Capital + Merchant directors remanded

Photo / Herald on Sunday

The Serious Fraud Office case against one former and one current director of failed finance company Capital + Merchant has been adjourned to the new year.

Neal Medhurst Nicholls, 55, and Wayne Leslie Douglas, 57, face six charges relating to about $14.5 million of alleged related party lending between 2002 and 2004.

SFO chief executive Adam Feeley said the charges related to one discrete set of transactions.

"The SFO is continuing to investigate a number of other transactions that are of serious concern to us," he said.

The pair were remanded on bail in the Auckland District Court this morning for a post committal conference on February 25, when a trial date could be set.

Capital + Merchant collapsed in 2007 owing $167.1m to about 7000 investors.

The Serious Fraud Office investigation into Capital + Merchant began in March and was prompted by a complaint from the company's receivers, Grant Thornton.

- NZ HERALD ONLINE