The Porridge List - finance industry sentencing

This page is a list of the sentences handed down from finance industry failures since 2006. We have also added in other cases covering fraud, corruption and dishonesty which have been conducted by the Serious Fraud Office (SFO) and/or other agencies.

It extends the data on our Deep Freeze List.

If you have information that can update or correct any entry, please email us at news@interest.co.nz

The interim totals of all sentences listed below are:

Total jail time ... 153 years & 6 months
Total home/community detention ... 26 years & 7 months
Total community service time ... 410.7 days (1.125 years)
Total $ reparation and fines ... $3.54 million

 

  Key People Institution
Date
failed
Current
status
Sentence handed down
           
  Mervyn Doolan Nathans Finance Aug-07 Sept-11 2 years & 4 months jail + $150K reparation
  Roger Moses Nathans Finance Aug-07 Sept-11 2 years & 2 months jail + $425K reparation
  Donald Young Nathans Finance Aug-07 Sept-11 9 months home detention plus 300 hours of community work and $310K reparation
  John Hotchin Nathans Finance Aug-07 Sept-11 11 months home detention, 200 hours community service and $200K reparation
           
  Sir Douglas Graham Lombard Finance Apr-08 July-11 6 months home detention and fines of $100,000 plus 200 hours community service
  Lawrie Bryant Lombard Finance Apr-08 July-11 6 months home detention and fines of $100,000
  Bill Jeffries Lombard Finance Apr-08 July-11 8 months home detention and 250 hours community service 
  Michael Reeves Lombard Finance Apr-08 July-11 9 months home detention and 250 hours community service
           
  Colin Simpson Rockforte Finance May-10 Sept-13 11 months home detention, 200 hours community service
  Nigel O'Leary Rockforte Finance May-10 Oct-13 4 years jail
  John Gardner Rockforte Finance May-10 Oct-13 11 months home detention and 200 hours community service
           
  Wayne Douglas Capital+Merchant Nov-07 June-13 Original sentence 7½ years jail plus additional 8-months on further charges
  Neal Nicholls Capital+Merchant Nov-07 June-13 Original sentence 7½ years jail plus additional 12-months on further charges
  Owen Tallentire Capital+Merchant Nov-07 Mar-13 12 months jail
  Colin Ryan Capital+Merchant Nov-07 Mar-13 7 months home detention, 300 hours community service & $100K reparation
  Robert Sutherland Capital+Merchant Nov-07 Mar-13 6 months home detention, 300 hours community service & $60K reparation
           
  Marcus Macdonald Five Star Cons Fin May-06 Dec-10 2 years & 3 months in jail
  Nicholas Kirk Five Star Cons Fin May-06 Dec-10 2 years & 8 months in jail
  Anthony Bowden Five Star Cons Fin May-06 Dec-10 9 months home detention & 300 hours community service
  Neill Williams Five Star Cons Fin May-06 Apr-13 3 years & 7 months in jail - increased to 5 years in jail following separate charges
           
  Rod Petricevic Bridgecorp Jul-07 Apr-12 6½ years jail
 
Robert Roest Bridgecorp
Jul-07
Sept-13 6½ years jail - currently appealing sentence
  Bruce Davidson Bridgecorp Jul-07 Apr-12 9 months home detention & $500K reparation
  Gary Unwin Bridgecorp Jul-07 Apr-12 2 years jail
  Peter Steigrad Bridgecorp Jul-07 Aug-12 9 months home detention, 200 hours community service & $350K reparation
           
  David Ross Ross Asset Management 2013 Nov-13 10 years & 10 months jail
           
  Jacqui Bradley B'On Financial Services Dec-09 Oct-12 7 years & 5 months jail
           
  Stephen Versalko ASB (investment adviser)   Mar-10 6 years jail
           
  Neville Cant Inv Management Ltd & Combined Financial Services   Jun-10 14 months jail & $100K in reparations plus a total of $94K in fines for two Securities Act breaches
           
  Evan Cherry Investment Solutions Ltd   Dec-12 6 years & 2 months jail
           
  Warren Pickett Waipawa Finance   May-09 5 years jail
           
  Vance Arkinstall Dominion Finance &
North South Finance
Jun-08 Aug-13 10 months home detention and 200 hours of community service.
  Richard Bettle Dominion Finance &
North South Finance
Jun-08 Aug-13 10 months home detention and 200 hours of community service & $90K reparations
  Terence Butler Dominion Finance &
North South Finance
Jun-08 Mar-13 Mr Butler passed away on 28 March 2013 and the prosecution against him has been permanently stayed
  Ann Butler Dominion Finance &
North South Finance
Jun-08 Jun-13 9 months home detention, 80 hours community service & $300K reparations
  Paul Forsyth Dominion Finance &
North South Finance
Jun-08 Aug-13 11 months home detention, 200 hours community service & $50K reparations
  Robert Whale Dominion Finance &
North South Finance
Jun-08 Jun-13 12 months home detention, 250 hours community service & $75K reparation
           
