National Finance accountant pleads guilty

Photo / Greg Bowker

The former accountant of failed firm National Finance 2000 pleaded guilty to serious fraud charges yesterday.

John Gray pleaded guilty to theft and false accounting charges at the Auckland District Court.

Serious Fraud Office chief executive Adam Feeley said the guilty pleas were "a very satisfying result and the outcome of a comprehensive investigation".

Feeley said that over the past year the Serious Fraud Office had "significantly shifted" its priorities to ensure failed finance cases were dealt with more swiftly due to heightened public concern.

"Results like this demonstrate there are serious consequences for breaching the law," he said.

"They help assure the investing public that they can have greater confidence in the integrity of our financial markets."

The Serious Fraud Office has 19 cases of suspected fraud on its books that involve about $630 million.

The office is also prosecuting a further 32 cases involving about $265 million.

The former director of National Finance Trevor (Allan) Ludlow has also been charged with alleged fraud by the Serious Fraud Office relating to the misuse of funds.

He has not entered a plea.

Ludlow, together with former directors Anthony Banbrook and Carol Braithwaite, face a separate set of charges for alleged breaches of the Securities Act. They have not yet entered a plea

That case has been committed to trial, which will begin in August.

National Finance was placed in receivership on May 10, 2006, owing 2000 investors $24 million. Its core business was car finance.