Anthony Banbrook 'going bankrupt'

HAMISH MCNICOL
Last updated 16:42 06/06/2014

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A director of failed finance firm National Finance says he has not been able to pay reparations of $75,000 because he has suffered losses five times those of any investor and is "going bankrupt".

Anthony Banbrook was sentenced in March last year to eight and a half months' home detention and ordered to pay reparations of $75,000 for making an untrue statement in a 2005 prospectus.

He has not yet paid the reparations, which were due a month after he was sentenced.

National Finance went into receivership in May 2006 owing $24.8 million to more than 2000 investors.

The Crown sought in the High Court in Wellington today that Banbrook be made to pay the money by 5pm on Monday or a warrant for his arrest be issued.

Justice David Collins said Banbrook could face up to two years' jail for failing to pay the reparation orders.

Banbrook, who represented himself, said he had been told he could pay the reparations in quarterly $3750 instalments, and he had already made one payment.

He said he had lost more than $1m in the National Finance fallout, five times that of any investor, and his bills continued to rise.

"I'm basically going bankrupt."

He said the reparation order was 10 times what it should have been. It was "grotesque" and a "nonsense".

"Even a man in the street would see that," he said.

The Crown said there had been no explanation on why it had not been paid, and that Banbrook had assets of $700,000.

His arguments in court were evidence of a lack of remorse, especially in making comments about the extent of his losses, when he was an offender.

The Crown sought that the reparations be paid by 5pm on Monday or a warrant for Banbrook's arrest be issued.

Justice Collins reserved his decision but hoped to make it available today or by Monday at the latest.

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