KEY POINTS:
Charges have been laid against the directors of Five Star Finance in the second criminal prosecution relating to failed finance companies.
The Companies Office yesterday said it had laid criminal charges in the Auckland District Court against Marcus MacDonald, Anthony Bowden and Nicholas Kirk, directors of Five Star
Finance Ltd and Five Star Debenture Nominee Ltd.
"The charges relate to securities being offered and allotted to members of the public without there being a registered prospectus, investment statement or trustee appointed," said registrar of companies Neville Harris.
The Companies Office's national enforcement unit is carrying out the prosecution, with the defendants due to appear in the Auckland District Court on August 4.
If convicted, the trio could face a maximum fine of up to $300,000.
The Five Star group of companies is also the subject of separate investigations by the Securities Commission and the Serious Fraud Office.
Five Star Finance went into receivership last September 5 with a loan book of $65.5 million.
Five Star Debenture Nominee went into liquidation on November 5, owing 2300 secured debenture investors $54.4 million.
In December last year, it was revealed that receivers found many of the company's large commercial loans were either improperly secured or completely unsecured.
Appearing in the Auckland District Court a week earlier on July 29 are Bridgecorp founder Rod Petricevic and fellow director Robert Roest.
They each face two charges under the Securities Act relating to debenture stock and capital notes.
The pair also face one charge each under the Companies Act of making a false statement to the trustee for the debenture holders when they signed a directors' certificate on April 30, 2007.
Bridgecorp Ltd faces one charge under the Securities Act of allotting debenture stock to members of the public knowing that its prospectus - which claimed the company had never missed an interest payment or principal repayment - was false.
DAY IN COURT
* The defendants: Marcus MacDonald, Anthony Bowden and Nicholas Kirk, directors of Five Star Finance Ltd and Five Star Debenture Nominee Ltd.
* The charges:The directors of Five Star Finance Ltd and the directors of Five Star Debenture Nominee Ltd are charged under the Securities Act with offering and allotting debenture stock to members of the public without having a registered prospectus or investment statement.
* Penalties: If convicted, they are liable to a fine of up to $300,000.
