Financial Trouble at Interglobal Limited...

Mike Henry, the 60-year old founder of the Auckland-based Mike Travel Insurance Limited, is seeing his mini-empire start to crumble on the eve of his retirement, as consequences of alleged wrongdoings committed over many years catch up with him.

According to sources, Mike Henry is attempting to sell expatriate health insurance provider Interglobal Limited, a company he controls. A forensic examination of publicly-available Interglobal Limited financial records indicates that Interglobal Limited is "a house of cards". In the most recently reported (2004) financial year, (Source: UK Companies Office), Interglobal Limited had revenue of only GBP1,914,601 (US$3,230,000), and a razor-thin net profit of only GBP7,792 (US$13,200). Cash reserves were a mere GBP315,280 ($535,976). It is unknown why Interglobal Limited’s auditor suddenly resigned in Nov. 2005, coincidentally around the time that details of Mike Henry wrongdoings started circulating on the internet.

Industry watchers suspect that Mike Henry brought in Stephen Hartigan, a respected industry professional, as CEO, in a desperate attempt to give the faltering company some credibility, with the aim of dressing Interglobal Limited up for a sale. It is unlikely that Mike Henry told Mr. Hartigan the true history of the business. Based on results, however, Interglobal Limited can be argued to be of negligible worth to an acquirer, from both a financial and a strategic perspective, given Interglobal Limited’s infinitesimal market share, low profitability, and the low valuation (GBP750,000) that Royal Bank of Scotland divested its 45% share for in August, 2004.

Another mystery is why some of the Interglobal Limited brokers falsely state on their websites and in advertising that Interglobal Limited has "over 800,000 members securely covered worldwide" (see "Globally Fictitious", below). An analysis of the published financial results reveals that the real number of customers is only a few thousand, which is less than 1% of the advertised number, and most likely is an intentional effort by Mike Henry and his minions to deceive the public, by attempting to paint a blatently false picture of financial health and massive scale, while the reality is that Interglobal Limited has an insignificant market share and is barely solvent.

And if Interglobal Limited’s financial problems were not enough, more trouble lies ahead. The ownership of the Interglobal business, with offices in the U.K. and New Zealand, is in dispute. The founder and a number of other persons have provided sworn statements and documents to the Serious Fraud Office in New Zealand, in which they detail allegations of mail and wire fraud, document fraud, conspiracy, duress, money laundering, embezzlement, defamation, theft of millions of dollars, and making false statements to the IRD, on the part of Mike Henry, and his business partner, Steven M. Nichols, in connection with their seizure of control of the Interglobal (formerly Global Healthcare) business, while its founder was recovering from a serious traffic accident.

Mike Henry NZ Limited was under contract as third-party administrator of the program at the time. Mike Henry and Steve Nichols are alleged to have committed duress and insurance fraud by threatening to withhold payment of tens of thousand of dollars in hospital bills if the founder did not cede control of the business. Mike Henry and Steve Nichols then registered new companies to transact the already-existing business, in an apparent attempt to cover up their alleged illegal acts, and allegedly proceeded to embezzle millions of dollars in income that was not theirs, according to a sworn statement provided by the founder of the business, which is accompanied by more than 800 pages of supporting documents. It is clear from the evidence that Mike Henry never purchased the business from the founder and played no role in creating the business. Steve Nichols further threatened to make trouble for the founder with the Inland Revenue Department if the founder did not leave New Zealand. There is evidence that Mike Henry NZ Limited then filed false declarations with the NZ Inland Revenue Department, in an attempt to create a New Zealand tax liability for the defrauded founder, stating that he had been an employee of Mike Henry NZ Limited, when in fact MHNZ was employed by the founder as third-party administrator, and Mike Henry had no business involving itself in the founder's tax issues. The London solicitors for the defrauded founder have rendered an opinion that Mike Henry and Steve Nichols defrauded the founder out of his business and income.

Mike Henry-controlled Interglobal Limited lost its underwriting contract with a Lloyds of London syndicate in October, 2002, when it was brought to the syndicate's attention that Interglobal was trading illegally in Japan.

Further investigation has turned up a number of former business associates who have submitted sworn affidavits and documented evidence detailing multiple acts of alleged fraud committed by Mike Henry and Steve Nichols.

Mike Henry sold a 50.1% stake in Mike Henry Travel Insurance Limited, a distributor of travel insurance sold to consumers through Flight Centre, House of Travel, Harvey World, Holiday Shoppe, and various other travel agencies, to Insurance Australia Group (IAG) in July, 2004. The remaining 49.9% is scheduled to be sold to IAG in the second quarter of 2006, according to NZ Commerce Commission filings.

