Lombard appeal to be heard in September

The convicted Lombard Finance directors' appeal will be heard in September, the Court of Appeal has confirmed to NBR Online.

“We are looking around September 2012 to hear this case, assuming it will require reasonable hearing time given the length of the trial in Wellington High Court and four appellants,” deputy registrar Deborah Leslie says.

The appeal may take as long, if not longer, than the eight week judge-alone trial which found the four guilty of making statements in a prospectus which led to 4400 investors losing approximately $127 million after Lombard Finance went into receivership in April 2008.

Last month, the four escaped jail sentences.

Sir Douglas Graham and Lawrence Bryant were sentenced to 300 hours of community work and fines of $100,000 each.

Bill Jeffries and Michael Reeves were sentenced to 400 hours' community service.

These sentences were stayed until the outcome of the appeals, which means it may be next year before the men begin their sentences if their appeals fail.

Appeals were filed separately but will be heard together.

Grounds for appeal are expected to challenge the High Court finding on the duties, responsibilities and accountability of the directors - what they knew and what they should have known - which formed the core of the successful prosecution.

The appeal against conviction - an assertion Justice Robert Dobson got it all wrong - will effectively be a trial within a trial.

During sentencing, Crown prosecutor Colin Carruthers QC argued an appeal by the four against their sentence would be the “antithesis of remorse”.

Mr Carruthers urged the Wellington High Court to sentence non-executive directors Sir Douglas, Bryant and Jeffries to 2 ½ years in prison and chief executive Reeves to two years, nine months imprisonment.

Defence lawyers said their clients had “suffered enough” injury to their reputations.

Justice Dobson said expressions of remorse by former chairman Sir Douglas and fellow director Bryant were mitigating factors in final sentencing.

Jeffries “declined to express remorse”, he said in sentencing.

Several victim impact statements were heard during the eight-week trial and sentencing and may still be rehashed during the appeal.

Evidence was given of how a young couple lost money they planned to use for fertility treatment when the company collapsed.

“I trusted these people. I hope they have learned from their mistakes,” Tristan Hooker said in a statement to the court.

The demise of Lombard Finance was a one part of phenomenal finance company failures.