27 July 2012
The Financial Markets Authority has today welcomed the guilty
verdict of National Finance director Carol Braithwaite.
Ms Braithwaite was this morning found guilty on one charge of
making untrue statements in a prospectus for National Finance 2000
Ltd.
FMA Head of Enforcement Belinda Moffat said, "The decision should
act as a reminder for what is reasonably expected of directors in
their governance role and disclosure document obligations."
"A high level of professionalism amongst directors is essential
for restoring market confidence," Ms Moffat said. "Directors need
to be aware of their obligations and it is no excuse to say they
did not understand them or relied upon others."
Ends
Contact:
Tony Reid on 021 739 052 or tony.reid@fma.govt.nz
Background:
FMA alleged that Carol Braithwaite is guilty in respect of untrue
statements made in the registered prospectus for National Finance
2000 Limited (in receivership and liquidation), dated 22 September
2005. These statements included: National Finance's provisioning
for bad debts; related party lending (including interest free
unsecured loans to Ms Braithwaite and her de facto partner, Trevor
Allan Ludlow, to purchase four luxury apartment s in Fiji); the
types of assets or security held by National Finance.
Carol Braithwaite is the third and final director of National
Finance to be charged. Earlier this year, in a case taken by FMA,
another director Trevor Allan Ludlow was sentenced to nine months
imprisonment after pleading guilty to making untrue statements in a
National Finance prospectus. He was already serving five years and
seven months imprisonment for theft by a person in a special
relationship and false accounting, in a separate case taken by the
Serious Fraud Office.
In June this year, director Anthony Banbrook pleaded guilty to
making untrue statements in a National Finance prospectus. He will
be sentenced next month.
National Finance collapsed in 2006 owing over $20m to more than
2,000 investors.