Archive | Five Star

2 Five Star directors jailed

Published 22 December 2010

2 directors of Five Star Consumer Finance Ltd, Nick Kirk & chairman Marcus MacDonald, were sent to jail yesterday on charges brought jointly by the Serious Fraud Office and the Ministry of Economic Development’s national enforcement unit.

The third director, Anthony Bowden, was sentenced to home detention & community service. General manager Neill Williams, who prosecutors argued was effectively a director, also pleaded guilty but had his sentencing adjourned for a disputed-facts hearing to be held in March.

Judge Rod Joyce sentenced Mr Kirk to 2 years 8 months in jail, Mr MacDonald to 2 years 3 months, on Crimes Act charges relating to the theft of $50.1 million by a person in a special relationship. They were sentenced to concurrent one-year terms on Securities Act charges brought by the national enforcement unit, and ordered to pay reparation of $92,756.

Mr Bowden was sentenced to 9 months’ home detention & 300 hours’ community service on Securities Act charges.

SFO chief executive Adam Feeley said in a post-sentencing release: “The SFO is pleased with the delivery of a custodial sentence.  This is the first sentencing in relation to a major finance company collapse, and continues the clear message from the courts as to the seriousness of white-collar crime.”

 Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation. 2300 investors held $54 million of secured debentures when Five Star Consumer Finance collapsed and the company had 11,200 loans totalling $65.5 million.

The receivers have issued civil proceedings against the directors, but these were adjourned until the criminal proceedings were completed. They’re currently set down for trial starting 12 March 2012. The receivers have repaid 22.5c:$1 to secured creditors.

Mr MacDonald was a consultant to law firm Phillips Fox, which was the solicitor to Five Star, and was a director of numerous companies, including Equity Investment Trust Co Ltd, First Kiwi Mortgages Ltd & Retail Franchisers Ltd, and was a former director of Porter Group Ltd, Remarkables Park Ltd & Shotover Park Ltd.

Mr Kirk was a director of First Kiwi Mortgages, Leasing Principals Ltd, Linford Ltd, Nest Egg Loans Ltd (removed from the register in 2007), Retail Franchisers, Retirement Nest Egg Ltd (removed from the register in 2007), Richmond Park Properties Ltd, Storage & Distribution Ltd, Vintage Finance Ltd, Vintage Rentals Ltd, Westminster Rentals Ltd & Whyte Adder No 18 Ltd.

Mr Bowden, an accountant, was a director of numerous companies, including Andromeda Investents Ltd, Ethical Agents, Equity Investment Trust Co and International Finance Trust Co (NZ) Ltd.

All 3 directors were banned from managing a company for 5 years from 23 March and Mr Williams was also banned for 5 years, starting on 29 May.

Earlier stories:

29 October 2010: MacDonald pleads guilty to Five Star Finance theft charges

30 November 2009: Five Star directors remanded on new charges

13 November 2009: 5 Star Finance quartet face more charges

21 June 2009: Five Star’s de facto director joins actual directors on banned list

8 April 2009: Five Star directors get 5-year ban

4 August 2008: 5 Star Finance quartet remanded

9 July 2008: Five Star directors face prospectus charges

U: The names behind the action, the week to 15 June 2008, part 1, Debenture company gets Five Star Finance wound up

30 August 2007: Five Star Finance latest to fold

Want to comment? Go to the forum.

 

Attribution: SFO release, phone interview, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

MacDonald pleads guilty to Five Star Finance theft charges

Published 29 October 2010

Former Five Star Consumer Finance Ltd director & law firm partner Marcus MacDonald pleaded guilty in the Auckland District Court on Wednesday to charges of theft by a person in a special relationship, which related to misuse of Five Star funds in breach of its trust deed requirements.

Serious Fraud Office chief executive Adam Feeley said: “This is the first result in relation to a major finance company collapse, and is hopefully indicative of things to come.”

Mr Feeley said after Mr MacDonald entered his plea the SFO’s strategy of focusing on larger-scale cases involving significant losses was “helping to reassure the investing public there is an effective law enforcement response to the financial sector fraud of recent years.

“We expect to conclude a further 4 major investigations this calendar year, but some of the more recent matters are likely to continue into next year.”

