Sharechat Logo

Timber King, NZ Steel Distributor ordered to pay $401k over steel mesh misrepresentations

Thursday 26th April 2018

Text too small?

Related building products companies Timber King and NZ Steel Distributor have been fined $400,950 after pleading guilty to making false and misleading representations about their steel mesh products used to strengthen buildings. 

 

Judge Robert Ronayne sentenced the two companies in the Auckland District Court on April 24, reducing the fine from a starting point of $660,000 for the firms' cooperation, guilty pleas and taking into account their claimed financial position.

 

The Commerce Commission brought five charges against Timber King and two against NZ Steel Distributor under the Fair Trading Act over claims on batch tags, invoices and receipts and on a forged test certificate claiming the steel had been independently tested and complied with the Australia-New Zealand standard for reinforcing steel and was suitable for structural use in an earthquake zone, which the judge called "straight out fraud". 

 

"It cannot escape the attention of the court that earthquakes are a feature of the New Zealand landscape, both metaphorically and literally, and that is a matter of ubiquitous knowledge," Judge Ronayne said. "The defendants have, in that environment, chosen to deliberately offend in the way described, deterrence is required in these circumstances. Very strong, specific and general deterrence is required in these circumstances." 

 

Wholesaler NZ Steel Distributor and retailer Timber King shared directors Jackie Liu and Ringo Liu. 

 

The Commerce Commission investigated several steel products companies over whether representations of steel mesh met the required standard, laying charges against some and warning others. 

 

(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:

Take care to avoid "unnecessary" cost in electrifying economy - Vivid
Is this the calm before a storm of credit card thrashing?
Shrinking meat and dairy product manufacturing weighs on growth outlook
Jon Macdonald to stay on as Trade Me boss through takeover tussle
Shareholders’ Association wants Finzsoft to come clean
A2 rings in more executive changes under new CEO Hrdlicka
NZ dollar dips as China-US trade tensions cast pall over global markets
No end in sight to global market turmoil
MARKET CLOSE: NZ shares rally on speculation of flat US rate track; Spark gains
Fed's wait-and-see signal keeps NZ dollar steady for the week

IRG See IRG research reports