Former Belgrave Finance director, Stephen Charles Smith (43), and an associate, Raymond Tasman Schofield (49), have appeared in the Auckland District Court to face charges arising from the collapse of Belgrave Finance.
Former Belgrave Finance director, Stephen Charles Smith (43), and an associate, Raymond Tasman Schofield (49), have appeared in the Auckland District Court to face charges arising from the collapse of Belgrave Finance.
The Serious Fraud Office (SFO) last week laid 60 charges against three persons, alleging the defendants misrepresented to investors how their investments in Belgrave Finance would be used, and subsequently used those funds in an unauthorised manner. The third person has not been named and will appear at a later date.
The charges relate to over $18 million of loans made by Belgrave Finance to various entities allegedly related to Mr Schofield and the company between June 2005 and March 2008.
The charges have been brought under the Crimes Act and, if convicted, the defendants face up to ten years jail.
The Financial Markets Authority (FMA) has also laid charges against the three under the Securities Act and Companies Act.
SFO chief executive Adam Feeley said the SFO had been working closely with the FMA on the Belgrave Finance case and other finance company investigations.
The decision on Belgrave is the 12th finance company investigation concluded by SFO. There are four remaining SFO investigations into finance companies, all of which were all less than a year old.
"We expect to conclude the majority of these cases shortly, but in every instance timing will be ultimately determined by evidence acquired and the issues arising."
Belgrave Finance was placed into receivership in May 2008, owing an estimated 1,000 investors approximately $22 million. The Securities Commission (now FMA) made initial investigations into the company’s collapse before referring it to the SFO in June 2010.
Mr Feeley said that the SFO were continuing investigations into Belgrave Finance to determine whether additional persons should be charged in relation to the allegations.
Also today, the Financial Markets Authority announced it has laid 69 criminal charges against three people associated with failed finance company Belgrave Finance.
FMA alleges former Belgrave directors Stephen Charles Smith and Shane Joseph Buckley, and associate Raymond Tasman Schofield, breached section 58 of the Securities Act by making untrue statements in documents offering securities to the public. FMA alleges that in substance Mr Schofield acted as a director of Belgrave.
The statements related to:
If convicted, the three men face a maximum penalty of five years’ imprisonment or fines of up to $300,000 plus $10,000 for every day the offence continued.
FMA further alleges the three men breached section 377 of the Companies Act 1993 by making a false or misleading statement to the trustee appointed to safeguard the interests of investors in Belgrave secured debenture stock.
The maximum penalty for a breach of section 377 is five years' imprisonment or a $200,000 fine.
The charges follow an investigation started by FMA’s precursor, the Securities Commission, which referred the file to the SFO on in May 2010.
Belgrave was placed into receivership in May 2008 owing approximately $22 million to around 1,000 investors.
