Directors fined for not filing financial statements

Media release
MR No. 2014 – 029
11 September 2014

Directors Hayden George Jones and Thomas Alexander George Jones have been fined $35,000 each for breaches of the Financial Reporting Act 1993 (the FRA). The Financial Markets Authority (FMA) brought charges on four counts against both directors for failing to file financial statements. Sentencing was heard at the Christchurch District Court today.

The directors did not file financial statements for two companies, Heritage Park Taupo Limited and Prudential Real Estate Investment Limited (PREIL), for the years ending 31 March 2012 and 2013. PREIL is also the offeror and manager of two proportionate ownership schemes: Kaipara Harbour Proportionate Scheme and Investment 179 Proportionate Scheme, which also failed to file financial statements. Failure to file statements for these two schemes is the basis for the charges against PREIL. The directors pleaded guilty to breaches of sections 18 and 38 of the FRA.

Belinda Moffat, FMA Director of Enforcement and Investigations said, “This sentence sends a strong signal to companies raising funds from the public that the FMA will take strong action when companies persistently fail to meet their obligations. We expect issuers of securities to file their financial statements in an accurate and timely way.”

“The information provided in these statements helps investors assess the financial health of a company. Investors also need this information to make decisions about the balance of assets in their entire investment portfolio. The regulators require the information to oversee and monitor firms that issue securities to the public,” said Ms Moffat.

Hayden and Thomas Jones were also parties in the FMA case against Prudential Mortgage Limited. They are directors of the companies convicted and fined $2,000 in March 2014 for failing to file an annual report for the contributory mortgage broking firm.

There are two further cases now remaining before the courts following the FMA’s review of compliance with the Financial Reporting Act 1993.

For more information about FMA’s review into non-filing of financial statements visit fma.govt.nz

ENDS

Contact:
Andrew Park
09 967 1215
021 220 6770
[email protected]

Related

Case: Hayden and George Jones

Case: Prudential Mortgage Limited