Ocean Sailing Expeditions Under Investigation Amid Insolvency Claims and Unpaid Debts
Ocean Sailing Expeditions (OSE) operated a business model where investors purchased a 'secured interest in the yacht' for up to $100,000. This entitled them to annual payments of up to 20 percent, sailing credits, or discounted voyages. The model stipulated a refund of the initial investment at the end of a five-year term, as evidenced by a shareholder's certificate.
Liquidator's Investigation
David Hows, a yacht master, is currently under investigation by a liquidator regarding the collapse of his former Australian company, OSE QLD Pty Ltd. The company reported debts exceeding $565,000 and held 95 cents across two bank accounts at the time of its collapse. A statutory report by liquidator Mackay Goodwin indicated that OSE QLD Pty Ltd had traded while insolvent since March 2022. The liquidator is also examining transactions involving LV2 Pty Ltd, another Australian company co-owned by Mr. Hows' wife.
Specifically, the transfer of $875,332 in investor membership funds to LV2 Pty Ltd prior to OSE Pty Ltd's collapse is under review. A December 19 report to the Australian Securities and Investments Commission (ASIC) stated, "Our review of the company’s financial record in our possession has identified transactions that may be considered uncommercial totalling $296,441. These transactions may also be considered unreasonable director-related transactions."
Mr. Hows disputes the claim that his former company traded while insolvent for over three years. He stated that he provided information to the liquidator to substantiate his claims and asserted that the liquidator's report was "rushed" and contained "errors," released shortly before a holiday period.
Investor Accounts
Kelly McRae and Jonathan Plesman
In 2020, Kelly McRae and Jonathan Plesman invested $50,000 from their self-managed superannuation fund into Ocean Sailing Expeditions via Willow Vale Consulting Pty Ltd, another entity associated with Mr. Hows. They reported that dividends were not paid as expected. Ms. McRae stated that concerns arose when Mr. Hows allegedly failed to meet financial obligations to them while continuing to promote new investment opportunities. She also indicated that the limited dividend payments received appeared to be connected to funds from new offerings. The couple is reportedly owed $80,525 in unpaid dividends and principal. They rejected a repayment plan on December 15 that proposed yacht sales and required them to waive participation in the OSE QLD Pty Ltd liquidation. They are among multiple investors who have filed complaints with ASIC concerning Mr. Hows and his companies. The 72-foot yacht Te KaihĹŤpara is currently impounded in Auckland.
Jason Haigh
Jason Haigh, employed as skipper of the yacht Silver Fern by Ocean Sailing Expeditions in April 2024, stated he observed ongoing sales of sailing trips to new customers despite reported inability to pay suppliers, contractors, and crew. Mr. Haigh initiated Federal Court action to recover a debt of approximately $15,000. This debt was reportedly paid prior to Christmas after Mr. Hows paid over $100,000 to secure the release of Silver Fern from impoundment. Mr. Haigh claims he is still owed approximately $10,000 in unpaid wages for his work on Te Kaihopara. He reported that Mr. Hows requested additional time for payments and offered partial settlements. According to Mr. Haigh, during a May 2025 briefing, Mr. Hows cited challenging trading conditions and tight cash flow, requesting payment delays. Partial payments were then made before ceasing in late June, preceding the August 2025 liquidation of OSE QLD Pty Ltd.
Matt Harvey
Matt Harvey leased his 22-meter ketch, Salt Lines, to Ocean Sailing Expeditions in late 2021 for voyages around Australia and the South Pacific. Mr. Harvey stated he is owed approximately $160,000 and that private and commercial resolution attempts were unsuccessful. He described the process of pursuing resolution as demanding and causing "significant financial and personal stress." Reports indicate that Mr. Hows owes staff more than $200,000 in total.
Mr. Hows' Statement
Mr. Hows declined to confirm the total amount owed to creditors, citing commercial sensitivity and potential adverse effects on vessel sale prices. He acknowledged that some dividends had not been paid on schedule. Mr. Hows stated that over $2.7 million had been invested in yacht maintenance and upgrades over the past five years. He attributed financial strain to the increasing costs of the membership program and described the previous business model as "too generous." He indicated that a current restructure aims to transition the business from leasing vessels and hiring contract crew to a model utilizing owner-operators. Under this revised model, owner-operators would own the vessels, manage their own crews, and receive a revenue share from bookings to cover costs and generate profit.