Archive | Securities law

Belgrave Finance director jailed

Published 31 August 2012

Former Belgrave Finance Ltd director Shane Buckley (44) was sentenced to 3 years’ jail in the Auckland District Court yesterday on a range of charges under the Companies, Crimes & Securities Acts.

He pleaded guilty in May to 19 charges laid by the Serious Fraud Office of theft by a person in a special relationship, 4 charges of false statement by a promoter under the Crimes Act, one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee, which had been brought by the Financial Markets Authority in a joint prosecution.

The charges related to more than $18 million of loans Belgrave made to various entities between June 2005-March 2008.

Serious Fraud Office chief executive Adam Feeley said after sentencing: “While there may be understandable fatigue in some quarters with yet another finance company sentencing, it is important to the integrity of law enforcement to ensure that the legal system holds those responsible to account for their financial crimes. There are many new financial crimes that the Serious Fraud Office is progressively investigating, but these investigations will not be at the expense of successfully resolving the long tail of finance company prosecutions.”

Belgrave’s former finance director, Stephen Smith (43) and an associate, Ray Schofield (49), were committed early this year for trial on similar charges. The trial date is set for 29 April 2013.

Belgrave Finance, incorporated in 2000, provided financial accommodation & mortgage facilities for commercial & residential property developments.  It sourced funds for lending primarily from the issue of securities to the public in the form of debenture stock & convertible capital notes.

The company was placed in receivership in 2008 owing about $22 million to 1000 investors.  When it was placed in liquidation in April 2010, it was the 20th finance company to collapse in 2 years.

The charges that followed alleged the 3 defendants misrepresented to investors how their investments in Belgrave would be used, and subsequently used those funds in an unauthorised manner.

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

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May Wang’s district court appearance deferred again

Published 10 September 2010

May Wang – the woman fronting the multi-million-dollar Chinese bid for the Crafar farms – had her status hearing on Companies Act charges deferred again in the Auckland District Court yesterday.

The status hearing was adjourned to Thursday 14 October, with a trial set for Thursday 2 December. The 3 charges were brought against Miss Wang under the Companies Act by the Ministry of Economic Development national enforcement unit.

Miss Wang was a director of property developer Dynasty Group Ltd, wound up in October 2008, and of other property & finance companies, and the charges relate to company books, not attending a creditors’ meeting for the Dynasty group and leaving the country without telling the liquidator.

Her debt-compromise proposal with creditors, under which she’s offering them 6.5c:$1, is due back for hearing in the Auckland High Court on Tuesday-Wednesday 2-3 November.

Companies she is fronting are seeking to buy a portfolio of 16 farms owned by the family of Allan Crafar and offered for sale in a tender run by the receivers, Michael Stiassny & Brendon Gibson (KordaMentha Ltd).

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

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Commission adds criminal charges to Lombard civil proceedings

Published 16 April 2010

The Securities Commission confirmed yesterday it had added criminal charges to the civil proceedings it’s filed against Lombard Finance & Investments Ltd directors Sir Douglas Graham, Michael Reeves, Bill Jeffries & Laurie Bryant.

 

The criminal charges were laid under section 58 of the Securities Act and carry a maximum penalty of 5 years’ jail or fines of up to $300,000. They were laid in the Wellington District Court on Wednesday.

 

The commission said the company’s receivers at PricewaterhouseCoopers had helped with the investigation.

 

Commission chairman Jane Diplock said after the civil proceedings were filed: “These proceedings follow extensive investigations by the commission since Lombard Finance & Investments went into receivership on 10 April 2008 owing $127 million to 4400 investors. According to the receivers, it is likely that secured debentureholders will receive less than 30% of their investment back. Unsecured creditors are likely to receive no return.

 

"The commission alleges that Lombard Finance & Investments’ offer documents & advertisements misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies and the company’s overall financial position.”

 

Earlier stories:

14 April 2010: Commission issues proceedings against Lombard directors, reverse takeover nears completion

14 March 2010: Lombard shareholders approve reverse takeover

23 February 2010: Reverse takeover of Lombard to proceed

6 July 2009: Lombard announced reverse takeover as it faces NZX suspension

2 June 2008: Lombard acting chairman blames receivership for loss

4 April 2008: Reeves blames systematic industry failure as Lombard seeks moratorium

 

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

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Securities Commission files proceedings against Nuplex & 6 directors

Published 14 April 2010

The Securities Commission said yesterday it would file civil proceedings today against Nuplex Industries Ltd, 5 current directors & one former director for breach of the company’s continuous-disclosure obligations for 2 months just over a year ago.

