Sharechat Logo

SFO adds Dominion Finance's Cropp to list of successful finance company prosecutions

Friday 12th April 2013

Text too small?

The Serious Fraud Office has added the scalp of former Dominion Finance and North and South Finance executive Paul Cropp to its tally of successful finance company prosecutions.

Cropp was today found guilty in the High Court in Auckland relating to related party lending totaling approximately $13.57 million in breach of the companies trust deeds, the SFO said in a statement. Former director Robert Whale and another associate with name suppression were found not guilty of five and three charges respectively.

"SFO are pleased to have brought another finance company case to an end," acting chief executive Simon McArley said. "These prosecutions deliver a strong deterrent to future offending."

The conviction takes the white-collar crime investigator's successful finance company prosecutions to four, after convictions in the Capital + Merchant Finance, Bridgecorp Finance and National Finance 2000 cases. The SFO has a few other cases in the pipeline, including South Canterbury Finance and Five Star Finance and is still to decide whether to pursue Hanover Finance.

Other finance company prosecutions, including Lombard Finance & Investments and Nathans Finance, were for securities law breaches rather than fraud.

McArley said the key to reducing the cost of economic crime is early action.

"SFO can only achieve this with strong interagency collaboration and the support of the community in reporting suspect and unethical behaviour," he said.

Dominion Finance Group had 5,937 debenture holders with $176.9 million invested at the time of receivership in 2008. North South Finance was put in receivership in 2010. Both were subsidiaries of NZX-listed Dominion Finance Holdings, which was placed in liquidation in 2009.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  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:

Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake
18th September 2019 Morning Report
Dairy product prices advance, bolstered by milk powders
MARKET CLOSE: NZ shares gain: F&P Healthcare rallies on big volume, Synlait extends gain
NZ dollar mixed after RBA says its ready to cut rate if necessary
OMV granted marine discharge consent for Great South Basin
More detail needed on migrant worker policy, big employer says
Briscoe Group says outlook uncertain

IRG See IRG research reports