Capital + Merchant Finance Limited (CMF)

The FMA has determined to discontinue its civil proceedings in light of the outcome of the criminal proceedings, the actions taken by the receivers and liquidators, and the limited personal assets of the directors, there would be little prospect of any recovery for investors if it were to pursue its civil claim. Related media release: FMA’s Capital + Merchant Finance civil proceedings discontinued.

Mr Douglas was sentenced to eight months’ imprisonment and Mr Nicholls was sentenced to 12 months’ imprisonment. This is on top of the current seven and a half years’ imprisonment. Related media release: Capital + Merchant Finance directors receive increased prison sentences.

Owen Tallentire was sentenced to 12 months' imprisonment on top of his current five-year fraud sentence.

Colin Ryan was sentenced to seven months' home detention, 300 hours community work and ordered to pay $100,000 reparation.

Robert Sutherland was sentenced to six months' home detention, 300 hours community work and ordered to pay $60,000 reparation. Related media release: Three directors sentenced in Capital + Merchant Finance case.

Wayne Leslie Douglas and Neal Medhurst Nicholls pleaded guilty to FMA charges against them. Related media release: Another two Capital + Merchant directors plead guilty to FMA charges.

Robert Gordon Sutherland and Colin Gregory Ryan, who reside in Australia, pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement. Related media release: Two more directors plead guilty in Capital + Merchant Finance case.

CMF director, Owen Francis Tallentire pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement. Related media release: Guilty plea in Capital + Merchant Finance case.

FMA filed criminal charges against the directors in the District Court at Auckland.

FMA filed Civil Proceedings in the High Court at Auckland against four of the directors - Messrs Nicholls, Tallentire, Ryan, and Sutherland - seeking declarations of civil liability and civil pecuniary penalties.

Three Directors were serving prisoners for offences under the Crimes Act following an investigation by SFO into the failure of CMF as below:

• Owen Tallentire - a five-year sentence
• Wayne Leslie Douglas - seven and a half years' imprisonment
• Neal Medhurst Nicholls - seven and a half years' imprisonment

Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.