Property developer Peter Chevin gets home detention

One of the men associated with collapsed finance companies Viaduct Capital and Mutual Finance has been sentenced to nine months home detention. Photo / file
One of the men associated with collapsed finance companies Viaduct Capital and Mutual Finance has been sentenced to nine months home detention. Photo / file

One of the men associated with collapsed finance companies Viaduct Capital and Mutual Finance has been sentenced to nine months home detention.

At the time of receivership, Viaduct owed $7.8 million to investors and Mutual owed $9.3m.

Property developer Peter Chevin was the only of the charged men to plead guilty.

The trial of Paul Bublitz, Bruce McKay, Richard Blackwood and Lance Morrison is ongoing.

Chevin, 52, earlier pleaded guilty to nine charges of theft by a person in a special relationship brough by the Financial Markets Authority. A 10th charge was dropped.

Sentencing judge Justice Mark Woolford concluded that Chevin was "substantially involved" in the operations and had been since the outset of planning around Mutual.

Mutual, which had the benefit of a Crown guarantee, was purchased and used to support Viaduct through a series of illegal related party transactions, the decision said.

"The basis of the charges against you is that you had control, along with others, of investors' funds in Mutual," Justice Woolford told Chevin. "The funds were held on terms that required them to be dealt with in accordance with a Debenture Trust Deed."

The total value of the transactions was $2,280,000.

The Crown said that Chevin was "wilfully blind" and was aware there was a substantial risk the transactions would breach related party restrictions in the Trust Deed and Crown Guarantee, but facilitated them regardless.

According to the decision, Chevin has a number of previous convictions, including failing to do required acts as a bankrupt, managing a company as a prohibited person, failing to assist a liquidator, failing to supply records to a liquidator and failing to keep books and records.

Chevin told the court that he became involved with Mutual at a time when he was struggling to secure sustainable employment due to the global financial crisis.

He said he was "exceedingly remorseful" and that his actions were "stupid" and "wrong".

Justice Woolford took account Chevin's cooperation, remorse and guilty plea and sentenced him to nine months home detention.

The companies were part of the Crown Retail Deposit Guarantee Scheme, meaning losses were taken on by the taxpayer.

According the decision, the Crown stood to lose between $4.3m and
$5.6m as a result of the scheme.

- NZ Herald

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