 

It’s the first continuous-disclosure case the commission has brought.

 

The directors involved are managing director John Hirst (Sydney), non-executive directors Robert Aitken (chairman, Sydney), Barbara Gibson (Melbourne), David Jackson (Glendowie) & Michael Wynter (Sydney), and former non-executive director Bryan Kensington (St Heliers).

 

Commission chairman Jane Diplock said the commission was seeking declarations of contravention, pecuniary penalties (maximum penalty of up to $1 million/defendant) & compensatory orders: "The commission alleges that from 22 December 2008 until 19 February 2009 Nuplex breached its continuous-disclosure obligations under the NZX listing rules & the Securities Markets Act 1988 by failing to disclose to the market a breach of a banking covenant, and that both Nuplex & the directors are responsible for this failure.

 

“This matter came to the commission’s attention through its own market surveillance. The commission acknowledges NZX provided information regarding an initial price inquiry.”

 

Ms Diplock said the commission would lodge a statement of claim at the Wellington High Court this morning.

 

Nuplex, which specialises in chemicals manufacture, is listed on both the NZX & the ASX. The company reported record half-year profit in January, only a year after being forced to renegotiate its bank debt and at the time raise equity, while it was trying to make an acquisition in Europe.

Mr Hirst is due to retire as chief executive at the end of June after 9 years in that job and a total 43 years with the company. In February, Nuplex appointed Boral Ltd executive Emery Severin to replace him.

One current director, Peter Springford (St Heliers), was appointed on 1 September 2009 – after the alleged offence – and doesn’t face the proceedings.

Mr Kensington, a former chairman of Ernst & Young, was on the board for 16 years and chaired the audit committee. He retired at the 2009 annual meeting, last November, and was replaced as audit committee chairman by Mr Jackson, also a former chairman & audit partner of Ernst & Young.

 

Fred Holland retired at the 2008 annual meeting after 43 years with the company & its predecessor, Revertex Industries (NZ) Ltd. He immigrated from England after first coming to New Zealand in 1962 to resolve technical issues with the company’s first resin plant, and finished with nearly 20 years as managing director and 12 years as chairman.

 

The way the new chairman told it:

 

After being a sound but unexciting company for years, Nuplex began an aggressive expansion programme during the past decade, which went close to its undoing in the global recession. This is how the new chairman, Mr Aitken, explained events to the 2009 annual meeting:

 

“The year started very strongly for the company despite growing fears that the turmoil in the financial markets would flow through to the general economy. At that time the board was aware that the company’s gearing was towards the upper end of its target range. A capital-raising was discussed on several occasions, but was delayed for 2 reasons. Firstly, professional advice that the market had little appetite at that time for capital-raisings to repay debt – how matters have changed! Secondly, we were close to making a significant acquisition in Europe and, as our earnings remained strong and there was significant headroom in our covenants, it was decided to try to combine a general capital-raising to reduce gearing with a raising to fund the proposed acquisition. “At the annual meeting in late October 2008, we signalled a softening in demand across most segments of our business but, with cost reductions already in place, earnings remained pretty much on track. The expectation was that market conditions would remain challenging, but that Nuplex was well placed to weather these conditions. We recognised that strengthening our balance sheet by reducing our overall gearing levels and extending the terms of our debt facilities, as well as driving operational improvement across our businesses, would be critical achievements. We advised in November 2008 that we had secured credit approval to extend $$300 million of the $A350m million in credit facilities due to mature in late 2009 – $A200 million to mature in November 2011 (3 years out) and $A100 million in November 2010 (2 years out). Shortly afterwards we pulled out of acquisition discussions with our target as market uncertainty increased. “The speed with which the credit markets froze and the way in which the economic slowdown occurred from late 2008 was unexpected by most. For Nuplex, matters were compounded because of a rapid deterioration in the value of the $NZ against our major trading currencies. Nuplex’s treasury policy sought to put in place a natural hedge by matching foreign currency debts with foreign currency assets & earnings. But the depreciation of the $NZ against the $US, Euro & $A in late 2008 resulted in a significant increase in bank debt levels when translated into $NZ. Combined with a softening in earnings in the later stages of the first half, there was increasing pressure on the company in relation to its senior debt cover ratio covenant. “Under normal market conditions, a request for a company of Nuplex’s standing to secure a waiver or softening in the covenant threshold would have been readily agreed to. However, these were not normal conditions. As the full effect of the US sub-prime crisis rolled out, there was a virtual collapse of the world financial system, with credit markets freezing almost overnight and many lenders facing their own extraordinary challenges. Negotiations with our bankers were, at times, difficult & drawn out over a considerable period. “Whilst discussions with our bankers continued, the general decline in equity prices, in combination with concern over our funding, resulted in a significant decline in Nuplex’s share price to around $1. In late February, Nuplex secured a waiver from compliance with its senior debt cover ratio covenant until April 2009 and an increase in covenant threshold through to September. This gave the company time to reduce its debt facilities in order to be able to operate within the amended terms of its bank facilities. “The directors initially sought to raise approximately $60-80 million through a placement to institutional & habitual investors and a renounceable rights issue to existing shareholders. As a consequence of the fear & uncertainty in the financial markets at the time, there was pushback from institutional investors that

