Kenneth Anderson, a former director and owner of failed clothing maker Lane Walker Rudkin Industries, has been jailed for six years after pleading guilty to fraud.
Anderson last month pleaded guilty to three representative charges under the Crimes Act of dishonestly using a document and a further one representative charge under the Act. The charges relate to false statements used to get lending facilities and a letter of credit from Westpac New Zealand, which resulted in $70 million of losses.
His co-accused, who wasn't identified, was fined $2,000 after pleading guilty last month to using false documents to obtain funds under a letter of credit.
"We feel for the staff who contributed to the once successful LWR brand and who were then victims of its collapse due to the activities of the defendants," said Serious Fraud Office director Julie Read. "The SFO hopes this result will help deter similar crimes and maintain the integrity and credibility of New Zealand businesses."
LWR and associated companies were put in receivership in April 2009 and the SFO launched an investigation five months later, following a complaint from receivers BDO Spicers. Anderson and the other individual were charged in July 2011.