FMA laid criminal charges and civil proceedings against five directors of CMF, Neal Nicholls, Owen Tallentire, Colin Ryan, Wayne Douglas and Robert Sutherland, under the Securities Act. These charges related to untrue statements in offer documents distributed in 2006.
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. See media release.
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. See media release.
Wayne Leslie Douglas and Neal Medhurst Nicholls pleaded guilty to FMA charges against them. See media release.
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. See media release.
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. See media release.
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:
Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.