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Commission issues proceedings against Lombard directors, reverse takeover nears completion

Published 14 April 2010

The Securities Commission said yesterday it had issued civil proceedings under the Securities Act against Lombard Finance & Investments Ltd directors Sir Douglas Graham, Michael Reeves, Bill Jeffries & Laurie Bryant.

 

Commission chairman Jane Diplock said the regulator was also continuing its investigations in relation to Lombard Finance & Investments and its parent company, Lombard Group Ltd (and their respective directors) and was considering further proceedings.

 

Meanwhile the restructuring of Lombard’s insurance business neared completion, through the reverse takeover of Perth company Australian Consolidated Insurance Ltd.

 

On the legal proceedings, Ms Diplock said: “These proceedings follow extensive investigations by the commission since Lombard Finance & Investments went into receivership on 10 April 2008 owing $127 million to 4400 investors. According to the receivers, it is likely that secured debentureholders will receive less than 30% of their investment back. Unsecured creditors are likely to receive no return.

 

"The commission alleges that Lombard Finance & Investments’ offer documents & advertisements misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies and the company’s overall financial position.

 

“The commission alleges that the directors made false statements in the registered prospectus dated 7 September 2007, as amended by a memorandum of amendments dated 24 December 2007 and investment statements dated 28 December 2007. The documents stated the company’s financial position had not materially & adversely changed since the company’s last balance date and that the prospectus was not misleading by failing to properly refer to adverse circumstances. However, the commission alleges this was false and the directors’ statements misled investors.

 

“In addition, the commission alleges that a DVD advertisement distributed during 2007 & 2008 contained similar untrue statements about the financial position of the company.

 

“The commission has applied for declarations of civil liability & civil pecuniary penalties of up to $500,000 against each of the current 4 directors. Under the Securities Act, these applications must be made together.

 

“The commission’s main purpose in making them is to take the first step towards compensation for investors who invested under the 7 September 2007 prospectus, as amended by a memorandum of amendments on 24 December 2007. A declaration of civil liability is conclusive evidence that can be relied upon by either the commission or investors themselves in any subsequent claims against the directors for compensation. The commission will consider pursuing compensation claims in due course, should it be in the public interest to do so.

 

“Investors can take their own civil compensation proceedings, whether or not the commission also has power to do so. The civil proceedings are issued under section 55C & related sections of the Securities Act. They were filed on 1 April at the Wellington High Court.”

 

Ms Diplock said the commission acknowledged the assistance of PriceWaterhouseCoopers, the Lombard Finance & Investments receivers, with this investigation.

 

Mr Reeves was Lombard’s driving force, as managing director. Sir Douglas was chairman of the listed company but resigned the day after the receivers stepped in. Mr Bryant, a public relations man, resigned a week later.

 

Sir Douglas was National’s Justice Minister, Attorney-general & Minister in Charge of Treaty Negotiations in the 1990s. Mr Jeffries was a Labour Cabinet minister in the late 1980s, holding the justice & transport portfolios.

