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FMA welcomes Bridgecorp verdicts


5 April 2012

The Financial Markets Authority today welcomed the High Court's verdicts in the trial of three former directors of Bridgecorp Limited and Bridgecorp Investments Limited.

Justice Venning found Rodney Petricevic and Robert Roest guilty on charges of breaching the Crimes Act 1961, the Companies Act 1993, and the Securities Act 1978 and found Peter Steigrad guilty on charges of breaching the Securities Act 1978.

Former director Bruce Davidson entered a guilty plea and was sentenced on 7 October 2011 to nine months home detention, 200 hours of community work, and payment of $500,000 reparation.

Former director Gary Urwin entered a guilty plea on 9 November 2011. He will be sentenced on 17 April 2012.

The Serious Fraud Office has also laid charges relating to these companies. These are scheduled to be heard in September 2012.

Ends

Contact:
Diane Maxwell on 029 200 8194

diane.maxwell@fma.govt.nz

Background

Bridgecorp Ltd and Bridgecorp Investments Ltd were placed in receivership in July 2007 with approximately $459 million owing to 14,500 investors.

Defendants:

Rodney Petricevic, Robert Roest, Bruce Davidson, Gary Urwin and Peter Steigrad.

Charges:

It is alleged that:

  • The directors made untrue statements in the investment statements and registered prospectuses of Bridgecorp and Bridgecorp Investments Limited (BIL) dated 21 December 2006 in breach of s58 of the Securities Act 1978.
  • The directors made further untrue statements when they signed prospectus extension certificates for Bridgecorp and BIL on 30 March 2007 in breach of s58 of the Securities Act 1978.
  • Mr Petricevic and Mr Roest made false statements in documents dated 21 December 2006 and 30 March 2007 in breach of section 242 of the Crimes Act 1961.
  • All four defendants made false or misleading statements in documents dated 30 March 2007 and 19 April 2007 in breach of section 377 of the Companies Act 1993.

Civil proceedings have been filed by FMA but have been stayed pending the outcome of the criminal case.

Penalties:

Criminal charges

Charges under section 58 of the Securities Act carry a maximum penalty of five years imprisonment and fines of up to $300,000.

Charges under section 242 of the Crimes Act carry a maximum penalty of 10 years imprisonment.

Charges under section 377 of the Companies Act carry a maximum penalty of five years imprisonment or fines of up to $200,000.