At least one investor has more than half a million dollars caught up in the Televest crisis, it was revealed yesterday.

Mrs. Janis Rego, of Hamilton firm Rego Furniture, has more than $550,000 allegedly at risk.

She is one of more than 175 investors fighting in Supreme Court to get Televest wound up.

They are hoping that if it is placed in liquidation, they will be able to recover their cash.

In December, Televest and four related companies were placed in provisional liquidation.

Televest had been offering annual returns of seven to nine percent to investors. They bought preferred shares, which the company said could be redeemed upon 14 days' notice.

It has been claimed that about 500 investors are owed a total of more than $8 million.

Yesterday, a court hearing began into whether Televest Ltd. and its parent firm, Telecheck Holdings Ltd. (THL), should be wound up.

THL operated 10,000 Signature and Travel Card credit cards, and ran a cheque approval service for shops.

Directors of the group Mr. Richard Burns, Mr.

Thomas Burns and Mr.

Chris Donnachie are fighting the winding up petitions.

Mr. Saul Froomkin, lawyer for the Televest investors, told the court the firm was "absolutely, hopelessly insolvent''.

He said funds raised by offering preferred shares had been used for purposes not disclosed in the prospectus and not authorised by the board of directors.

Funds had been used to provide loans to the Burns brothers and Mr. Donnachie, who together controlled the company.

Mr. Thomas Burns borrowed $253,961, Mr. Richard Burns borrowed $1,591,670 and Mr. Donnachie borrowed $196,225, the court was told.

People were paid out by funds from fresh investors, he said, and "the bubble eventually burst''.

The affairs of the company were misconducted and mismanaged by the directors, Mr. Froomkin said.

The company had made "misrepresentations of fact'' in its 1993 prospectus, including claims that financial statements had been audited and that auditor Mr. Scott Hunter had consented to his report being used.

The company did not reveal that Mr. Hunter had resigned, said Mr. Froomkin.

"The investors were deceived by wilful or wilfully reckless misrepresentation as to the true facts, as a result of which they were induced to invest in this scheme.'' Mr. Narinder Hargun appeared on behalf of TBL, a Televest-related company which has already been ordered wound up.

He said THL should be wound up as it was insolvent. It owed $4 million and could not pay it back.

THL was owed money by another related company, CTRAK, but could only collect if CTRAK could collect from TBL.

TBL had no assets, except what it was owed from THL. "The circle is completed,'' he said.

Mr. Hargun added that THL had never been profitable. "It has never made a penny in terms of profits.'' Mr. Julian Hall, lawyer for the three directors, is due to cross-examine witnesses relied on by Mr. Hargun and Mr. Froomkin today.

He will then argue why THL and Televest should not be wound up.

The hearing, which involves witnesses flying from the United States and the United Kingdom, is expected to last about a week.