Ex-director fails to get charges thrown out

Anthony Bowden. Photo / Greg Bowker

A former director of collapsed Five Star Consumer Finance has failed to have two charges thrown out of the High Court.

Anthony Walpole Bowden faces nine criminal charges brought by the Serious Fraud Office, including two of theft by a person in a special relationship.

His associate Neill Williams, who the Crown argues was a de facto Five Star director, also faces criminal charges.

The pair have pleaded not guilty and their trial, expected to last up to four weeks, is due to start in the High Court at Auckland in June next year.

Five Star marketed itself as a low or modest-risk finance entity which made small consumer loans for household purchases such as fridges.

Instead, it was allegedly investing large sums in complex commercial and related-party loans totalling more than $50 million.

In 2007 Five Star Consumer Finance collapsed with losses of $42 million. Other companies in the group, Five Star Finance and Five Star Debenture Nominee, owe a further $43 million.

The Crown argues company directors knowingly advanced millions of dollars from Five Star Consumer Finance to other entities they were also in charge of.

In November, Bowden's lawyer Todd Simmonds said two of the nine counts against the former director should be discharged.

He queried if there was sufficient evidence to show Bowden was in control of funds the two charges relate to.

The funds in question were allegedly involved in 14 related-party loans.

Simmonds conceded Bowden had personally approved one of the loans and had been present at board meetings when other advances were discussed or approved.

However, he said Bowden's involvement was so limited it did not satisfy the relevant sections of the Crimes Act.

This was rejected by Crown lawyer John Billington, QC, who argued the evidence reached the required threshold.

In a judgment released this month Justice Patricia Courtney dismissed Bowden's application but suppressed the reasons for her decision.

Bowden's fellow Five Star directors - Marcus MacDonald and Nicholas Kirk - pleaded guilty last year in the Auckland District Court to charges brought by the SFO of theft by a person in a special relationship. The pair also pleaded guilty to Securities Act charges. Kirk and MacDonald were sentenced to more than two years in jail late last year but have since been released on parole.

Bowden pleaded guilty to Securities Act charges and was sentenced to nine months' home detention.

Williams originally pleaded guilty to these charges but is now trying to reverse this.

He was due to make his attempt last Thursday in the Auckland District Court, but the hearing could not go ahead because of procedural difficulties. He will now have to wait until March 5 before his bid can be heard.