Failed finance co director's family to repay investors
The Financial Markets Authority says debenture investors in failed Kiwi Finance will be fully repaid the $1.2 million they are collectively owed - by the family of a former director.
In a statement, the FMA says the repayment covers all remaining principal owed to secured debenture investors, plus interest outstanding up until Kiwi Finance went into receivership in April 2008.
Three of Kiwi Finance's four former directors, Rodney Greensill, Chris Simkin and Barry Lambert, have undertaken not to act as managers of an issuer of debt securities for a period of five years. Rhys Greensill has undertaken not to act as a manager of an issuer of debt securities for a period of three years.
The Greensill family is paying all of the $1.2 million of reparation, which is reflected in the shorter period of Rhys Greensill's management undertaking.
FMA CEO Sean Hughes said the outcome was an excellent one for Kiwi Finance investors.
Mr Hughes said; "As signalled in our Enforcement Policy earlier this year we want to focus our resources on conduct that harms the function of open, transparent and efficient capital markets. In this instance full restitution of investors' funds, together with an enforceable undertaking from the Directors, is a good conclusion to the investigation and a strong outcome for Kiwi Finance investors."
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Comments and questions11
April 08 - Dec 2011 That's a lot of sleepless nights for their "clients"
Why the delay?
Remember justice delayed is no justice at all!
What about the non debenture investors?
What about the Hanover Finance and Strategic Finance directors/shareholders paying their investors back from the funds they have retained.
At least the Kiwi Finance director has integrity - it may have taken some time but at least he honoured his moral and ethical obligations.
Unfortunately morals and ethics haven't been part of some of the failed finance company directors mind sets.
All those dumb investors should have known that these companies were going to lend to developers with unviable projects - even in those times - idiots
All their fault - yeah right
What about Somers-Edgar and his FirstStep fund? 7000 investors are still out of pocket and nothing appears to be happening.
What a joke. Anyone would think that the Greensill family were doing the investors a favour. Like h*ll. They are just paying them guilt money from the ill gotten gains they received when their crooked family member Rodney stole it from the investors. At least they are coughing up unlike Rodneys partners (and the countless others in Strategic, Hanover etc) who are too gutless , arrogant and greedy to do likewise. Shame on them, but what goes around comes around. The incompetence and outright white colar crime perpetuated by of so many so called financial whizz kids makes you sick and is a blight on our small society.
Nothing like a bullet to the back of the skull or a lengthy prison term (as they do in Asia) to deter these scam bags who prey on the elderly and naive.
Look at the likes of Rod Petrocevic and Andrew Kruzkeiner living the high lives with their ill-gotten gains and funds safely hidden and protected in family trusts etc. Meanwhile, their victims suffer in misery and some have committed suicide.
Morals, ethics, justice. All just words in some parts of our society now!
This great result has nothing to do with the FMA
So why are they claiming some credit for this??
Maybe the family held debenture stock and it was just a money go round ??
The FMA is nothing short of a wink wink nod nod organisation...just like the securities commission, justice department etc. What mugs most NZers are to be sucked in by such PR rubbish . Hughes probably plays golf at the same club as some of his illustrious clients so doesn't want to tarnish his reputaion too much(who cares about the little people who have lost money??)
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