The director of a Canterbury investment company failed to turn up at a High Court liquidation hearing about his businesses.Rangiora-based Chance Voight Investment Corporation and five of its related entities (CVI Group) face liquidation after the Financial Markets Authority (FMA) took action against the company, with investors potentially facing millions in losses.However, Chance Voight director Bernard Whimp was a notable absentee at the hearing, and he did not have a lawyer acting on his behalf in court.Whimp also had a last minute application to delay the hearing rejected by the court.On Monday, the High Court in Christchurch heard that the Chance Voight group was allegedly using new investor money for expenses."Records reviewed indicate that interest, and in some cases redemption payments to investors, were funded primarily through new investor funds," said Richard May, counsel for the FMA.As part of its forensic analysis, the FMA randomly selected two individual investors in Chance Voight's mortgage investment fund, in order to trace where their investment deposits ended up."[Analysis of one investor] shows that of the deposit ... a large proportion was used to pay another investor," May said.Breaking down how the investor's funds flowed, May said "you can see it immediately comes into a lawyer's trust account and then moves to the MIF fund [mortgage fund] -- so far so good"."Then a large proportion is paid to another investor, and the bulk of it goes to CVICL [Chance Voight Investment Corporation Limited], the top company, from where it is distributed far and wide," he said.May said the interim liquidators' report confirmed the FMA's concerns about the group."First of all, the CVI Group is materially insolvent. Secondly, investor obligations have been met primarily through new investor inflows," May said.He said the nature and significance of the FMA's preliminary findings were such that the FMA did not consider further investigations would likely alter its recommendations.While Whimp was not present, the court also heard that one of his complaints was that he had not been interviewed by the interim liquidators.However, May said he had been spoken to for about five hours.Associate Judge Lester reserved his decision.