Shareholders of Insurance Australia Group have reason to call for the cancellation of the Mike Henry Travel Insurance Limited acquisition, on the grounds that doing business with Mike Henry has significant potential to tarnish IAG's good reputation, and as further details of extensive wrongdoing on the part of Mike Henry and Steve Nichols are revealed, the value of the Mike Henry brand name will be eroded or rendered worthless, enriching Mike Henry at the expense of IAG shareholders.

This story was prepared in part with information from the following source:

UK Companies Office: http://wck2.companieshouse.gov.uk
Search on: Interglobal Limited, - Order Documents, - Last Accounts to 30/6/04

Business Partner, Daughter of Mike Henry Travel Insurance Limited Founder, Convicted of Drug Trafficking, Sentenced

Michael Joseph Cavanagh, a longtime business partner of Michael Paul Henry, a.k.a. Mike Henry, founder of Auckland, New Zealand-based travel insurance provider Mike Henry Travel Insurance Limited, was convicted of drug trafficking and sentenced to 12 years in prison on May 12, 2005. Deborah Anne Henry, daughter of Mike Henry, was also convicted and received a 2-year sentence.

Mike Henry is known to the public in New Zealand for a series of TV ads in which persons who had purchased Mike Henry Travel Insurance experience an improbable number of misfortunes whilst traveling overseas.

Police identified Cavanagh, 31, as a prominent member of an outlaw biker gang, and a major figure in the illegal drug trade and organized crime in New Zealand. He was convicted on a number of charges of manufacturing and dealing in methamphetamine. Also found guilty and sentenced were Deborah Anne Henry, 31, daughter of Mike Henry, who was in possession of drug-making equipment and drugs for distribution.

The trio were partners in the now-defunct Matopo Gallery, in which Mike Henry was the majority shareholder. Matopo was involved in the sale of African artworks, which were imported by another Mike Henry company, Henry Imports and Exports Limited. The Henry's and Cavanagh were in business together for some 8 years, until around the time of Cavanagh`s and the younger Henry`s arrests.

Cavanagh and Ms. Henry were involved in the manufacture and trafficking of the illegal `club drug` Methamphetamine, a precursor to Ecstasy. The bust was one of the largest seizures of the illegal drug in New Zealand history, and has made a major impact on supply.

During a dramatic six-week trial, the jury heard evidence of clandestine methamphetamine labs and safety deposit boxes stuffed with cash, bullion, expensive jewelry, watches and bonus bonds. As the financial condition of the Matopo Gallery business "went down the gurgler", in the words of Crown Prosecutor Ross Burns, "the finances of the accused persons increased dramatically as money poured in from the manufacture and sale of methamphetamine".

His daughter`s and Cavanagh`s increasing wealth, as well as Cavanagh`s gang connections, mysteriously appears to have gone completely unnoticed by senior Matopo partner and majority shareholder Mike Henry.

Examination of Matopo Gallery documents on file with the NZ Companies office reveal that, prior to 9-August 2005, there were only 10,000 shares outstanding. On that date, Mike Henry issued 482,583 new shares to himself, prior to winding down the company on Sept 25, apparently to pay off company debts and claim a significant tax write-off, while quietly sweeping under the rug the issue of his affiliation with drug traffickers.

Photo Credit: New Zealand Herald

This story was prepared in part with information from the following sources:

New Zealand Herald Articles Chronicling the Trial, Conviction, and Sentencing of Deborah Anne Henry and Co-Defendants (click on link to read the full story) :
Details of Henry-Cavanagh Drug Trafficking Trial, 1-Apr-2005
Court Finds Henry & Co-Defendants Guilty of Drug Crimes, 6-Apr-2005
Court Hands Henry 2-year Prison Sentence for Drug Crimes, 20-May-2005

New Zealand Biker
The Illicit Drug Business In New Zealand

New Zealand Companies Office: http://www.companies.govt.nz
Search on Director Search, Shareholder Search, keyword: Michael Paul Henry
Company Search, keywords: Matopo Gallery, Henry Imports & Exports Limited

New Zealand Commerce Commission: http://www.comcom.govt.nz
search on: Mike Henry Travel Insurance Limited

Mike's Shell Game: Too Much of a Good Thing?

UPDATE: Mike Henry has moved his web of NZ shell companies to a holding company in the U.K.

Some people can really get carried away at a bargain sale.

