SFO leaves Kiwi Finance to Securities Commission

Monday 18th April 2011 1 Comment

The Serious Fraud Office (SFO) is not pursuing a criminal prosecution against Kiwi Finance, saying an administrative or civil proceeding could get a better outcome in a case of such small scale.

Kiwi was placed into receivership in April 2008 owing approximately 42 investors $1.7 million. The SFO started investigating the company last November and worked with the Securities Commission.

The SFO said today that having considered the scale and nature of the alleged conduct it believed a civil or administrative remedy provided some opportunity for compensation of depositors.

"The Securities Commission has powers and functions that enable such an outcome, and this is a case which seems best suited to application of those powers," SFO director Adam Feeley said.

The SFO's decision was conditional on the commission being able to reach a satisfactory outcome.

"If, for any reason, the commission is unable to reach a suitable resolution within a reasonable time, we will reassess our position and may re-open the investigation."

NZPA

Comments from our readers

On 19 April 2011 at 1:09 pm Ivan Turk said:

Oh well thats good isn't it. As we all know the securities commission don't muck around. they will get stuck into them.......Tui ad.