The SFO has also charged former Five Star directors Nicholas Kirk & Anthony Bowden and Five Star manager Neill Williams with offences relating to the misuse of funds. They are yet to be committed for trial.

Mr MacDonald was remanded to appear for sentencing on Wednesday 22 December, in conjunction with the sentencing of himself and other former Five Star directors in relation to Securities Act charges brought by the Ministry of Economic Development’s national enforcement unit.

Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation.

Mr Macdonald was a consultant to law firm Phillips Fox, which was the solicitor to Five Star, and was a director of numerous companies.

Earlier stories:

30 November 2009: Five Star directors remanded on new charges

13 November 2009: 5 Star Finance quartet face more charges

21 June 2009: Five Star’s de facto director joins actual directors on banned list

8 April 2009: Five Star directors get 5-year ban

4 August 2008: 5 Star Finance quartet remanded

9 July 2008: Five Star directors face prospectus charges

U: The names behind the action, the week to 15 June 2008, part 1, Debenture company gets Five Star Finance wound up

30 August 2007: Five Star Finance latest to fold

Want to comment? Go to the forum.

 

Attribution: SFO release, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

Short remand for Five Star quartet on new charges

Published 18 January 2010

After some confusion at the Auckland District Court today, the Five Star Finance group’s 3 directors & one allegedly de facto director were remanded until Tuesday 2 February for a status hearing on new Securities Act prospectus charges.

 

The Ministry of Economic Development’s national enforcement unit laid its first prospectus charges against directors Marcus MacDonald, Anthony Bowden & Nicholas Kirk in July 2008. Five Star manager Neill Williams joined them in August 2008.

 

Those charges related to Five Star Finance Ltd not having a prospectus when it should have. On those charges, they face a district court trial next March.

 

The unit has laid another 20 charges against the 4 men alleging false & misleading statements in investment statements & Five Star Consumer Finance Ltd’s September 2006 prospectus.

 

Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation.

 

Earlier stories:

30 November 2009: Five Star directors remanded on new charges

13 November 2009: 5 Star Finance quartet face more charges

21 June 2009: Five Star’s de facto director joins actual directors on banned list

8 April 2009: Five Star directors get 5-year ban

4 August 2008: 5 Star Finance quartet remanded

9 July 2008: Five Star directors face prospectus charges

U: The names behind the action, the week to 15 June 2008, part 1, Debenture company gets Five Star Finance wound up

30 August 2007: Five Star Finance latest to fold

 

Want to comment? Go to the forum.

 

Attribution: Court, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

Five Star directors remanded on new charges

Published 30 November 2009

The Five Star Finance group’s 3 directors & one allegedly de facto director were remanded in the Auckland District Court today until Monday 18 January at 2.15pm for a status hearing on new Securities Act prospectus charges.

 

The Ministry of Economic Development’s national enforcement unit laid its first prospectus charges against directors Marcus MacDonald, Anthony Bowden & Nicholas Kirk in July 2008. Five Star manager Neill Williams joined them in August 2008.

 

Those charges related to Five Star Finance Ltd not having a prospectus when it should have. On those charges, they face a district court trial next March.

 

The unit has laid another 20 charges against the 4 men alleging false & misleading statements in investment statements & Five Star Consumer Finance Ltd’s September 2006 prospectus.

 

Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation.

 

The 3 directors were banned in March from directing or managing companies for the maximum term of 5 years, and Mr Williams was banned for 5 years from 29 May.

Five Star Consumer Finance secured debentureholders have got back 22.5c:$1 on their original investments.

 

Earlier stories:

13 November 2009: 5 Star Finance quartet face more charges

21 June 2009: Five Star’s de facto director joins actual directors on banned list

8 April 2009: Five Star directors get 5-year ban

4 August 2008: 5 Star Finance quartet remanded

9 July 2008: Five Star directors face prospectus charges

U: The names behind the action, the week to 15 June 2008, part 1, Debenture company gets Five Star Finance wound up

30 August 2007: Five Star Finance latest to fold

 

Want to comment? Go to the forum.

                                                                                              

Attribution: Court, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

5 Star Finance quartet face more charges

Published 13 November 2009

The Ministry of Economic Development’s national enforcement unit has laid another 20 charges against Five Star Finance Ltd’s 3 directors & one allegedly de facto director.

