Wednesday, June 26, 2013

Dominion Finance directors plead guilty - Business News | TVNZ

Published: 10:47AM Wednesday June 26, 2013 Source: Fairfax

  • Dominion Finance's Richard "Rick" Bettle

    Dominion Finance's Richard "Rick" Bettle

The last of the Dominion Finance directors facing court action pleaded guilty to Financial Markets Authority (FMA) charges against them, at the High Court in Auckland this morning.

Vance Arkinstall and Richard Bettle pleaded guilty to five FMA charges each, and Paul Forsyth pleaded guilty to seven of the Securities Act charges brought by the FMA.

The men had originally pleaded not guilty and were set to go to trial next week.

The charges of misleading investors were laid by the FMA against all directors of Dominion Finance after it collapsed into receivership in 2008 owing more than 5900 public debenture investors $176.9 million.

North South Finance, a subsidiary company that operated under the same directors, was placed in receivership in 2010 owing $31 million to 3900 investors.

Earlier in the month former Dominion bosses Ann Butler and Robert Barry Whale were sentenced to home detention for their part in the company's collapse.

Butler's husband, Terry, was due to face the same charges but died of cancer this year.

Terry Butler also faced charges laid by the Serious Fraud Office (SFO) before his death, on which Dominion Finance chief executive Paul Cropp was found guilty of in April.

Justice Lang found Cropp guilty of knowingly breaching the trust deed of Dominion Finance and its subsidiary North South Finance, which said the company was not able to make loans to related parties.

Last month Cropp was sentenced to two years and seven months jail on the four Crimes Act charges of theft.

The maximum possible sentence was five years' jail or a fine of up to $300,000 on each charge, but finance company directors in similar circumstances have been sentenced to home detention.

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Source: http://tvnz.co.nz/business-news/dominion-finance-directors-plead-guilty-5476931

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