I did nothing wrong but charges possible - Hotchin
Former Hanover Finance boss Mark Hotchin admits he and other directors could face charges over the multi-million dollar collapse of the company.
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Former Hanover Finance boss Mark Hotchin admits he and other directors could face charges over the multi-million dollar collapse of the company.
Mr Hotchin said today none of the directors did anything wrong over the loss by more than 16,000 investors of more than $500 million they had invested in the company.
Initially Mr Hotchin maintained directors would not face charges over the collapse of the company, but today admitted there was a possibility.
"If it is, I suspect it will be some form of securities advertisement or something like that. I am speculating," he told NewstalkZB.
He said in any company prospectus there were lots of words.
"You only have to get one of those wrong to have a default or have an issue. That could well happen. But in terms of knowingly misleading or knowingly doing something wrong... no," he said.
He said did not worry about going to jail because he had done nothing wrong.
If the board had signed off a prospectus that was later found to include an error, it was unlikely to be a jailable offence.
He said he was "not sure" he continued to lead a flamboyant lifestyle when the company folded but admitted his lavish 50th birthday party in Fiji two years ago was "clearly a mistake. The timing was appalling. I didn't however pay for it".
Mr Hotchin now lives in Australia with his family on an income of $1000 a week. He is seeking to overturn a High Court order freezing his New Zealand assets.
If his assets were released by the court order he would be virtually broke after he paid his bills, he said.
"Not quite no money, but close to no money."
His total wealth was a few hundred thousand dollars and that included trusts that were his.
The land in Paratai Drive where his $30 million house was being built was owned by a trust, while he had paid for the building.
He said he had given most of what he owned to shareholders who had lost money and anything he had left was frozen. When it was freed up, the bulk of it would go on taxes.
Mr Hotchin told TVNZ's Breakfast show he did not know if he had a business future in New Zealand but would "pursue business opportunities" although they would probably not be in the finance company sector.
NZPA
Fri, 18 Feb 2011
Fri, 18 Feb 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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I did nothing wrong but charges possible - Hotchin
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