences.