Capital + Merchant directors – arrested by the Serious Fraud Office last week -- made a brief appearance in court this morning, but their case has been adjourned to February.Neal Medhurst Nicholls (55), and Wayne Leslie Douglas (57) face six charges
Capital + Merchant directors – arrested by the Serious Fraud Office last week -- made a brief appearance in court this morning, but their case has been adjourned to February.
Neal Medhurst Nicholls (55), and Wayne Leslie Douglas (57) face six charges under the Crimes Act, involving nearly $14.5 million of related party lending dating back to 2002.
The pair appeared in the Auckland District Court this morning and were remanded on bail to return to court on February 25.
Mr Nicholls and Mr Douglas were arrested by the SFO last Thursday.
The SFO alleges the directors falsely stated the true extent of related party lending in annual CMF prospectuses and associated financial statements in July 2003 and September 2004.
Loans under the spotlight include those made between April to three companies that converted two Palmerston North high-rise office blocks into student accommodation.
The SFO began investigating CMF in March following a complaint from the financier's receivers, Grant Thornton.
When Capital + Merchant was placed into receivership in 2007 it owed $167.1 million to approximately 7000 investors.