 

Sir Douglas issued a statement saying the directors didn’t accept the allegations and would defend all the proceedings: “The prospectus was prepared by management, commented on by the auditors & solicitors and then accepted by the Companies Office. The document was sent to the trustee. None of these advised the board of any concerns with the final warning.

“Finally, I must record my dismay that it has taken 2½ years to make the allegations and very disappointed the commission has never raised with me any concerns it had over the prospectus prior to filing proceedings.”

 

The NZX-listed parent company, Lombard Group, Ltd changed its name to Insured Group Ltd on 31 March and has completed the migration of its place of incorporation from New Zealand to Australia, in accordance with the reverse takeover proposal put to shareholders last June.

 

Lombard/Insured’s takeover offer for all the shares in Australian Consolidated Insurance closed on Monday with 95.28% acceptance and managing director Wayne Miller, of Perth, said the company would proceed to compulsory acquisition of the balance. Mr Miller said the Securities Commission action wouldn’t impact on the continuing insurance company. On completion of the reverse takeover, all the shares in Lombard Finance & Investment had been transferred to a new holding company, First One Ltd, which was owned by Lombard’s original shareholders. Lombard had previously written off the value of its shareholding in Lombard Finance & Investment. “The proceedings are part of the history of Lombard, which shareholders in the listed company have left behind as the company moves into its new future as a substantial participant in the insurance broking business in Aust

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Commission takes criminal & civil action against Capital + Merchant directors

Published 22 March 2010

The Securities Commission has laid criminal charges and issued civil proceedings against Capital + Merchant Finance Ltd directors Neal Nicholls, Owen Tallentire, Colin Ryan & Robert Sutherland. The commission has also laid criminal charges against Wayne Douglas, who resigned as a director in February 2007. Commission chairman Jane Diplock said on Friday the commission had made extensive investigations since Capital + Merchant Finance went into receivership on 23 November 2007 owing $167 million to 7000 investors. The receivers have said it was likely none of this would be recovered. “The commission alleges that Capital + Merchant Finance’s offer documents & advertisements misled investors by misrepresenting the investment risks, especially in relation to related-party lending, insurance cover & liquidity.” The commission alleges the directors made untrue statements in the registered prospectus & investment statement dated 15 August 2006, mainly in respect of related-party lending & loan management. The commission also alleges the current 4 directors made similar untrue statements in the registered prospectus & investment statement dated 10 September 2007, as well as untrue statements about liquidity & cashflow, and incorrectly stated in the prospectus that no loans were impaired and the company’s financial position had not materially & adversely changed since its last balance date. In addition, the commission alleges that 5 advertisements distributed during 2007 contained untrue statements about insurance cover for capital secured debenture stock and some of the matters referred to above. These claims don’t apply to Mr Douglas, who had resigned his directorship by then. The commission further alleges that Mr Nicholls & Mr Ryan knowingly misled the commission. Criminal charges Most of the criminal charges are laid under section 58 of the Securities Act and carry a maximum penalty of 5 years’ imprisonment or fines of up to $300,000. Criminal charges are also laid against Mr Nicholls & Mr Ryan under section 59A of the Securities Act, carrying a maximum fine of $300,000. The charges were filed at the Auckland District Court on 18 December 2009 and first court appearances are scheduled for Thursday 8 April. Civil proceedings The commission has applied for declarations of civil liability & civil pecuniary penalties of up to $500,000 against each of the current 4 directors. Under the Securities Act these applications must be made together. Ms Diplock said the commission’s main purpose in making them was to take the first step towards compensation for investors who invested under the 10 September 2007 prospectus: “A declaration of civil liability is conclusive evidence that can be relied upon by either the commission or investors themselves in any subsequent claims against the directors for compensation. The commission will consider pursuing compensation claims in due course, should it be in the public interest to do so. “Investors can take their own civil compensation proceedings, whether or not the commission also has power to do so.” The civil proceedings are issued under section 55C & related sections of the Securities Act. They were filed on 30 November 2009 at the Auckland High Court.

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

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Clegg & Co directors charged

Published 17 July 2009

The Companies Office has laid criminal charges in the Auckland District Court against Clegg & Co Finance Ltd directors Brian Clegg & Pamela Nicholson-Clegg, relating to 2 prospectuses & statements to the company’s trustee. They’re due to appear in court on Thursday 30 July.

