Liquidators formally demand $780k from failed travel company We Are Bamboo

The liquidators have formally demanded almost $800,000 from the head of a failed eco-travel company that lost millions of dollars in customer deposits due to poor cryptocurrency trading.

But We Are Bamboo director Colin Salisbury has rejected the liquidators' suggestion that he breached his legal obligations. despite leaving hundreds of clients out of pocket by thousands of dollars.

Affected customers have shared their frustration at the news and said all of Salisbury's assets should be seized until their money is returned.

He Lower HuttSalisbury-based ethical travel company and colleague Mark Foster-Murray, announced its closure at the end of October 2022, partly blaming the failure of the business on Covid-19.

The company allowed customers to book international vacation packages that included a portion of time spent volunteering in local communities, as a way for travelers to give back to the places they visited.

When asked by some clients if they would be refunded the thousands of dollars they had already paid in advance for future vacations, the company told them via email that they would not receive refunds, invoking the "force majeure" section of its terms and conditions.. Most of the customers were from the United States, Great Britain, Canada and Australia.

Earlier this year, BDO NZ liquidators revealed in a report that the company's closure came after Salisbury invested more than $US2 million ($3.24 million) of client funds into multiple trading platforms. cryptocurrencies from October 2020 to mid-2022.

While most of the money was lost due to poor business decisions, around $800,000 was lost because Salisbury put it on fraudulent platforms that simply “ceased to exist.”

It was previously reported that all the money was lost, but in the latest report, BDO revealed that two "undisclosed" crypto platforms had been discovered during its investigation, containing cryptocurrencies worth $11,143.

"When asked, it appears that these platforms had been overlooked in our previous correspondence and the director subsequently transferred the balance to the liquidators' trust account as requested," the report said.

BDO has received 1,193 claims against the company, totaling more than $4.2 million. The average claim is $3,557.

The report said the investigation had been "difficult and time-consuming," in part due to Salisbury's use of cryptocurrency withdrawal platforms that were "unsophisticated" and did not provide reliable and traceable transaction history.

“The primary objective of these investigations has been to determine whether recoverable assets remain as a result of undisclosed or overlooked cryptocurrency purchases and transactions. “In our opinion, this is not yet conclusive, although the investigation is still ongoing.”

In addition to the possible recovery of assets, BDO is studying two methods to recover some of the money. This includes possible "clawback" of payments made to Salisbury, which could be possible under the Companies Act 1993. BDO is also investigating whether Salisbury breached his obligations as a director under the Act.

"In the absence of significant new information, a resolution through one or both of these causes of action will be the only avenue for meaningful distribution to creditors."

BDO formally wrote to Salisbury, demanding $781,187.

“The director, through his lawyer, rejected the liquidators' claims, including the suggestion that the director had breached his duties in the cryptocurrency investment strategy that ultimately cost the company more than $3 million.

"The liquidators have met with their solicitors to consider the points raised and intend to respond once further investigations have been carried out."

The report did not include all the details of these investigations.

One affected client, Terri Rogers, said she believed Salisbury should be held accountable and have all of his assets seized “until he pays his debts.”

"He had no qualms about dealing with us innocent travelers."

Another customer, Robyn Neal, said she had previously booked an “amazing” trip to Tahiti through Bamboo.

“I trusted these guys and they ruined the trusting side of me. . . I feel pain for the guide and the hosts who opened their hearts to everyone,” he said.

"Colin and the rest should heal everyone."

Jacqueline Wood said the “last insult” was that Bamboo tried to partly blame its customers for the closure.

He Herald He has attempted to contact Salisbury through various emails, phone numbers, social media and visits to his home, but he has not responded to requests for comment.

Melissa Nightingale is a Wellington-based reporter covering crime, justice and news in the capital. She joined the Herald in 2016 and has worked as a journalist for 10 years.