Another two Capital + Merchant directors plead guilty to FMA charges

Media Release
15 February 2013

Wayne Leslie Douglas and Neal Medhurst Nicholls have today pleaded guilty to Securities Act charges laid by the Financial Markets Authority.

Mr Douglas pleaded guilty to one charge of making an untrue statement in a registered prospectus and one charge of distributing an advertisement which included an untrue statement.

Mr Nicholls pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement.

A sentencing date has not yet been set.

Both men are currently serving a sentence of seven and a half years' imprisonment after they were found guilty of fraud charges in a prosecution taken by the SFO.

FMA Head of Enforcement, Belinda Moffat, said today's guilty pleas bring to a close FMA's criminal proceedings against five directors of Capital + Merchant Finance.

"All five directors have now pleaded guilty to the most serious charges we brought against them," said Ms Moffat. "These cases are important in the work we do to hold directors to account and to restore public confidence in our markets."

Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.


Ends

Contact:

Tony Reid on 021 739 052 or tony.reid@fma.govt.nz