Viaduct Capital & Mutual Finance

Defendants: Paul Neville Bublitz (Viaduct and Mutual); Bruce Alexander McKay (Viaduct and Mutual); Richard Timothy Blackwood (Viaduct and Mutual); Lance David Morrison (Mutual only), Peter Louis Chevin (Mutual only)

The defendants have been charged with theft in a special relationship under section 220 of the Crimes Act and making false statements in a prospectus under section 242 of the Crimes Act. With respect to Viaduct only, charges have also been filed under section 377 of the Companies Act in respect of false statements made to Viaduct's trustee.

16 August 2019

The FMA notes the judgment from the Court of Appeal, setting aside of some of the convictions, and the associated reduction of a sentence, in relation to Mr Paul Bublitz and Mr Bruce McKay.

The FMA also notes that Mr Bublitz and Mr McKay remain convicted, respectively, of four and three charges of theft by a person in a special relationship. The courts have concluded that Mr Bublitz knowingly misapplied funds raised from the public, and Mr McKay assisted him in that conduct as a party.  Both have therefore been convicted of criminal activity.

In pursuing this case, the joint view of the FMA and the Crown Solicitor was that the evidence available warranted the pursuit of criminal sanctions.  We considered the offending likely to be established, amounted to a calculated and cynical abuse of public funds. It’s our job to bring difficult cases such as this before the court and it is the court that determines the outcome.

Read the Court of Appeal judgment.

27 March 2019

One man has been jailed and two men sentenced to home detention at the Auckland High Court for their part in using finance companies to try to save commercial businesses during the global financial crisis.

Paul Bublitz was found guilty of four charges of theft by a person in a special relationship and two charges of false statement by a promoter. He was sentenced to 3 years two months imprisonment for each of the charges, to be served concurrently.

Bruce McKay was found guilty of three charges of theft by a person in a special relationship. He was sentenced to 12 months home detention for each charge, to be served concurrently.

Richard Blackwood was found guilty of four charges of theft by a person in a special relationship. He was sentenced to 9 months home detention for each charge, to be served concurrently.

The verdicts were delivered by Justice Toogood on the 5^th February 2019.

A fourth man, Peter Chevin, pleaded guilty to charges under the Crimes Act in 2016 and was sentenced to 9 months home detention in February 2017.

5 and 21 February 2019

The verdicts and reasons were delivered. Mr Bublitz convicted on four charges of theft by a person in a special relationship and two charges of making a false statement by a promoter. Mr McKay was convicted of three charges of theft by a person in a special relationship, and Mr Blackwood was convicted on four charges of theft by a person in a special relationship.

Download the verdicts and reasons from the High Court

10 May 2017

Woolford J declared a mistrial. The next Court date is a callover on 5 July 2017.

8 August 2016

The trial against Mr Bublitz, Mr McKay, Mr Blackwood and Mr Morrison commenced. Mr Chevin pleaded guilty on the morning of trial to charges under s 220 of the Crimes Act. He has since been sentenced to nine months’ home detention.

12 November 2015

High Court granted an application by Mr Bublitz to adjourn the trial to 8 August 2016.

29 September 2014

Not guilty pleas were entered by each of the defendants.

The matter was transferred to the High Court and a 12-week trial was scheduled to commence on 9 February 2016.

7 May 2014

The defendants made their first appearance in court.

11 March 2014

FMA has filed charges under the Crimes Act and under the Companies Act against directors and another of Viaduct Capital Limited (in receivership) and Ex-MFL Limited (in Receivership) (formerly Mutual Finance Limited) in the District Court of Auckland.