17 August 2012
The Court of Appeal has dismissed an appeal by the
trustees of the KA3 and KA4 trusts on interim asset preservation
orders obtained by FMA.
The trustees were appealing the High Court's earlier decision to
uphold interim asset preservation orders in respect of assets of
the trusts of former Hanover director Mark Hotchin. FMA was
opposing the appeal.
FMA CEO Sean Hughes said, "These orders are important for enabling
FMA to preserve assets for aggrieved investors pending the outcome
of the civil proceedings filed by FMA in March."
Background:
In December 2010 the High Court granted interim asset preservation
orders in respect of assets believed to be associated with former
Hanover director Mark Hotchin. Those orders bound Mr Hotchin and
the trustees of the KA3 and KA4 Trusts. The orders were sought by
FMA's predecessor, the Securities Commission.
Mr Hotchin appealed the upholding of the orders in December 2011 by
the High Court. That appeal was opposed by FMA. The appeal was
dismissed by the Court of Appeal in April this year.
The trustees of the KA3 and KA4 Trusts also appealed the upholding
of the High Court's orders of December 2011. FMA opposed that
appeal.
FMA filed civil proceedings against the directors and promoters of
Hanover Finance Ltd, Hanover Capital Ltd and United Finance Ltd on
30 March 2012. No hearing date has been allocated for this
proceeding yet.
Ends
Contact:
Tony Reid on 021 739 052 or tony.reid@fma.govt.nz