 

Mr Clegg faces 8 charges and Ms Nicholson-Clegg 7. Ms Nicholson-Clegg resigned as a director on 25 September 2007 and the company’s trustee, Covenant Trustee Co Ltd, called in receivers on 4 October 2007.

 

Registrar of Companies Neville Harris said yesterday: “Both directors face charges relating to statements in the company’s 2005 & 2006 prospectuses and statements made to the company’s trustee. Brian Clegg faces a separate charge in relation to misleading or deceiving the Securities Commission.”

 

The Companies Office’s National Enforcement Unit began its investigation after the Securities Commission referred the matter to it.

 

The receivers, Brian Mayo-Smith & Shaun Adams (BDO Spicers Ltd), said in their report on 5 May they’d made 4 payments to investors, worth a total 42.5c:$1 or $6.4 million, and were about to make another 4.5c payment, taking the total payout to $7.1 million.

 

Those payments have been funded primarily from the finance & leasing receivables ledgers, but also from collateral security over the directors’ Algies Bay property. The Cleggs moved there from Parnell in early 2007.

 

The receivers said they’d continued to downgrade anticipated returns – from a total of 56-69c:$1 expected last August to a range of 50-60:$1 in their latest report. Clegg & Co had 496 investors at the time of receivership, with deposits of $15.1 million.

 

The Clegg & Co Finance receivers had the group’s parent company, Clegg & Co Ltd, wound up in April 2008, with an expected shortfall of $4.3 million.

 

Mr Clegg & Ms Nicholson-Clegg face 2 charges each under section 58 of the Securities Act for providing false statements in the company’s 2005 & 2006 prospectuses, and a further 5 charges each under section 377 of the Companies Act for providing false information in relation to the extent of related-party lending in reports provided to the trustee. Mr Clegg faces one charge under section 59A of the Securities Act for misleading the Securities Commission.

 

Maximum penalties are 5 years’ jail or a fine up to $300,000 under section 58; a fine up to $300,000 under section 59 and, if the offence is a continuing one, a further fine up to $10,000 for every day the offence is continued; and 5 years’ jail or a fine up to $200,000 under section 377. 

 

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Attribution: National Enforcement Unit release, receivers’ & liquidators’ reports, story written by Bob Dey for the Bob Dey Property Report.

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National Finance directors’ depositions hearing set back to mid-2010

Published 27 May 2009

The 3 directors of the collapsed National Finance 2000 Ltd have managed to get their depositions hearings on prospectus & financial reporting charges adjourned to mid- 2010.

 

The depositions hearing on the financial reporting charges have been set down for 3 weeks starting 10 June 2010.

 

In the Auckland District Court yesterday, prosecutor Brian Dickey argued against the proposed delay of depositions on the prospectus charges, saying the delay was too long and questioning the need for a 4-week hearing.

 

2 of the directors, Allan Ludlow & Carol Braithwaite, instructed lawyers just before the depositions hearing on the prospectus charges was to have started in March, resulting in an adjournment. The third director, Auckland lawyer Tony Banbrook, continues to represent himself.

 

Jeremy Bioletti, counsel for Mr Ludlow, said the prosecution evidence could take up to a week and Mr Banbrook intended to call 20 witnesses.

 

Although Mr Dickey said the whole hearing could be over in a week – therefore making it possible to book earlier court time – Judge Mark Perkins told him: “If they want to king-hit your case, they’re entitled to do it. If you go to the registrar and get an earlier hearing I will set an earlier date.”

 

But after the judge stood the matter down, Mr Dickey was unable to get a firm date acceptable to all parties. There was a possibility of a March hearing, but the hearing of the indictable prospectus charges needed to follow the summary financial reporting charges. The result was a 4-week depositions hearing of the indictable charges starting 12 July 2010.

 

Colin McCloy & John Waller (PWC) were appointed receivers of National Finance 2000 & 5 other companies in Mr Ludlow’s Payless Cars group in May 2006. The receivers sold the loan book to Cynotech Holdings Ltd (chairman Allan Hawkins) in October 2006.

 

All 3 National Finance directors were banned last October from acting as company directors. Mr Ludlow & Ms Braithwaite were both prohibited for 4½ years and Mr Banbrook for 4 years, all from 14 October.

