Rangi Savage Senior declared bankrupt after failing to pay Powder Shed investors
A businessman who sold shares in his company under misleading pretences has been declared bankrupt after failing to compensate investors.
Rangi Wyatt Stephen Savage Senior was made bankrupt in the High Court at Auckland after an application by the Financial Markets Authority (FMA).
He was the sole director of The Powder Shed Tokoroa, which sold shares to more than 160 investors in 2020.
In 2025, the court found Savage had made false or misleading representations, made a regulated offer without a required product disclosure statement and accepted an application for a transfer of financial products without one.
Savage has since failed to pay more than $290,000 in court-ordered compensation, interest and penalties.
FMA head of enforcement Margot Gatland said: “The court ordered Mr Savage to compensate investors, and that money is still owed. A court order isn’t always the end of an enforcement matter.”
Between April and July 2020, Savage promoted the shares through online presentations and social media videos.
Savage also claimed a substantial dividend would be paid within the first 12 months.
About 65,000 shares were sold at US$1.20 each, with investors paying in US dollars or cryptocurrency.
The FMA said bank records showed Savage transferred investors’ money to his personal bank account and to pay debts and expenses of another company he had incorporated.
The FMA said Savage had failed to pay $126,214 in compensation ordered in February 2025, with $25,625.85 in interest and a $142,500 penalty payable to the Crown.
He was also banned from being a director, promoter or involved in the management of an entity in New Zealand for six years from February 2025.
Savage now lives in Australia and has said he does not have the means to pay the amounts ordered.
But Gatland said the fact he had moved overseas “doesn’t put Mr Savage beyond our reach, and it doesn’t stop us enforcing the court’s orders”.
The Official Assignee will now administer Savage’s estate, with the FMA seeking to recover the outstanding compensation, interest and penalty through the bankruptcy process.
The FMA said how much investors recover, if anything, will depend on the assets available.
Gatland urged people to exercise caution over investment offers made on social media.
“Before you hand over money, check whether there’s a product disclosure statement for the offer, and talk to a licensed financial adviser.”