The Serious Fraud Office has charged Dominion Finance directors Terry Butler and Robert Whale, and former CEO Paul Cropp with 'theft by a person in a special relationship.'
One other person who cannot be named was also charged. There are 14 charges against the four people.
The NZX-listed Dominion Finance and its subsidiary North South Finance suspended payments to investors in July 2008 and were later put into receivership. They had lent to property developers.
At the time of the appointment of receivers they owed about 6,000 investors about NZ$400 million.
"It is alleged that between 2004 and 2008, the defendants participated in unauthorised related party lending totalling over NZ$20 million, in breach of the trust deeds entered into by DFG (Dominion Finance Group Ltd) and North South," the SFO said.
SFO Chief Executive Adam Feeley said the charges concluded the twelfth investigation into a finance company by the SFO, with only a further three yet to be completed. Of those concluded, eight have resulted in charges being laid by the SFO, and a further one was charged by another agency.
“The remaining investigations – South Canterbury Finance; Rockforte Finance; and Hanover Finance, are well advanced and nearing conclusions.”
DFG was placed into receivership on 9 September 2008 and Dominion Finance entered voluntary administration the following month.
Receivers were then appointed to North South in July 2010. In total, the three entities owed approximately 6,000 investors and lenders an estimated $400 million.
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