1. News
  2. Media releases
  3. FMA welcomes National Finance guilty verdict

FMA welcomes National Finance guilty verdict

Media Release
27 July 2012

The Financial Markets Authority has today welcomed the guilty verdict of National Finance director Carol Braithwaite.

Ms Braithwaite was this morning found guilty on one charge of making untrue statements in a prospectus for National Finance 2000 Ltd.

FMA Head of Enforcement Belinda Moffat said, "The decision should act as a reminder for what is reasonably expected of directors in their governance role and disclosure document obligations."

"A high level of professionalism amongst directors is essential for restoring market confidence," Ms Moffat said. "Directors need to be aware of their obligations and it is no excuse to say they did not understand them or relied upon others."

Ends


Contact:

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

Background:
FMA alleged that Carol Braithwaite is guilty in respect of untrue statements made in the registered prospectus for National Finance 2000 Limited (in receivership and liquidation), dated 22 September 2005. These statements included: National Finance's provisioning for bad debts; related party lending (including interest free unsecured loans to Ms Braithwaite and her de facto partner, Trevor Allan Ludlow, to purchase four luxury apartment s in Fiji); the types of assets or security held by National Finance.

Carol Braithwaite is the third and final director of National Finance to be charged. Earlier this year, in a case taken by FMA, another director Trevor Allan Ludlow was sentenced to nine months imprisonment after pleading guilty to making untrue statements in a National Finance prospectus. He was already serving five years and seven months imprisonment for theft by a person in a special relationship and false accounting, in a separate case taken by the Serious Fraud Office.

In June this year, director Anthony Banbrook pleaded guilty to making untrue statements in a National Finance prospectus. He will be sentenced next month.

National Finance collapsed in 2006 owing over $20m to more than 2,000 investors.