FMA to sue Strategic Finance directors

MATT NIPPERT
Last updated 10:28 07/02/2013

Relevant offers

Industries

Aussie owner of Wellington offices gets OIO nod for $100m property fund AA warns Z Energy's Caltex takeover could lead to higher petrol prices Unqualified builder forced to pay $750,000 for leaky Auckland home he built Comvita's virtual reality only as good as the technology Panama Papers: Uruguayan link to $6m farm sale Five things to know about Mitsubishi scandal 'Cactus' skin aids electric car efficiency Panama Papers: Prime Minister says Panama firm link to NZ land sale 'irrelevant' First Table hungry for slice of the early-bird dining market Aussie moves against foreign house buyers lends impetus to private members' bill

Directors of failed Strategic Finance are being pursued by authorities over alleged breaches of the Securities Act.

Following a two-and-a-half-year investigation the Financial Markets Authority said it was intending to file civil action against Kerry Finnigan, Graham Jackson, Marcel Lindale, Timothy Rich, Denis Thom and David Wolfenden.

A seventh Strategic director, former New Zealand Rugby Union boss Jock Hobbs, died last year.

The FMA said the alleged breaches of the Securities Act related to claims made in the company's prospectus and advertising between March and August 2008.

Strategic collapsed in March 2010 under the weight of bad loans made to property developers, owing 11,000 investors $383 million.

The FMA's head of enforcement Belinda Moffat said the six former Strategic directors had been notified of the intent to take action.

"FMA's role as a publicly-funded litigant, acting in the public interest, necessitates this announcement to keep the market and investors informed," she said.

Strategic's receiver PricewaterhouseCoopers announced in December it was also filing civil action against the directors.

Receivers have said in the reports investors are likely to receive returns as little as 12 cents in the dollar.

The FMA said the directors and PWC were "now engaged in settlement discussions with the directors on a without-prejudice and confidential basis".

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content