 

Earlier stories:

3 November 2008: National Finance directors’ depositions hearing set for March

25 November 2008: National Finance directors banned as they await Securities Act trial

24 October 2008: National Finance directors remanded on prospectus charges

5 October 2008: National Finance 2000 directors face criminal charges

12 March 2007: National Finance receivers take principal repayments to 40c

8 October 2006: Allan Hawkins buys National Finance (Payless Cars) loan book

26 July 2006: Receivers say 45% of National Finance loan book in arrears

7 June 2006: Under 50% back for National Finance secured investors, zilch for subordinateds

U column part 2, 28 May 2006: Handful of National Finance investors get money back now

U column part 6, 21 May 2006: Receivers at 6 companies in Ludlow’s Payless Cars group

 

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

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National Finance directors’ depositions hearing deferred after last-minute hiring of lawyers

Published 30 March 2009

The 3 directors of the collapsed National Finance 2000 Ltd had their depositions hearing on prospectus & financial reporting charges adjourned to the end of May today.

 

2 of the directors, Allan Ludlow & Carol Braithwaite, only instructed lawyers last Thursday for the hearing, which was to have started before justices of the peace in the Auckland District Court today. The third director, Auckland lawyer Tony Banbrook, is representing himself.

 

The directors were charged last October and the depositions date was set in November. But Jeremy Bioletti, hired by Mr Ludlow last Thursday, said a number of issues still needed to be canvassed. These included whether the hearing should be before JPS or a district court judge, and whether the outcome of a Serious Fraud Office investigation should be reached before a trial.

 

Mr Bioletti said he had a 6-week trial starting on 4 May and another starting in July, but “it’s not just a question of squeezing this (depositions hearing) in. Because the defendants have been self-represented, from a defence point of view the thing’s been on auto-pilot.”

 

Mr Banbrook said he, too, could not fit a hearing in any earlier than the end of May and the JPs set a return date of Tuesday 26 May at 10am as a pre-depositions date.

 

Mr Banbrook also told the JPs – as he waved a weekend newspaper – “There is going to be an application by all the defendants for a permanent stay of the application.” A Sunday paper story about Mr Ludlow was “just a part of the negative publicity about these defendants,” he said.

 

Colin McCloy & John Waller (PWC) were appointed receivers of National Finance 2000 & 5 other companies in Mr Ludlow’s Payless Cars group in May 2006. The receivers sold the loan book to Cynotech Holdings Ltd (chairman Allan Hawkins) in October 2006.

 

Earlier stories:

3 November 2008: National Finance directors’ depositions hearing set for March

25 November 2008: National Finance directors banned as they await Securities Act trial

24 October 2008: National Finance directors remanded on prospectus charges

5 October 2008: National Finance 2000 directors face criminal charges

12 March 2007: National Finance receivers take principal repayments to 40c

8 October 2006: Allan Hawkins buys National Finance (Payless Cars) loan book

26 July 2006: Receivers say 45% of National Finance loan book in arrears

7 June 2006: Under 50% back for National Finance secured investors, zilch for subordinateds

U column part 2, 28 May 2006: Handful of National Finance investors get money back now

U column part 6, 21 May 2006: Receivers at 6 companies in Ludlow’s Payless Cars group

 

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

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Bankrupt McEwan scores reparation order

Published 5 March 2009

McEwan Group & Investors Forum director Dan McEwan, 66, has followed up his bankruptcy on 26 February over a debt of nearly $1 million with a district court order to repay 2 investors $16,000 – half what they claimed.

 

Auckland District Court judge Philippa Cunningham found property investment promoter Dan McEwan & 2 of his companies guilty in December of breaching Securities Act by offering securities to the public without issuing a prospectus or related document.

 

Peter & Susan Gale of Dunedin wanted to be counted as habitual investors so they could invest in McEwan schemes. Initially their application was declined, but that was reversed after they persisted.

 

Earlier stories:

U: The names behind the action, the week to 1 March 2009, part 3, Dan McEwan bankrupted

11 December 2008: McEwan found guilty of Securities Act breach

 

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Attribution: Court judgment confirmed – I wasn’t in court for the detail today, story written by Bob Dey for the Bob Dey Property Report.

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