SFO's Kiwi Finance probe closed

Serious Fraud Office chief executive Adam Feeley Photo / Dean Purcell

The Serious Fraud Office (SFO) is not pursuing a criminal prosecution against Kiwi Finance Ltd, saying an administrative or civil proceeding could get a better outcome in a case of such small scale.

Kiwi was placed into receivership in April 2008 owing approximately 42 investors $1.7 million.

The SFO started investigating the company last November and worked with the Securities Commission.

The SFO said today that having considered the scale and nature of the alleged conduct it believed a civil or administrative remedy provided some opportunity for compensation of depositors.

"The Securities Commission has powers and functions that enable such an outcome, and this is a case which seems best suited to application of those powers," SFO director Adam Feeley said.

The SFO's decision was conditional on the commission being able to reach a satisfactory outcome.

"If, for any reason, the commission is unable to reach a suitable resolution within a reasonable time, we will reassess our position and may re-open the investigation."

- NZPA