It costs very little to register a company in NZ, just NZ$100 (about US$66). The idea behind this is to encourage entrepreneurship, but Mike Henry, founder of Mike Henry Travel Insurance Limited, seems to be trying to take advantage of the NZ government's benevolence in a big way.

Mike Henry is listed as a shareholder and/or director in a complex web of over 30 companies listed with the New Zealand Companies Office. Total investment: around NZ$3,000. Many of these companies have nearly identical names and less than a handful appear to be viable business concerns. Although Mr. Henry claims to be one of the largest insurance product providers in the region, the numbers just don't support those claims. Total gross revenues (after commissions paid) of the so-called "Mike Henry group of companies" are estimated at less than US$5million, and net income is estimated at well under US$1million.

If most of the Mike Henry companies are shells, then what's going on here?

One aggrieved former Henry business partner claims that Henry issued shares to him in one shell company, but ran the business through another, and then Henry claimed that the company was bankrupt at the time Henry decided to get rid of him.

Another possible explanation is that Henry likes to crow that he's chairman of 30 companies, no doubt to create an illusion of credibility. For those not familiar with Henry's accounting methods, the sheer volume of companies gives the appearance that the so-called "Mike Henry group of companies" is a massive conglomerate, when in fact the only thing massive about this so-called group of companies is Henry's efforts to make it appear that way.

Case in point: Mike Henry Travel Insurance Limited. Sales of NZ$45million certainly sounds impressive, but that’s only part of the story. According to industry insiders, 46% of each sales dollar goes to pay commissions to travel agents, and 50% goes to the insurer. What's left? Just 4%, or NZ$1.8 million (US$1.2million), out of which all the overhead has to be paid, leaving maybe 10 cents on the dollar or an estimated US$120,000 in net income.

Out of the 30-odd companies in Henry's so-called "group", only about 5 are estimated to earn any profit, and all are in similarly low-margin businesses. It therefore comes as no surprise that Henry was dabbling in things like importing rocks from Africa to sell at the Matopo Gallery.

An examination of NZ Companies Office records indicates that Mike Henry frequently registers and de-registers companies or changes the names for no apparent reason, often using his longtime accountant, Philip Judge, of Auckland-based HLB Wylie McDonald, to file the paperwork. Mr. Judge is listed as a shareholder in some of the Mike Henry-controlled entities, including Mike Henry Travel Insurance Limited, a potential conflict with his auditing role.

Following is a list of NZ-registered companies naming Mike Henry as a director. You can find the same list if you go to the NZ Companies Office site and do a director search. Run a name search on any of the companies and you can see any name changes, director changes, and examine all documents filed in connection with that company. Be sure to check the list of "struck off" companies (Matopo Gallery appears there). Contrast this with a major corporation like Microsoft, which has only one company registered, and you will realise that this is something the IRD should have a closer look at.

Multiple companies dealing with the same business are grouped together

• Mike Henry Travel Insurance Limited

• MH Group Holdings Limited
• Henry Corporate Trustee Limited
• Henry Calder (International) Limited

• First Rescue and Emergency (NZ) Limited (a.k.a. First Assistance)

• Inbroke Corporation Limited
• MH Inbroke Limited

• Cover-More Insurance Services (NZ) Limited

• CMAC Limited
• CMAC Injury Management Limited
• Claims Management and Consultanty Limited
• International Claims Management Limited

• Driveright Limited
• M H Driveright Limited

• Interglobal Limited
• Interglobal (South East Asia) Limited
• Interglobal Insurance Services Limited
• MH Interglobal Limited
• Global Insurance Limited
• Global Healthcare Limited
• Global Healthcare (Japan) Limited

• Henry Thomson Holdings Limited

• Premium Group Marketing Limited
• Premium Group Holdings Limited

• Insure Direct Limited

• Timtech Chemicals Limited
• Timtech International Limited

• Travel Wizard Limited
• MH Wizard Limited

• ICM Limited

• M G A Insurance Services Limited

• Net Sentry International Limited

• MH Management Services Limited

Mike Henry Chairman Gets Naked for Charity

A nude bag-snatch-and-run race, sponsored by the New Plymouth Nudists Association for the benefit of local charities, was held on April 1st.

Mike Henry, chairman of the Mike Henry Group of Companies, snatched 3rd place in the 50m relay in the men's over-age-60 category, and raised $135 for the Paralympics Organisation of New Zealand http://www.paralympics.org.nz

"I got such a big rush, that I'm going to participate again next year," gushed Henry.

Allegations Against Interglobal: Their Response?...Denial

Mike Henry and Steve Nichols dig themselves into a deeper hole...

http://www.interglobalpmi.com/index.php?page_id=95

Denial Mode
It seems that Mike Henry and Steve Nichols are stunned that they have finally been caught.

