25 May 2012
The Financial Markets Authority today welcomed the guilty plea of a director of Belgrave Finance.
Shane Joseph Buckley, a director of failed finance company
Belgrave Finance Limited (In receivership and In
liquidation), pleaded guilty to 25 charges laid by the
Financial Markets Authority and the Serious Fraud Office, in a
joint prosecution under the Securities Act, Crimes Act, and the
Companies Act.
The charges relate to Mr Buckley's breach of the Securities Act by
making untrue statements in documents offering securities to the
public, and breach of the Companies Act by making a false or
misleading statement to the trustee who is appointed to safeguard
the interests of investors in Belgrave secured debenture stock.
Other charges brought by the SFO under the Crimes Act are for theft
by a person in a special relationship and for false statements made
by a promoter.
"The FMA welcomes the early guilty plea which will reduce the cost
of the prosecution," said Belinda Moffat, FMA Head of
Enforcement.
The prosecution involving similar charges against another
director, Stephen Charles Smith, and an associate, Raymond Tasman
Schofield, continues. A trial date has yet to be set. The FMA and
SFO will continue to work closely together to progress this
case.
Background
Belgrave Finance Limited was incorporated in September
2000. The company was purchased by Stephen Smith and Shane
Buckley in June 2005.
Belgrave provided loans for commercial and residential property
development. Funds for lending were sourced primarily from the
issue of securities to the public in the form of debenture stock
and convertible capital notes.
Belgrave was placed into receivership in May 2008 owing
approximately $22 million to around 1,000 investors.
The company was placed into liquidation in April 2010, the 20th
finance company to collapse in two years.
Ends
Contact:
Tony Reid on 021 739 052 or tony.reid@fma.govt.nz