 

They face a district court trial next March on Securities Act prospectus charges brought in July 2008. The new charges also allege false & misleading statements in investment statements & Five Star’s September 2006 prospectus. The 4 defendants are due to appear on in the Auckland District Court on the new charges on Monday 30 November.

 

Registrar of Companies, Neville Harris said the case was referred to the Companies Office by the Securities Commission. He said the Serious Fraud Office was conducting a separate investigation into possible breaches of the Crimes Act, some involving related-party transactions. “Its investigations are substantially advanced although any decision as to charges is unlikely until the first quarter of 2010.”

 

The enforcement unit laid its first prospectus charges against directors Marcus MacDonald, Anthony Bowden & Nicholas Kirk in July 2008. Five Star manager Neill Williams joined them in August 2008.

 

Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation.

 

The 3 directors were banned in March from directing or managing companies for the maximum term of 5 years, and Mr Williams was banned for 5 years from 29 May.

Five Star Consumer Finance secured debentureholders have got 22.5c:$1 on their original investments back.

 

Earlier stories:

21 June 2009: Five Star’s de facto director joins actual directors on banned list

8 April 2009: Five Star directors get 5-year ban

4 August 2008: 5 Star Finance quartet remanded

9 July 2008: Five Star directors face prospectus charges

U: The names behind the action, the week to 15 June 2008, part 1, Debenture company gets Five Star Finance wound up

30 August 2007: Five Star Finance latest to fold

 

Want to comment? Go to the forum.

                                                                                              

Attribution: Enforcement unit release, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

Five Star directors get 5-year ban

Published 8 April 2009

The 3 directors of the Five Star group of companies have been barred from directing or managing companies for the maximum term of 5 years.

Deputy Registrar of Companies Peter Barker said today Marcus Macdonald, Nicholas Kirk & Anthony Bowden were banned from running companies from 23 March. They also face a district court trial next March on Securities Act prospectus charges.

 

Five Star Consumer Finance Ltd went into receivership in August 2007 and other companies in the group followed it into receivership or liquidation. The 3 men were also directors of Antares Finance Holdings Ltd, Five Star Finance Ltd & Five Star Debenture Nominee Ltd.

 

Mr Barker said that, under section 385 of the Companies Act, “where a person has been a director of more than one failed company within 5 years, that person must satisfy the registrar that their management of the companies’ affairs was not, at least partly, responsible for the companies’ demise.”

 

Mr Macdonald, Mr Kirk & Mr Bowden were unable to satisfy Mr Barker that the way in which they managed the affairs of the Five Star group did not lead to the failure of those companies. Mr Barker found the directors’ failings to be “serious & fundamental” when he considered whether “the directors fully understand their duties & responsibilities”.

 

The report to the Registrar of Companies by the Ministry of Economic Development’s national enforcement unit alleged mismanagement including reckless trading, breaches of each of the directors’ duties under the Companies Act and the failure to maintain adequate books & records.

 

The directors asked that the decision on this matter be delayed until they had faced additional pending charges. They believed the result of this decision could prejudice the following criminal proceedings. However, Mr Barker said there was no reason to delay this decision as any other legal proceedings were “separate & distinct from these matters”.

Mr Kirk was also a director of First Kiwi Mortgages Ltd, Leasing Principals Ltd, Linford Ltd, Nest Egg Loans Ltd (struck off the register on 10 July 2007), Retail Franchisers Ltd, Retirement Nest Egg Ltd (struck off 10 July), Richmond Park Properties Ltd, Storage & Distribution Ltd, Vintage Finance Ltd, Vintage Rentals Ltd, Westminster Rentals Ltd & Whyte Adder No 18 Ltd.

Mr Bowden, an accountant, was a director of numerous companies, including Andromeda Investents Ltd, Ethical Agents Ltd, Equity Investment Trust Co Ltd & International Finance Trust Co (NZ) Ltd.

Mr Macdonald was a consultant to law firm Phillips Fox, which was the solicitor to Five Star, and was a director of numerous companies, including Equity Investment Trust Co, First Kiwi Mortgages & Retail Franchisers, and was a former director of Porter Group Ltd, Remarkables Park Ltd & Shotover Park Ltd.

Want to comment? Email bobdey@propbd.co.nz.

                                       

Attribution: Release from registrar, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading
WordPress Appliance - Powered by TurnKey Linux