Lombard investors misled, court told

Former Justice Minister Bill Jeffries is among three directors of Lombard Financial Services who stand accused of misleading investors in two contributory mortgage proposals.

Jeffries, a minister in the fourth Labour Government, Alan Lawson Beddie, Michael Reeves and Lombard Financial Services have collectively had 27 charges laid against them in the Wellington District Court, relating to a contributory mortgage scheme involving Village Care New Plymouth.

A further 17 charges have been laid in respect of the so called Ballantyne mortgage. Ballantyne was a proposed residential and golf course development at Katikati in the Western Bay of Plenty that did not proceed.

The court is hearing the charges relating to Village Care this week, followed by the Ballantyne case in a fortnight.

The Village Care case involves the method used to value the land, building, chattels and going concern of the rest home and their disclosure in offer documents.

The Village Care contributory mortgage was a loan by Lombard's nominee company to Village Care New Plymouth to purchase land and buildings to operate a rest home in the city.

Appearing for the Assistant Registrar of Companies, the informant, Brian Dickey, claimed the advertisement did not meet the disclosure requirement under securities law.

- NZPA