The Serious Fraud Office will appeal against the not guilty verdicts of two former directors of failed lender Capital + Merchant Finance involving a Palmerston North development known as "The Hub Properties".
In July, Neal Nicholls and Wayne Douglas were found not guilty of charges under the Crimes Act of
theft by a person in a special relationship and one of making a false statement as a promoter.
The charges involved $14.4 million of related-party lending on the Palmerston North development.
"There are important points of law that have significance not only to this case but also the ongoing finance company prosecution," SFO chief executive Adam Feeley said.
The decision to appeal had not been taken lightly, he said.
