Criminal charges laid against Sir Doug and fellow Lombard directors
Criminal charges have been laid against Lombard Finance & Investments directors Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant.The Securities Commission has confirmed the criminal charges, ending earlier speculation, and
Thu, 15 Apr 2010
Criminal charges have been laid against Lombard Finance & Investments directors Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant.
The Securities Commission has confirmed the criminal charges, ending earlier speculation, and said the new charges relate to the same allegations as the civil proceedings announced earlier this week.
The criminal charges were laid under section 58 of the Securities Act and carry a maximum penalty of five years' imprisonment or fines of up to $300,000. They were laid in the Wellington District Court yesterday.
The directors have already said they do not accept the allegations of the commission and will be defending all the proceedings.
The commission alleges that Lombard Finance & Investments' offer documents and advertisements misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies and the company's overall financial position, commission chairman Jane Diplock has said.
Lombard Finance & Investments went into receivership in April 2008 owing about $127 million to 4400 investors.
According to the receivers it was likely secured debenture holders would receive less than 30 percent of their investment back. Unsecured creditors were likely to receive no return.
Thu, 15 Apr 2010
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