  Stephen Smith Belgrave Finance May-08 Jun-13 4 years jail
  Shane Buckley Belgrave Finance May-08 Aug-12 3 years jail
  Raymond Schofield Belgrave Finance May-08 Dec-12 Granted conditional stay of criminal proceeding due to terminal illness
  Hugh Hamilton Belgrave Finance May-08 Sep-13 Trial set down for 10 February 2014
           
  Trevor (Allan) Ludlow National Finance 2000 Aug-07 Jan-12 6 years & 4 months jail
  Carol Braithwaite National Finance 2000 Aug-07 Sept-12 10 months home detention and 300 hours community service
  Anthony Banbrook National Finance 2000 Aug-07 Mar-13 8½ months home detention and $75K reparations - to appeal conviction and set to be heard 21 Oct 2013
           
  Edward Sullivan Sth Canterbury Finance Aug-10 Dec-14 pre-trial hearing 5 August 2013, trial scheduled for 12 March 2014 - guilty on 5 of 9 charges remanded on bail due to be sentenced on December 12, 2014 - sentenced to 12 months home detention and 400 hours community service
  Robert White Sth Canterbury Finance Aug-10 Dec-14 pre-trial hearing 5 August 2013, trial scheduled for 12 March 2014 - acquitted of all charges
  Lachlie McLeod Sth Canterbury Finance Aug-10 Oct-14 pre-trial hearing 5 August 2013, trial scheduled for 12 March 2014 - acquitted of all charges
  Terrence Hutton Sth Canterbury Finance Aug-10 Oct-14 pre-trial hearing 5 August 2013, trial scheduled for 12 March 2014 - SFO dropped charges in Oct-13
           
  Brian Clegg Clegg & Co
Oct-07
Dec-09 12 months home detention. He was also convicted and discharged under Sec 59A of the Securities Act 1978.
           
  Sharon Day QED Mar-08 Jun-09 Fined $80K and $120K reparations
           
  Mark Bryers Blue Chip   May-10

Section 194 (two charges) under the Companies Act 1993 for failing to keep adequate accounting records. Fined $930.00 plus $130.00 court costs on each charge.

Section 189 under the Companies Act 1993 for failing to ensure that the Company kept records. Fined $930.00 plus $130.00 court costs.

Section 36(1) (two charges) under the Financial Reporting Act 1993 for failing to complete financial statements. Fined $16,875.00 plus $130.00 court costs on each charge.

Section 37(a) (27 charges) under the Financial Reporting Act 1993 for failing to complete and sign financial statements. Convicted and discharged.

Section 261(6A) under the Companies Act 1993 for failing to attend meetings of creditors. Sentenced to 75 hours community work.

Section 239AW (1) under the Companies Act 1993 for failing to attend a watershed meeting. Fined $930.00 plus $130.00 court costs.
           
  Mark Lacy OPI Pacific Finance Sept-09 Sept -15 charges laid under section 58 of the Securities Act - 200 hours community service and A$100,000 fine (approx NZ$112.5K)
  Jason Maywald OPI Pacific Finance Sept-09 Sept -15 charges laid under section 58 of the Securities Act - 200 hours community service and A$100,000 fine (approx NZ$112.5K)
  David Anderson OPI Pacific Finance Sept-09 pending Oct -15 charges laid under section 58 of the Securities Act  - 300 hours community service and A$100,000 fine (approx NZ$112.5K)
  Craig White OPI Pacific Finance Sept-09 Sept -15 charges laid under section 58 of the Securities Act - Guilty Plea made 18 September 2015  - 200 hours community service and A$100,000 fine (approx NZ$112.5K)
           
  Kenneth Anderson LWR April - 09 Nov 13 6 years jail
           
  Grant Malcolm Herbert Herbert Insurance Group Ltd   Oct-14 4 years & 6 months jail - Insurance fraud case conducted by SFO - not a finance company collapse.
  Kairuaiti Tangata Oropai Robert Kairua (Robert Kairua) Grace Holdings NZ Limited (t/a BullionBuyer)   July-15 3 years and 9 months jail - charges related to false statements in brochures regarding his experience and qualifications, the nature of the trading and the insurance and storage of physical metals - not a finance company collapse.
  Peter John Scutts NZ Wine Company Ltd (NZWC)   July-15 8 months home detention - Dishonesty and corruption case conducted by SFO - not a finance company collapse
  Andrew Hrothgar Robinson Strategic Planning Group Limited (SPG)   July-15 & Oct-15

6 years jail - fraud - FMA referred the Crimes Act issues to the SFO. Mr Robinson still faces charges laid by the Financial Markets Authority under Financial Markets legislation - not a finance company collapse

1 year jail - for his involvement as a director of Strategic Planning Group Limited (SPG) and SPG Investment Company No.1 Limited (SPGI). This is in addition to the six-year term imposed in July this year on fraud charges laid by the Serious Fraud Office (SFO).

