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Capital + Merchant Finance: two more directors plead guilty to untrue statement
Posted By admin On February 5, 2013 @ 4:37 pm In Business,Latest Headlines,Police,PressRelease | No Comments
Capital + Merchant Finance directors Robert Sutherland and Colin Ryan have both pleaded guilty to charges of making untrue statements in offer documents and will be sentenced in Auckland next month.
The Australia-based pair admitted two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement, market watchdog the Financial Markets Authority said in a statement. They will be sentenced in the High Court in Auckland on March 15.
“The law requires directors to ensure that investors receive accurate information in disclosure documents,” FMA head of enforcement Belinda Moffat said. “FMA regards the guilty pleas of Mr Sutherland and Mr Ryan as reflecting their failure in their obligations to investors in this respect.”
The guilty pleas come a week after fellow director Owen Tallentire admitted similar charges. Tallentire is serving a five-year prison sentence after he was found guilty on two charges of theft by a person in a special relationship in a prosecution taken by the Serious Fraud Office.
The FMA’s case against directors Neal Nicholls and Wayne Douglas begins next week. Nicholls and Douglas were each sentenced to seven-and-a-half years in prison for their role in the fraud.
The fraud case was broken up into two trials, with the first part dealing with so-called ‘Hub’ property deals in Palmerston North, of which the three were acquitted. The trio were convicted in relation to the second part of the case relating to $28 million of related party transactions between 2004 and 2006.
The Serious Fraud Office is appealing the acquittals in the ‘Hub’ transactions.
Capital + Merchant Finance collapsed in 2007 owing some $167.1 million to about 7,500 investors.
Press Release – Financial Markets Authority
Two more directors of Capital + Merchant Finance have today entered guilty pleas to three charges laid by the Financial Markets Authority under the Securities Act 1978. Robert Gordon Sutherland and Colin Gregory Ryan, who reside in Australia, pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement. They will be sentenced on 15 March at the High Court in Auckland.
Under the New Zealand Securities Act and the Australian Commonwealth Corporations Act, their convictions mean they are automatically banned from managing companies in New Zealand and Australia for five years.
Last week another Capital + Merchant director, Owen Tallentire, pleaded guilty to the same charges.
“The law requires Directors to ensure that investors receive accurate information in disclosure documents. FMA regards the guilty pleas of Mr Sutherland and Mr Ryan as reflecting their failure in their obligations to investors in this respect,” said FMA Head of Enforcement Belinda Moffat.
The prosecution against Capital + Merchant directors Neal Nicholls and Wayne Douglas is scheduled to begin on 11 February.
Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.
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