14 June 2013
Two former directors of Dominion Finance have today been sentenced to home detention after pleading guilty to Securities Act charges laid by the Financial Markets Authority.
Ann Butler was sentenced to nine months’ home detention, 80 hours’ community work, and ordered to pay $300,000 reparation. She admitted three charges of distributing an advertisement containing an untrue statement, and four charges of distributing a registered prospectus containing an untrue statement.
Barry Whale was sentenced to 12 months’ home detention, 250 hours’ community work and ordered to pay $75,000 reparation. He admitted seven charges relating to untrue statements in a prospectus.
“These untrue statements were likely to mislead investors into thinking an investment with the companies would be safer than it was,” said FMA Head of Enforcement Belinda Moffat.
“Directors have an obligation to act in the best interests of investors, and that includes providing timely and accurate information,” said Ms Moffat.
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.
The trial of directors Vance Arkinstall, Richard Bettle, and Paul Forsyth is scheduled to begin on 1 July.
Scott McMurray on 029 222 0776 or firstname.lastname@example.org