Taxpayer bill for SCF case could be near $1.5m

Edward Sullivan.

The taxpayer's bill for the South Canterbury Finance prosecution could be nearing $1.5 million and might balloon if acquitted defendants push for costs.

The five-month trial of a trio associated with the failed firm saw only one convicted, with former director Edward Sullivan being found guilty on five of the nine charges he faced.

The final costs of the Serious Fraud Office prosecution are not yet known, particularly given Sullivan will not be sentenced until December.

Watch: South Canterbury Finance: Two cleared, one guilty

But Crown Law said yesterday it had paid a total of $1.163 million for legal fees and expenses.

"Crown Law is responsible for the fees of the members of the Serious Fraud Office Prosecution Panel who conducted the prosecution. I can advise that as at 10 October 2014 Crown Law has paid a total of $1,163,113.87 for the conduct of the case by the panellists, including GST and disbursements (which include travel, accommodation and other expenses)," Crown Law's Charlotte Brook said yesterday.

Crown Law had no information about what was spent by the SFO.

Radio New Zealand reported in September that the SFO had spent $200,000 on external lawyers and nearly $61,000 on their travel and accommodation during the trial.

The combined running total of the South Canterbury Finance case could be $1.42 million - in line with what the Financial Markets Authority spent investigating and prosecuting five Bridgecorp directors for misleading investors.

In that case, however, all defendants either pleaded guilty or were convicted and there was no application from any of them seeking court costs from the Crown.

On the day of the South Canterbury Finance verdicts at least one of the acquitted defendants was considering trying to get costs back.

Jonathan Eaton, Queen's Counsel for South Canterbury chief executive Lachie McLeod, said earlier this month he'd be "having a very close look at our entitlement to seeking some sort of contribution to the costs that have been incurred".

Eaton did not respond to messages yesterday about any potential application for costs.