Another Dominion Finance director pleads guilty to FMA charges

Media Release
24 May 2013

A former director of Dominion Finance Group and North South Finance, Robert Barry Whale, has pleaded guilty to seven Securities Act charges of misleading investors in a prosecution taken by the Financial Markets Authority.

The charges relate to untrue statements in a prospectus that were issued by Dominion Finance Group and North South Finance in September 2007.

Dominion Finance went into receivership in 2008, owing approximately $177 million to 5,900 investors. North South Finance was placed in receivership in 2010, owing $31 million to 3900 investors.

“Mr Whale failed to personally review and ensure the accuracy of the information contained in the offer documents,” said FMA Head of Enforcement, Belinda Moffat.

“The effect of this negligence was that investors did not receive a true picture of the financial health of the companies they invested in,” said Ms Moffat.

Mr Whale and another director, Ann Butler, will be sentenced on 14 June. Mrs Butler pleaded guilty to misleading investors on 10 May.

The trial of directors Vance Arkinstall, Richard Bettle, and Paul Forsyth is scheduled to begin commence on 17 June 2013. Mr Forsyth has applied for the trial to be adjourned.

Ends

Contact:
Tony Reid on 021 739 052 or [email protected]

Related

Case: Dominion Finance Group and North South Finance