Their letters containing indeciferable scrawl for signatures posted on Interglobal Limited's web site simply deny the well-documented allegations, without any rebuttal, and irrelevantly state the credentials of unrelated third-party companies as if to say, "we do business with these big companies, so that means we can't possibly be guilty of any crimes". Mike Henry complains that no proof of the allegations is offered. But ironically, most of the evidence was created by Mike Henry and/or Steve Nichols, so it must be very familiar to them already. Those who know Mike Henry and Steve Nichols well may find it quite out of character that they refuse to enter into a public debate, as this is their usual method of settling disputes. However, as they are the accused parties, and in light of the overwhelming evidence against them, it comes as no surprise that Mike Henry, Steve Nichols, their lawyer, and their underlings have nothing of any substance to say.

The impossible task at hand for a Mike Henry defense counsel: Defending the indefensible and justifying the unjustifiable. Recommended advice: Tell Mike Henry and Steve Nichols to give back their illicitly-obtained gains and leave the insurance industry permanently, and thus avoid the inevitability of total loss and the likelihood of joining Mike Henry's daughter in the NZ correctional system.

Winner: Dubious Medical Insurance Provider of the Year "Award"

Mike Henry-controlled Interglobal Limited likes to crow about all the so-called industry "awards" it has won. What Interglobal doesn't mention is that the insurance-buying public does not play any role in choosing the winners.

In fact, the winners are chosen either by the brokers selling the insurance, who are likely to "vote" for their favorite product, giving them another sales tool should their favorite product "win", or by an panel of people who get some free publicity and their photo posted on a website in return for acting as a "judge", who appear to merely pass the awards around from year to year.

These awards are part of a PR campaign created by various trade publications, which use these so-called "awards" to promote their own industry and their customers (advertisers), which are the companies in the industry. Three different trade publications have been identified which annually give out their own version of these so-called "awards". They are:

• Health Insurance Magazine
• Portfolio International
• International Investment

Note by the titles that these are not mainstream magazines for the public, but are for the industry, and in fact, are not even available to the public. There are so many different categories of awards, that almost no company participating in this slick PR scheme goes home empty-handed. Such awards are meaningless if the actual users of the product do not pick the winners.

As health insurance customers play no role whatsoever in selecting the winners, there is therefore nothing democratic at all in this "voting" process, and to use the word "vote" or to use these "awards" in advertising as an implied endorsement of any particular product to unknowing consumers is a serious misrepresentation of facts and borders on fraud.

Editorial: Stop Doing Business With the Mike Henry Companies

Insurers, brokers, intermediaries, service providers, and customers should stop doing business immediately with Mike Henry.

The insurance business is built on honesty and good faith. Persons involved in this industry must conduct themselves and their business affairs with the highest levels of integrity. It is necessary that the industry self-police itself in order to avoid erosion of public trust. Thus, the industry is responsible for ridding itself of persons that refuse to play by the rules.

The evidence provided by a number of parties proves beyond a reasonable doubt the allegations of multiple acts of fraud, embezzlement of several million dollars, conspiracy, and a host of other acts of wrongdoing and bad faith on the part of Mike Henry and Steven Murray Nichols. Furthermore, Mike Henry been proven in court to have had long-term relationships with criminals involved in the illegal drug industry, with links to organised crime, an industry that has a detrimental effect on society and ruins millions of lives. The native of South Africa is furthermore disgracing his adopted country, New Zealand, by flouting its laws and making New Zealand appear to be easy on white-collar crime.

Mike Henry and Steve Nichols are unfit to work in this industry and must be removed from it immediately. It's a joint effort, and it's up to you to do your part by ceasing to do business with these corrupt individuals, and to pass the message on to anyone you know who does business with the companies listed at the bottom of this page.

A one-hour presentation containing documents and highlights of evidence against Mike Henry has been prepared for the corporate market. A representative is available to give your company or government agency a personal presentation of the evidence. An appointment can be arranged by sending email to The Moderator: insurancewatch@gmail.com

Why stop doing business with Mike Henry? Because it's the right thing thing to do.

UPDATE:
The March presentation road trip was a resounding success. Persons in a number of entities and others that do business with the so-called Mike Henry "group of companies" expressed grave concern when viewing the overwhelming body of evidence against Mike Henry and Steve Nichols, and indicated that they have commenced their own investigations. Appointments for the next road trip are nearly booked solid, so contact The Moderator now in order to avoid missing out.