Financial Markets Authority charges directors of OPI Pacific Finance with making untrue statements

Tuesday 5th November 2013

The Financial Markets Authority is charging four directors of failed lender OPI Pacific Finance, which owes more than 10,000 investors about $247 million, with making untrue statements in offer documents.

Directors Mark Lacy, Jason Maywald, David Anderson and Craig White are scheduled to appear in Auckland District Court on Dec. 3, the authority said in a statement. The Securities Act charges carry a maximum term of five years' prison or a $300,000 fine.

OPI, which provided finance for commercial property investments and developments, went into receivership in September 2009 and was put into liquidation in November 2011. The authority alleges OPI's offer documents seeking money from investors in 2007 contained untrue statements relating to the performance and management of the business.

"This included a failure to disclose to investors adverse changes to the financial position of the company resulting from the advance of A$100 million to MFS Pacific Investments Pty Ltd, a related party finance company based in Australia," Belinda Moffat, the authority's head of enforcement, said in the statement.

OPI secured debenture holders have been repaid up to 25 cents in the dollar. The receiver of OPI said in 2010 that unsecured creditors were unlikely to get anything.

OPI's trustee, Perpetual Trust, called in the receiver in September 2009 after a Queensland Supreme Court ruling put the parent company into liquidation.

BusinessDesk.co.nz

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