The Financial Markets Authority today also announced it was laying 69 criminal charges against three people associated with Belgrave Finance .
It alleges former Belgrave directors Stephen Smith and Shane Buckley, and associate Raymond Schofield breached section 58 of the Securities Act by making untrue statements in documents offering securities to the public.
In a release issued this morning, the FMA said the statements in question
related to:
• related party lending
• asset quality and lending practices
• source of funding
• connections with other financial institutions
• concentration of credit risk, and
• liquidity
If convicted, the three men face a maximum penalty of five years' imprisonment or fines of up to $300,000 plus $10,000 for every day the offence continued.
The FMA is also alleging the three men breached section 377 of the Companies Act 1993 by making a false or misleading statement to the trustee appointed to safeguard the interests of investors in Belgrave secured debenture stock.
The maximum penalty for a breach of section 377 is five years' imprisonment or a $200,000 fine.
Belgrave Finance was placed into receivership in May 2008, owing an estimated 1000 investors $22 million.
- NZ HERALD ONLINE