Long list of finance firms lined up for investigation and trial

Mark Hotchin. Photo / Paul Estcourt

The Securities Commission confirmed on November 14 last year that it was investigating Hanover Finance, United Finance and Hanover Capital.

Commission members were to meet before Christmas to decide whether criminal charges would be laid against directors of the companies. "Although no decision has yet been made, it is likely any charges will be laid in the New Year." Former director Mark Hotchin's assets were frozen.

The commission has since bowed out. The FMA will decide what action - if any - it will take against former directors of the Hanover companies.

SECURITIES COMMISSION

The commission completed 26 of 50 investigations into failed finance companies by December 2010.

35 directors from 14 of the finance companies faced criminal charges.

Two directors of the failed Five Star group - Marcus MacDonald and Nicholas Kirk - were the first finance company directors to be jailed.

OFF TO COURT

Nathans Finance (Trial under way)

Defendants: John Hotchin, Donald Young, Kenneth Moses and Mervyn Doolan. The commission alleged the directors made untrue statements in the registered prospectus and investment statement. Hotchin copped an effective plea bargain and gave evidence against the other directors.

Bridgecorp (July 4: trial)

Defendants: Rodney Petricevic, Robert Roest, Bruce Davidson, Gary Urwin and Peter Steigrad.

The commission alleged the directors made untrue statements in the investment statements and registered prospectuses of Bridgecorp and Bridgecorp Investments.

National Finance (High Court trial: August 22)

Defendants: Trevor Ludlow, Carol Braithwaite, Anthony Banbrook.

It is alleged the defendants made untrue statements in the registered prospectus for National Finance dated September 2005.

Capital + Merchant ( No trial date set.)

Defendants: Neal Nicholls, Owen Tallentire, Colin Ryan, Robert Sutherland and Wayne Douglas.

The commission alleges the offer documents and advertisements misled investors by misrepresenting the investment risks, especially in relation to related party lending, insurance cover and liquidity

Lombard Finance & Investments (No trial date set)

Defendants: Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant.

The commission alleges the offer documents and advertisements misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies and the company's overall financial position.