Adam Feeley, head of the Serious Fraud Office has confirmed a second round of investigations into the NZF Group. Photo / Dean Purcell
Adam Feeley, head of the Serious Fraud Office has confirmed a second round of investigations into the NZF Group. Photo / Dean Purcell
NZF Group, the listed company whose NZF Money unit was put in receivership last year, said it has no knowledge of related party transactions at the heart of an investigation by the Serious Fraud Office.
"The Board has no knowledge of any related party transactions that could be subject ofsuch an investigation and the CEO has also questioned past executive directors who also confirm that they are not aware of any such related party transactions," chief executive Mark Thornton said in a statement to the NZX.
The firm will "cooperate fully" with the SFO probe, he said.
NZF shares have sunk 80 per cent this year and last traded at 0.6 cents.
The SFO and the Financial Markets Authority "have been assessing a range of allegations relating to the conduct of the group," the white collar fraud investigator's chief executive Adam Feeley said.
"The primary focus of the SFO assessment relates to alleged related party transactions between members of the group, its directors and officers" from July 2006 to the present, he said.
"We are satisfied that there are valid grounds for an investigation into the wider group and that there is a legitimate interest in publicly advising investors of this investigation," Feeley said.
NZF Money was placed into receivership last year owing debenture holders about $16.4 million. At the time it had debenture funding of about $28 million and loans of $29 million.
