Sharechat Logo

Suspect company faces liquidation after director dies

Tuesday 16th July 2019

Text too small?

The registrar for companies has moved to dissolve wealth management company Denton Morrell after its director Matthew Butterfield died. 

The private wealth company, which specialised in creating trusts and partnerships for clients, had been probed by the Department of Internal Affairs for a suspected breach of anti-money laundering laws. 

Denton Morrell was outed by Radio NZ as a company suspected of involvement with a worldwide network of companies and assets connected to the families of Azerbaijan leaders.

An obituary in the NZ Herald said Butterfield, the company’s sole director and ultimate shareholder, died on June 9, aged 42 years. 

The registrar has started the court process to liquidate Denton Morrell and six companies linked to it - Spindrift Holdings, DM GP, DM Corporate Services, Denton Morrell Group, DM Wealth Solutions and Denton Morrell Holdings. The companies will come before the High Court at Auckland on Friday. 

The lawyer for the companies’ registrar, Nick Malarao, said applications to liquidate the companies and general partnerships were made because it is illegal to run a company without a director. 

The department says it had not yet taken further action against Denton Morrell but was working with its legal representatives to “resolve the matter.”

DIA had issued a formal warning under anti-money laundering legislation, stating that between November 2015 and May 2018 Denton Morrell failed to conduct customer due diligence, monitor accounts and establish, implement or maintain an Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) programme. 

While it did not allege actual money laundering, the department can issue a formal warning when it thinks a firm has engaged in conduct which it could be civilly liable for. 

A woman who answered the phone at Denton Morrell referred BusinessDesk’s query onto the company’s solicitors, who have not yet responded. 

The AML/CFT regime is relatively new to New Zealand and there have so far been two successful actions by the government. Ping An Finance was ordered to pay $5.29 million, although that company is now in liquidation. In the second case, Qian DuoDuo was penalised $356,000.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis
Graeme Hart trims global packaging empire with US$615m asset sale

IRG See IRG research reports