The Serious Fraud Office (SFO) will withdraw charges laid against South Canterbury Finance's former group accountant, Terrance Hutton.
Mr Hutton faced two charges alleging false accounting in relation to the recording of a $25 million loan advance and a $10 million loan advance.
SFO director Julie Read said although the charges were originally laid in December 2011, the SFO continually reviewed all charges laid to ensure they remained appropriate, fair and in the public interest.
''I am satisfied, having given regard to the requirements of the solicitor-general's prosecution guidelines, that the allegations against Mr Hutton should be withdrawn,'' Ms Read said.
The trial for the remaining defendants, Lachie McLeod, Edward Sullivan and Robert White, is set down to start in the High Court at Timaru on March 12.
The remaining defendants are alleged to have committed fraud offences under the Crimes Act which carry maximum penalties of between seven and 10 years' imprisonment.
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