FMA alleges former Belgrave directors Stephen Charles Smith and Shane Joseph Buckley, and associate Raymond Tasman Schofield, breached section 58 of the Securities Act by making untrue statements in documents offering securities to the public. FMA alleges that in substance Mr Schofield acted as a director of Belgrave. The defendants also breached section 377 of the Companies Act 1993 by making a false or misleading statement to the trustee appointed to safeguard the interests of investors in Belgrave secured debenture stock.
Hugh Edward Staples Hamilton, who was a legal advisor to Belgrave, is also alleged to be involved in the conduct of the Belgrave directors.
The SFO has also laid charges against the men under the Crimes Act 1961.
Mr Hamilton's appeal of his sentence was dismissed which was heard on 10 February 2015.
Stephen Charles Smith (45) was sentenced to 4 years imprisonment. See media release.
Mr Stephen Smith pleaded guilty to 25 charges under the Crimes Act, Securities Act and Companies Act. See media release.
The High Court at Auckland granted Mr Schofield a conditional stay of the criminal proceeding on the grounds that he has a terminal illness.
Hugh Edward Staples Hamilton (61) has appeared at the Auckland District Court charged with fraud. See media release.
Shane Joseph Buckley was sentenced to 3 years' imprisonment and five-year management ban. See media release.
Mr Buckley pled guilty to 25 charges laid under the Securities Act, Crimes Act, and the Companies Act. See media release.
Criminal charges filed against Belgrave directors - Mr Smith, Mr Buckley, and Mr Schofield in the District Court at Auckland. See media release.
The company was placed into liquidation owing approximately $22 million to around 1,000 investors.
Belgrave Finance Limited was incorporated in September 2000 and was purchased by Stephen Smith and Shane Buckley in June 2005. It 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.