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A failed finance company's directors are facing charges - and up to five years in prison - for statements made in their prospectuses.

Clegg & Co finance director Brian Samuel Clegg faces eight charges and Pamela Nicolson-Clegg seven in Auckland District Court.

The Cleggs face two charges each over statements in the company's 2005 and 2006 prospectuses. They each face a further five charges of providing false information to a trustee over the extent of lending.

Brian Clegg also faces a charge relating to misleading the Securities Commission.

The company went into receivership in October 2007, with about $15 million of 500 investors' funds in debentures. Receivers said investors were still owed about $8 million, with remaining payouts unlikely to exceed 10c in the dollar.