Serious Fraud Office launches inquiry into Dominion Finance related party deals

Serious Fraud Office launches inquiry into Dominion Finance related party deals

The Serious Fraud Office (SFO) has announced an investigation into related party deals done by Dominion Finance and North South Finance before they collapsed in September 2008.

Chief Executive Adam Feeley said the SFO had conducted an "extensive preliminary inquiry prior to commencing a formal investigation."

“The investigation will focus on a small number of related party transactions which will ensure we complete the investigation in a timely manner," he said.

Feeley added that the SFO would coordinate its efforts with the Registrar of Companies and the Securities Commission, who have laid criminal charges against directors of Dominion Finance and North and South Finance, including founders Terry and Ann Butler and prominent savings industry lobbyist Vance Arkinstall.

Dominion Finance Group went into receivership in June 2008 owing about NZ$232 million to some 5,900 investors.

Receivers say investors are likely to get back less than 25% of their money. Unsecured creditors are likely to get nothing.

North South collapsed in June 2008 owing NZ$100 million to 6,925 investors.

Receivers have said they are like to get back 70% of their money.

See all the details in our Deep Freeze list here.

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Yep...  all the bigger finance companies are going to get a going over from the SFO...  

Yeah right Horace

The SFO seems to be intimidated by Strategic Finance and Hanover Finance. They must have enough on those two companies to utilise all of the SFO staff for 10 years. But they do nothing.

Adam Feeley seems to be concentrating on the little cases of fraud and is a bit daunted attacking Strategic Finance and Hanover Finance. He should take his staff off Hubbard and concentrate on real crimes.

It is great that at least the SFO is making progress but they need to nail the major crims so the NZ financial markets can return to normality and with sound rules under the new FMA, the Govt has created. Otherwise we will just have another repeat of bad practice and bad investor experience.

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