FMA chases estate of dead Dominion Finance man

Terry Butler. Photo / Martin Sykes

The market watchdog is targeting the estate of deceased director Terry Butler in its lawsuit against the former board of Dominion Finance.

Butler died in March last year and his fellow directors - Vance Arkinstall, Richard Bettle, Ann Butler, Paul Forsyth and Robert Barry Whale - later all admitted to misleading Dominion investors or those in its sister firm North South Finance. They were all sentenced to home detention, community work and some were ordered to pay reparation.

Ann Butler served her home detention in a Remuera mansion so big probation staff were unsure if the whole house could be electronically monitered.

Before his death, Terry Butler lived with his wife at the mansion, which was sold this year for $4.5 million, according to QV records.

The Financial Markets Authority also brought civil action against Dominion's board. The FMA, under the Securities Act, has applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the directors.

In the High Court at Auckland yesterday, the FMA applied to join the executors of Terry Butler's estate into the civil proceedings. There was no appearance from the executor, Ann Butler, and the application was granted by Associate Judge Roger Bell after a short hearing.

While the estate was joined, the lawyer appearing for the FMA, Rina See, said the proceedings were still stayed.