Finance company investigations can rack up enormous amounts of documents, according to the Securities Commission.
The commission has released a list of its 50 finance company investigations, detailing which companies are being looked at and what stage the investigations are at.
The media release highlighted the complexity and massive amount of paperwork involved in a finance company investigation.
“If all the electronic data managed by our inspector in a 2010 case had been printed and stacked, it would have been as high as Auckland’s Sky Tower,” it said.
“It took two experienced forensic accountants, a financial analyst and a data/electronic discovery manager more than 900 hours (or 21 weeks) complete their investigation.”
It has completed 26 finance company investigations and is continuing with 24.
Criminal charges have been laid against 35 directors or officers of 14 finance companies.
The charges have been laid by the Commission or, following referral by the commission, by the National Enforcement Unit of the Companies Office.
Three directors have been convicted. The other cases are still before the courts.
In most of the cases, civil proceedings have also been commenced by the commission.
Here is a list of investigations into finance companies and their current status:
STATUS OF INVESTIGATIONS INTO FAILED FINANCE COMPANIES (Non-bank deposit takers)
Company Event Start of investigation Current status
Continuing investigations-
1. Allied Nationwide Finance Receivership August 2010 Continuing
2. Aorangi Securities Complaint June 2010 Continuing
(including Hubbard Management Funds##)
3. Belgrave Finance Receivership May 2008 Continuing
4. Boston Finance Moratorium March 2008 Continuing
5. Equitable Mortgages Receivership November 2010 Continuing
6. Geneva Finance Moratorium October 2007 Continuing
7. Hanover Capital Moratorium July 2008 Continuing
8. Hanover Finance Moratorium July 2008 Continuing
9. Kiwi Finance Receivership April 2008 Continuing
10. LDC Finance Receivership September 2007 Continuing
11. Mascot Finance Receivership March 2009 Continuing
12. Mutual Finance Receivership July 2010 Continuing
13. OPI Pacific Finance Moratorium March 2008 Continuing
(formerly MFS Pacific Finance)
14. Propertyfinance Securities Receivership August 2007 Continuing
15. Rockforte Finance Receivership May 2010 Continuing
16. South Canterbury Finance Receivership August 2010 Continuing
17. All Purpose Finance Receivership November 2008 Continuing
(trading as St Kilda Finance)
18. St Laurence Moratorium June 2008 Continuing
(including Direct Property)
19. Strata Finance Receivership April 2009 Continuing
20. Strategic Finance Moratorium August 2008 Continuing
(including Strategic Nominees)
21. Structured Finance Moratorium May 2009 Continuing
22. United Finance Moratorium July 2008 Continuing
23. Viaduct Capital Receivership May 2010 Continuing
24. Vision Securities Receivership March 2010 Continuing
Charges laid-
1. Bridgecorp Receivership July 2007 Charges laid
2. Bridgecorp Investments Liquidation July 2007 Charges laid
3. Capital & Merchant Liquidation November 2007 Charges laid
4. Clegg & Co Receivership October 2007 Referred to other regulator * (charges laid – guilty plea and sentenced)
5. Dominion Finance Receivership September 2008 Charges laid
6. Fendal Finance Complaint March 2009 Referred to other regulator * (charges laid)
7. Five Star Consumer Finance Receivership August 2007 Referred to other regulator * (charges laid – guilty pleas)
8. Five Star Finance Receivership September 2007 Referred to other regulator * (charges laid – guilty pleas)
9. Lombard Finance Receivership April 2008 Charges laid
10. Nathans Finance Receivership August 2007 Charges laid
11. National Finance Receivership May 2006 Referred to other regulator * (charges laid – one guilty plea)
12. North South Finance Moratorium June 2008 Charges laid
13. QED Liquidation March 2008 Referred to other regulator * (charges laid – sentenced)
14. Waipawa Finance Liquidation August 2008 Referred to other regulator ** (charges laid – guilty plea and sentenced)
Referred to another regulator, concluded with another enforcement option or closed-
1. Antares Liquidation May 2008 Referred to other regulator *#
2. Provincial Finance Receivership May 2006 Referred to other regulator *
3. Western Bay Finance Receivership August 2006 Referred to other regulator *
4. Finance & Investments Receivership September 2007 Concluded (enforceable undertakings) ###
5. Beneficial Finance Moratorium October 2007 Closed ###
6. Capital & Merchant Investments Receivership November 2007 Closed ###
7. Chancery Finance Liquidation November 2008 Closed ###
8. Compass Capital Receivership June 2009 Closed ###
9. Cymbis/Fairview Receivership May 2008 Closed ###
10. Dorchester Finance Moratorium June 2008 Closed ###
11. Numeria Finance Receivership December 2007 Closed ###
12. Orange Finance Moratorium August 2008 Closed ###
* National Enforcement Unit of the Ministry of Economic Development
** Serious Fraud Office
# Relates to Five Star prosecution
## Legal status as non-bank deposit taker subject to confirmation
### On the basis of information we currently have. The Commission will continue to include these issuers within its general surveillance. Our decision can and will be reviewed, and our investigation be reopened, if new information comes to light.
Niko Kloeten
Fri, 03 Dec 2010