The former directors of the failed Five Star group appeared in court this morning on charges laid by the Serious Fraud Office.Marcus Macdonald, Anthony Bowden, Nicholas Kirk and alleged “shadow director” Neill Williams will next appear at the
The former directors of the failed Five Star group appeared in court this morning on charges laid by the Serious Fraud Office.
Marcus Macdonald, Anthony Bowden, Nicholas Kirk and alleged “shadow director” Neill Williams will next appear at the Auckland District Court on October 28 for a post-committal hearing.
The SFO has laid more than 100 charges under the Crimes Act against them over related party lending that took place between 2003 and 2007 involving loans worth $50 million, much of which is said to be irrecoverable.
The charges allege the four defendants intentionally applied funds in breach of its obligation under the trust deed, and/or dishonestly used documents with intent to obtain a benefit.
The four defendants have entered no plea and have been remanded on bail and required to hand in their passports.
They already face separate charges under the Securities Act and the Financial Reporting Act relating to false and misleading information in investment statements and the company’s 2006 registered prospectus.
That trial will begin on October 26 and is expected to last three to four weeks.
The Five Star group collapsed in 2007 owing investors more than $90 million.
Last August the directors were banned from directing or managing companies for five years.