  Patrick John Renshaw Resource Management Research Services Limited (RMRSL)   Oct-15 10 months home detention after pleading guilty to 42 tax charges involving non-payment of PAYE deductions and filing false GST and income tax returns, amounting to more than $345,000. Reparations of $13,000 in instalments and a lump sum of $2,500 were ordered.
  Michael Robert McDonald McDonald Reid Limited   Nov -15 SFO - it is alleged that Mr McDonald received money from some of his clients for the purposes of paying tax but failed to forward the money to the Inland Revenue Department. He also allegedly filed approximately 250 false GST and income tax returns in order to receive money from Inland Revenue or to retain client funds that he was not entitled to. The SFO has also charged Mr McDonald for allegedly making false entries in one of his client’s financial statements in order to conceal his offending.
  Paul Thomas Staples STH Investments, 380 Express & Voltage Security   Dec-15 IRD - 3yrs jail - Staples filed 28 fraudulent documents including income tax returns and GST returns over the three years. These documents related to three companies, STH Investments, 380 Express and Voltage Security, previously known as First Response Security Services.
  Victor John Clarke Media Web Ltd (Director)   Dec-15 SFO - three years jail.Charges we for false accounting, using forged document and obtaining by deception.
  Peter Sanele and Mark Treadwell Thermakraft Industries NZ Ltd   Dec-15 SFO - 10 months home detention & 5 months community detention and 200 hrs community service respectively
  Timothy Vivian Meredith     Dec-15 IRD - 3 years 6 months for tax evasion
  Long Soun Chelsea Bakery and Lunch Bar   Jan-16 IRD - tax offences totalling nearly $280,000 relating to his business; 8 months home detention
  Jonathan Graham West Investment Centre and Matrix Futures  

Feb-16

Mar-16

May-16

SFO - the SFO alleges that between 2008 and 2013 Mr West offended by using clients' funds on their behalf but outside the agreed terms or by using his clients' money for his own purposes.

SFO - West pleads guilty to charges and will be sentenced on May 12, 2016

Sentenced to 3-years jail

  Ewan Malcolm Campbell Cattle farming and organic butchery businesses.   Feb-16 IRD - jailed for four years and nine months for not paying nearly $1.5 million in tax.
  Michael John Pallesen Central Tyres Waipukurau Ltd   Mar- 16 pleaded guilty in Hastings District Court to 28 charges of not passing on monthly tax deductions from workers' pay to Inland Revenue - totalled just over $60,400.
 

Vicki Ravana Letele

Kamni Kumar

Focus Property Investment Ltd (Focus).   Mar-16 SFO - Ms Letele was found guilty on 10 charges of dishonestly using a document. The convictions related to property transactions. The total value of the fraud being approximately $3.6 million. Ms Letele was sentenced to 3yrs and 2 months in jail. Ms Kumar was sentenced to 12 months home detention and 250 hours community service.
  Paul Kenneth Rose & Jane Clare Rose Mighty River Power   May-16 SFO - Paul Rose was sentenced to three years and two months’ imprisonment and Jane Rose was sentenced to nine months of home detention.
  Mark Andrew Turnock SPG Investment Company No. 1 Limited (SPGI)   Jun-16 FMA - four months home detention and 200 hours of community work for making false statements in the company’s financial statements.
  Peter Chevin Mutual Finance & Viaduct Capital   Aug-16 NZ Herald - pleaded guilty to 10 charges of theft by a person in a special relationship. He is due to be sentenced next month.
  Paul Bublitz, Bruce McKay and Richard Blackwood Mutual Finance & Viaduct Capital   Aug-16  
  Lance Morrison Viaduct Capital   Aug-16  
  Barrie Kenneth James George     Sep-16 SFO - Mr George received a sentence of 10 months’ home detention for offences totalling totalling $103,580.54
  Sir Ralph Heberley Ngatata Love     Sep-16 SFO - Sir Ngatata was found guilty of 'Obtaining by deception' - Sentenced to 2-years & 6 months jail
  Rebecca Maree Boyce MediaWorks staff member   Oct-16 Boyces' charges include five counts of forgery, five of using a false document and 15 of dishonestly using a document. Sentenced to 3-years jail
  Richard Gregory Beven Wanaka Lakes Health Centre   Oct-16 In June Beven pleaded guilty to false accounting and theft in a special relationship from the centre's operating company, Wanacare Ltd. Beven was sentenced to 3-years & 6 months jail
  Teremoana Kimiangatau Auckland Airport staff member   Nov-16 Pleaded guilty on all three charges of "obtaining by deception", laid by the Serious Fraud Office [SFO]. Kimiangatau was sentenced to 3-years & 2-months in jail
  Joanne Harrison Former Ministry of Transport staff member   Nov-16 SFO - Joanne Harrison has pleaded guilty today to Crimes Act charges in relation to a fraud committed during her employment at the Ministry of Transport. Entities associated with Ms Harrison obtained approximately $726,000 from the Ministry of Transport.
  Diane May Pihama     Nov-16 $355,000 Benefit fraud - sentenced to 3-years and 3-months jail

This page is a list of the sentences handed down from the resolved court cases resulting from the finance industry failures that started in 2006. We have also added in other cases covering fraud, corruption and dishonesty which have been conducted by the Serious Fraud Office (SFO).

If you have information that can update any entry, please email us at news@interest.co.nz