Five Star's Anthony Bowden sentenced to home detention

FIve Star Finance director Anthony Walpole Bowden has been sentenced to nine months' home detention and ordered to do 400 hours of community work after pleading guilty to two theft charges.

Justice Paul Heath has just delivered the sentence in Auckland High Court.

The Serious Fraud Office (SFO) laid 100 charges against Bowden and former manager of the Five Star Finance Group Neill Alan Williams over related party lending worth more than $50 million.

Bowden, 72, entered a late guilty plea to two charges of theft by a person in a special relationship, following a sentence indication hearing in mid April.

Mr Williams , who entered a not guilty plea, now faces the trial due to start on June 18 alone. 

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ABOVE: Bownden's last known residence - 64 Rame Rd in the upmarket Auckland lifestyle suburb of Greenhithe.  

The theft charges involved related party lending of $35 million between April 2003 and March 2007, and other loans of $14.2 million made in March 2007.

Bowden's guilty plea meant he was deemed to be acquitted on seven other charges.

Up for sentencing today, he faced a maximum penalty of seven years' imprisonment.

Fellow directors Marcus MacDonald (71), a commercial lawyer, and Nicholas Kirk (66), an accountant, were sentenced before Christmas 2010 to jail terms of two years three months and two years eight months respectively for offences under the Crimes, Securities and Financial Reporting Acts.

The pair were the first jail scalps taken by the SFO in relation to a major finance company failure.

Bowden has previously served a sentence of nine months' home detention after pleading guilty, also ahead of trial, to Securities Act charges relating to misleading investors in Five Star's offer documents.

Justice Heath said this, ultimately, saved him from an otherwise certain jail term.

Home detention sentences are usually limited to one year.

But the fact Bowden had already served one home detention sentence gave the judge the ability to impose a further term of up to one year.

Justice Heath wanted to make an example of Bowden's late guilty plea, only awarding a minimum discount to the total sentence of 10%.

"Had you taken responsibiltiy earlier, a significant credit could have been expected," Justice Heath said.

"I must make clear the court will look very carefully for those who enter later pleas for charges regarding dishonesty.

"It is a tactic the court must guard against in other cases."

Five Star Finance fell over in August 2007 owing investors more than $90 million.

Receivers have estimated the total loss of investor principal is likely to be at least $37.5 million.

Bowden avoided bankruptcy last year after striking a deal with Westpac over a debt described as "substantial".