Court dismisses Bridgecorp appeal

Rod Petricevic. Photo / Sarah Ivey

The Court of Appeal has allowed a Crown appeal against former Bridgecorp director Peter Steigrad's discharge on four of 10 Securities Act charges.

Bridgecorp collapsed in 2007 owing thousands of investors almost $460 million.

Steigrad argued that Section 58 of the Securities Act did not create criminal liability where statements in the prospectus and investment statements were accurate when first distributed but might have become untrue because of changed circumstances.

He also argued that the counts overcharged a number of particulars and were an abuse of process.

However, three appeal judges ruled that the Crown had presented its indictment properly and that process had not been abused.

They also ruled that an advertisement or registered prospectus could be regarded as being distributed at any time when it was before the public. Liability for an untrue statement existed at any time the documents were before the public, and this therefore applied whether that statement was untrue at inception or became so subsequently.


This story has been corrected from an earlier NZPA report which incorrectly said the Court of Appeal had dismissed an appeal by Peter Steigard seeking to have charges dropped and others amended.

It also said Steigrad faced 18 charges, which was incorrect. His 10 charges are laid under the Securities Act and not the Crimes Act and the Companies Act. Some of his fellow directors are charged under the latter Acts.

The Court of Appeal has allowed a Crown appeal against former Bridgecorp director Peter Steigrad's discharge on four of 10 Securities Act charges.

- NZPA