Sharechat Logo

Belgrave's Stephen Smith jailed for 4 years over $18 mln fraud

Friday 7th June 2013

Text too small?

Former Belgrave Finance director Stephen Smith has been sentenced to four years in jail after pleading guilty to 25 charges for his role in an $18 million fraud relating to the collapse of the lender in 2008.

Smith was sentenced at the High Court in Auckland for his role in a number of transactions between June 2005 and March 2008 for the benefit of related entities of Belgrave, the Serious Fraud Office and Financial Markets Authority said in a joint statement. He pleaded guilty in April to 19 charges under the Crimes Act of theft by a person in a special relationship, four charges of false statement by promoter, one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee.

"This sentence brings us another step closer to bringing the criminal prosecution of the finance company collapses to a close," SFO acting chief executive Simon McArley said. "This will increasingly allow resources to be refocused toward proactive intervention in emerging areas of financial crime."

The charges were brought in a joint prosecution by the FMA and the SFO. Belgrave, which provided finance for property developments from funds raised via debentures and capital notes, was put in receivership in May 2008 owing $22 million to about 1,000 investors. It was placed in liquidation in April 2010.

The conviction means Smith is automatically banned from managing companies for five years.

Charges have also been laid against former director Shane Buckley, alleged controller of the company Raymond Schofield and legal advisor Hugh Hamilton. Buckley was sentenced to three years' jail after pleading guilty last August. Schofield was granted a stay of prosecution on the grounds of terminal illness and Hamilton has been committed for trial in February next year, the SFO said.

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:

NZ dollar bounces off four-year low; seen weaker
Vector urges regulatory change in low-interest-rate environment
Vector urges regulatory change in low-interest-rate environment
Govt moves against surprise Supreme Court 'black hole' tax ruling
Qantas CFO Race Strauss to join A2 Milk as CFO
Climate Committee seeks data, evidence for future carbon budgets
Spark's wobbly world cup start raises stakes for live-streaming - analysts
An algorithm dunnit: anatomy of Spark's mid-match surrender
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development

IRG See IRG research reports