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 owing creditors approximately $39,000. 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, according to a report released January 30, 2026.
Liquidator Pritesh Patel detailed the company’s operations, describing 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. Patel is currently fielding calls from victims, some describing the company’s actions as “thieving,” according to reports.
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 has instructed creditors to cease payments to Flo 2 Cash.
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, stating the two entities are separate. “I don’t know about Flo 2 Cash. They’re a different entity,” Tharani told the New Zealand Herald. But, Patel stated that Tharani has been “fully co-operating” with the liquidation process. Tharani also cited health problems as a reason for his limited involvement. “I’m not good at the moment,” he said. “I’m not right with my health.”
The Commerce Commission initiated 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 instance, 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. The elderly customer, 87 years old, was reportedly sold an iPad or notepad.
Patel said the business operated by taking money from customers through Flo 2 Cash, then using those funds to fulfill orders for previous customers. He added that Tech Vault had “inadequate systems in place to have a good financial control on deposits coming in and payments going out.” The liquidator has seized the company’s storage unit in Hamilton, but access is currently blocked due to outstanding rental payments to National Storage.
The 51 customers affected are owed a total of $38,865.50. Patel also noted that a significant amount is owed to the Inland Revenue Department (IRD), which means those customers who have already paid taxes will become unsecured creditors. The Commerce Commission investigation and subsequent media coverage contributed to a decline in the business’s goodwill and customer base, Patel said.
This case represents one of the first two Commerce Commission cases alleging unconscionable conduct. If found guilty of unconscionable conduct, businesses can be fined up to $600,000, and individuals up to $200,000.
