Belgrave Finance receivers fail in compound interest bid
Receivers for Belgrave Finance have won an $8.6 million claim against a former director and associated property developer, falling short of the $15 million they had pursued.
In a judgment released today, Justice John Fogarty has stopped short of awarding a further $6.29 million in compound interest. Instead the receivers will receive simple interest on the $8.6 million figure to be calculated from 2005. (see the judgment attached)
Belgrave Finance was placed into receivership in May 2008, owing 1000 investors more than $20 million. Investors have got back 17.4c in the dollar of their principal, according to the latest receivers' report.
The lawyer for the receivers, Chapman Tripp partner Michael Arthur, said Justice Fogarty indicated at the hearing he would find in favour of the receivers in the claim against director Shane Buckley and terminally ill developer Raymond Schofield. Neither was represented at the trial.
The judge found Mr Schofield had dishonestly assisted the directors of Belgrave, and that Buckley breached his duties to the firm.
“Buckley failed to exercise his management powers and carry out his management duties in Belgrave’s best interests.
“He was disloyal to Belgrave in using his position to advance the interests of Mr Schofield and the various entities associated with him,” the judgment says.
Buckley pled guilty to 25 charges on May 25, 2012 and was sentenced to three year’s imprisonment in August that year.
Mr Schofield was granted a conditional stay of the criminal proceeding on the grounds that he has a terminal illness.