Sharechat Logo

SFO appeals Capital + Merchant verdict

Wednesday 22nd August 2012

Text too small?

The Serious Fraud Office will appeal the not guilty verdicts of two former directors of failed lender Capital + Merchants Finance involving a Palmerston North development known as "The Hub Properties."

In July, Neal Nicholls and Wayne Douglas were found not guilty of charges under the Crimes Act of theft by a person in a special relationship and one of making a false statement as a promoter. The charges involved $14.4 million of related party lending on the Palmerston North development.

"There are important points of law that have significance not only to this case but also the ongoing finance company prosecution," SFO chief executive Adam Feeley said in a statement. The decision to appeal has not been taken lightly, he said.

At a second trial the directors, together with the finance company's chief executive Owen Tallentire were found guilty on charges involving fraudulent transactions valued at about $28 million which occurred between 2004 and 2006.

Capital + Merchant went into receivership in November 2007 and owes $190 million to about 7,000 investors. It went into liquidation in December 2009. Nothing was recovered from the $190 million.

Nicholls and Douglas will appear for sentencing in relation to the second trial on Aug. 31.

BusinessDesk.co.nz



  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:

AIA June 2020 Monthly Traffic Update and July 2020 Preview
PCT - Delivering on strategy underpins strong operating result
KFL - August 2020 monthly update
BRM - August 2020 monthly update
MLN - August 2020 monthly update
Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update

IRG See IRG research reports