Tech Vault: $39k Owed as Liquidator Uncovers ‘Ponzi’ Model & Vulnerable Customer Targeting

A New Zealand company that sold electronics through aggressive sales tactics, targeting vulnerable consumers including an elderly woman with dementia, has been placed into liquidation. Tech Vault Enterprises, trading as HouseSmile, was fined $60,000 in Hamilton District Court and ordered to pay $7,500 in emotional harm reparation after pleading guilty to a breach of the Fair Trading Act relating to unconscionable conduct.

Pritesh Patel, the liquidator, detailed the company’s operations in his first report, released on January 30, 2026. He described a “Ponzi operation model” where funds received from new customers were used to fulfill orders for previous customers. The company, incorporated in April 2020, rarely held stock, instead purchasing goods from appliance shops to satisfy existing orders.

The liquidation proceedings reveal a complex financial web involving an intermediary company, Flo 2 Cash, which collected deposits from customers. Patel has written to Flo 2 Cash requesting the release of approximately $15,000, but has yet to receive a response. He also instructed creditors to cease payments to Flo 2 Cash.

The Commerce Commission initiated the legal action against Tech Vault, alleging unconscionable conduct. The company’s sales agents reportedly contacted customers through Facebook ads and unsolicited phone calls. In one particularly concerning case, despite being informed that a customer’s mother suffered from dementia and was unable to use a computer, sales agents continued to pressure her for over 18 months to make purchases of tablets, phones, and Bluetooth speakers.

Rahil Munir Tharani, listed as the sole shareholder and director of Tech Vault Enterprises, acknowledged the liquidation but claimed limited knowledge of Flo 2 Cash. “I don’t know about Flo 2 Cash. They’re a different entity,” he told the Herald. He also stated he was “fully co-operating” with the liquidation process but indicated health issues were preventing him from actively participating. “I’m not good at the moment,” Tharani said. “I’m not right with my health.”

The total amount owed to the 51 customers affected by the liquidation is $38,865.50. However, Patel noted that significant debts owed to the Inland Revenue Department (IRD) mean those customers who had already paid taxes will now be considered unsecured creditors, potentially reducing their chances of recovering their funds.

Patel’s report also indicates that the company’s financial situation was deteriorating prior to the Commerce Commission’s investigation and subsequent media coverage. He stated that the negative publicity led to diminished goodwill and a reduction in customer base. “The business was in effect sliding backwards,” he wrote.

The Commerce Commission has also filed separate proceedings against Brand Developers Limited, trading as The TV Shop, for alleged unconscionable conduct. If found guilty, businesses could face fines of up to $600,000, and individuals up to $200,000.

This case is one of the first two brought by the Commerce Commission under provisions addressing unconscionable conduct. The legal action underscores the Commission’s focus on protecting vulnerable consumers from predatory sales practices. The liquidation of Tech Vault Enterprises serves as a stark warning to businesses engaging in similar tactics.

The situation highlights the risks associated with aggressive sales strategies, particularly those targeting individuals who may be easily influenced or lack the capacity to fully understand the terms of a sale. The use of intermediaries like Flo 2 Cash further complicates the financial picture and raises questions about transparency and accountability within the company’s operations.

National Storage is currently holding a storage unit belonging to Tech Vault, but is refusing access due to outstanding rental payments. Patel is attempting to resolve this issue to gain access to any remaining assets that could be used to compensate creditors.