BREAKING NEWS
Two killed, at least 15 injured in shooting at Florida nightclub hosting teen party ... Read more
Close

FMA to sue Strategic Finance directors

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

Relevant offers

Industries

Auckland Council will no longer buy land for parks, will rely on developers to provide them Woolworths Australia tipped to sell Ezibuy as part of restructure Australian parent Woolworths closes six Countdowns House prices could fall 11 per cent by late 2019, as building catches up: Infometrics Woolworths Australia to close dozens of stores, cut 500 jobs McKinsey Global Institute: a different look at income inequality HD version of Freeview's satellite television service on the horizon Wellington student accommodation blocks for sale Ivanka Trump on her 'amazing' father and building her own brand Fraud crackdown gets software upgrade as NZ software company Auror expands in Australia

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