July 2023
Rowan Kearns, the founder and sole director of the Forestlands group of companies, was sentenced yesterday to four months’ community detention and 100 hours’ community work with a 9pm – 7am curfew. The sentence follows a prosecution brought by the FMA filed in the Nelson District Court in September 2020.
May 2023: New sentencing date for Mr Kearns confirmed – 20 July 2023 at 2.15pm (Nelson District Court)
April 2023 - The sentencing of Mr Kearns has been adjourned and a new date has not yet been set.
February 2023
Rowan Kearns, the founder and sole director of the Forestlands group of companies, pled guilty to the following charges in criminal proceedings for disclosure and financial record keeping breaches:
- One representative charge of making a false statement, under the Financial Reporting Act 1993, s 41, carrying a maximum penalty of five years’ imprisonment or $200,000 fine;
- two representative charges of failing to deliver financial statements under the Financial Reporting Act 1993, ss 18 and 38(b), carrying a maximum penalty of $100,000 fine; and,
- one representative charge of failing to lodge financial statements under the Financial Markets Conduct Act 2013, s 461H, carrying a maximum penalty of $50,000 fine.
The FMA filed charges in the Nelson District Court in September 2020. Mr Kearns entered not guilty pleas to all charges, and elected a trial by jury. The charges were then consolidated into representative charges, capturing the fundamental aspects of Mr Kearns’ offending.
A jury trial had been set down for March 2023, however, Mr Kearns guilty pleas now mean the case can proceed to sentencing, without need for a trial. Mr Kearns will be sentenced at the Nelson District Court on 2 May 2023 at 2.15pm.
December 2022
A trial date has been set to start on 16 March 2023
September 2022
A callover hearing has been adjourned to 10 November 2022. A trial date has not yet been set.
August 2022
A callover hearing has been adjourned to 15 September 2022. A trial date has not yet been set.
May 2022
A callover hearing has been adjourned to 18 August 2022. A trial date has not yet been set.
April 2022
A callover hearing has been adjourned to 26 May 2022. A trial date has not yet been set.
16 November 2021
A callover hearing has been set for 4 February 2022. A trial date has not yet been set.
9 September 2020
The Financial Markets Authority (FMA) has filed criminal charges against Rowan Charles Kearns, the founder and sole director of the Forestlands group, for alleged disclosure and financial record keeping breaches.
The FMA claims relate to:
- omissions of security arrangements of an externally borrowed $1 million loan from the financial statements of certain Forestlands companies, which the FMA say were knowingly omitted and misrepresented their financial position (three charges under the Financial Reporting Act);
- failures to file the Forestlands companies’ financial statements for the financial years ending in March 2015, 2016 and 2017 (18 charges under the Financial Markets Conduct Act 2013 and Crimes Act 1961, and 36 charges under the Financial Reporting Act 1993);
- failures to keep proper accounting records (18 charges under the Companies Act 1993); and
- failures to keep and supervise share registers (36 charges under the Companies Act 1993).
The multiple charges for each issue reflects that the Forestlands group consists of 18 different numbered companies (i.e. Forestlands No. 2-12 and 14-20).
12 October 2018
The FMA has decided not to seek costs arising from its application to put the Forestlands companies 2-12 and 14-20 into liquidation.
Calibre Partners published its first liquidators’ reports in relation to the Forestlands companies 2-12 and 14-20.
6 September 2018
The High Court in Nelson has placed Forestlands companies 2-12 and 14-20 into liquidation.
The Financial Markets Authority (FMA) sought the appointment of liquidators by the court to bring independence and certainty to the resolution of the companies’ affairs.
31 August 2018
The FMA’s application to liquidate the Forestlands companies has moved forward and will now be heard on the 6th September 2018 at 11:00am at the Nelson High Court instead of 26-27 November 2018.
13 August 2018
The FMA’s application to place Forestlands 2-20 into liquidation is currently scheduled to be heard on 26-27 November 2018 at the Nelson High Court.
Following a court order in April 2018, a payment of income tax liabilities of $1,641,789 was made to IRD. The remaining funds are still in an interest-bearing trust account. The money cannot be accessed without the permission of the FMA or court order.
23 April 2018
FMA has applied at the Nelson Registry of the High Court to place the Forestlands companies numbered 2-20 into liquidation.
Shareholders and Creditors are entitled to a copy of the affidavit setting out the FMA’s case in seeking the liquidation of these companies.
The FMA and Serious Fraud Office maintain separate ongoing investigations into Forestlands.
20 April 2018
High Court heard an application by 10 of the Forestlands companies in relation to money owed to the IRD. The total owed and due to Inland Revenue was $1,529,203 and interest of $112,586.
The High Court granted orders for the Forestlands Companies to pay the income tax liabilities from the $18 million held in the trust account.
20 October 2017
Companies Office has now confirmed that the director has filed annual returns for each of the ‘numbered’ Forestlands Companies. This operates as a complete stop on the Registrar’s intention to remove those companies from the companies register.
We have also reminded Mr Kearns, through his lawyers, of the companies’ obligation to maintain share registers and have them available to be inspected.
7 August 2017
We have received queries about the sale price of the forests. The Overseas Investment Office has recently published the sale price received by Forestlands. This information is now available on the OIO website which references a sale price of $23,500,000.
30 June 2017
We understand that the Forestlands companies have now instructed an independent professional services firm to assist with developing an appropriate distribution method. As soon as an appropriate distribution method has been established, the FMA will decide whether to consent to the release of funds currently held on trust.
27 June 2017
The FMA continues to seek to engage with the sole director of the Forestlands group and his legal representatives to ascertain what steps have been taken to put in place an appropriate process for determining and managing the distribution of the $18 million that is held on trust, accruing interest.
1 May 2017
FMA referred some matters to the Serious Fraud Office. We will continue to complete our inquiries in relation to financial markets issues.
We want to ensure that Forestlands has established a process for distribution of the funds in trust account that is proper and fair for all investors.
22 March 2017
$18 million (which Forestlands say is to be paid to all its investors) was placed in a trust, earning interest. This decision to place these funds in trust was taken to protect and preserve the identified funds and investors’ interests while the FMA’s inquiries continue.
Following a query from an investor about a statement issued on Forestlands website dated 15/03/2017, the FMA wants to make clear that this was published without our knowledge. The FMA is currently investigating the events in question.
