Capital + Merchant directors to face further SFO charges
SFO lays 11 charges under the Crimes Act against three Capital + Merchant Finance directors
The Serious Fraud Office (SFO) has laid 11 charges under the Crimes Act against three Capital + Merchant Finance directors – alleged to have pocketed $15.9 million before the financier collapsed.
The three accused are Neal Medhurst Nicholls (55), Wayne Leslie Douglas (57) and Owen Francis Tallentire (64) and will appear at the Auckland District Court on August 5.
Capital + Merchant Finance collapsed in 2007 owing more than $165 million to about 7,000 investors.
The SFO charges relate to transactions involving just over $28 million that occurred between 2004 and 2006, which the SFO alleged breached the company’s trust deed.
The SFO commenced its investigation into Capital and Merchants in March last year, following a complaint from C+M receivers, Grant Thornton.
Initial charges were laid against Mr Nicholls and Mr Douglas under the Crimes Act in December. The charges relate to the alleged non-disclosure of related party lending of about $14.5 million, to a Palmerston North development known as ‘The Hub Properties’.
Mr Nicholls and Mr Douglas will appear for trial in relation to these charges in February.
Acting SFO director, Simon McArley, said confidence in New Zealand’s financial markets would not be restored unless investors believed there had been thorough investigations and, where appropriate, serious criminal charges laid against those responsible for the collapse of the finance companies.
NBR staff
Wed, 13 Jul 2011
Wed, 13 Jul 2011
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Capital + Merchant directors to face further SFO charges
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