Guilty plea in Dominion Finance case

Media Release
10 May 2013

A former director of Dominion Finance Group and North South Finance, Ann Butler, has today pleaded guilty to misleading investors in a prosecution taken by the Financial Markets Authority.

Mrs Butler pleaded guilty to seven Securities Act charges including making untrue statements in a Dominion Finance Group prospectus and investment statement and making untrue statements in a North South Finance prospectus and investment statement. She will be sentenced on 14 June.

"Ann Butler is the 27th finance company director to be convicted in proceedings taken by FMA and the first of the Dominion Finance directors to enter a guilty plea," said FMA Head of Enforcement, Belinda Moffat.

"She has accepted that she failed to perform her role as a director and did not take the steps required to ensure she was aware of the true position of the companies."

Dominion Finance and North South Finance were subsidiaries of the NZX-listed Dominion Finance Holdings Limited. Dominion Finance went into receivership in 2008 owing $176.9 million to 5,900 investors. North South Finance was placed in receivership in 2010, owing $31 million to 3900 investors.

The trial of directors Vance Arkinstall, Richard Bettle, Robert Whale and Paul Forsyth begins on 17 June.

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