Securities Commission alleged that the directors made false statements in the Dominion Finance Group registered prospectus dated 13 September 2007, as amended by an extension certificate 20 December 2007 and the North South Finance registered prospectus dated 11 September 2007, as amended by an extension certificate 20 December 2007.
In addition, SC alleged that a quarterly newsletter of Dominion Finance Group and a letter to the investors of both Dominion Finance Group and North South Finance distributed during 2008 contained similar untrue statements.
The FMA together with the liquidators of Dominion Finance Group (DFG) and the receivers of North South Finance (NSF), reached a settlement pursuant to which $10.235m will be paid to liquidators and receivers for distribution in the receivership.
As a result of the settlement, the FMA will discontinue its civil proceedings against the directors of DFG and NSF. See media release.
Vance Eric Arkinstall was sentenced to 10 months home detention and 200 hours of community work.
Richard Gilbert Bettle was sentenced to 10 months home detention, 200 hours of community work and ordered to pay $90,000 in reparations.
Paul Winston Forsyth was sentenced to 11 months home detention, 200 hours of community work and ordered to pay $50,000 in reparations. See media release.
Vance Arkinstall and Richard Bettle each pleaded guilty to five Securities Act charges including making untrue statements in a Dominion Finance investment statement and extension certificate, and making an untrue statement in a North South Finance extension certificate.
Paul Forsyth pleaded guilty to seven charges of making untrue statements. See media release.
Ann Butler was sentenced to nine months’ home detention, 80 hours’ community work, and ordered to pay $300,000 reparation.
Barry Whale was sentenced to 12 months’ home detention, 250 hours’ community work and ordered to pay $75,000 reparation. See media release.
Robert Barry Whale, has pleaded guilty to seven Securities Act charges of misleading investors. See media release.
A former director of Dominion Finance Group and North South Finance, Ann Butler, has pleaded guilty to misleading investors. See media release.
The Securities Commission has laid criminal charges and issued civil proceedings against Dominion Finance Group Limited and North South Finance Limited directors Vance Arkinstall, Richard Bettle, Terence Butler, Ann Butler, Paul Forsyth and Robert Barry Whale. See media release.
Dominion Finance and North South Finance were subsidiaries of the NZX-listed Dominion Finance Holdings Limited. Dominion Finance went into receivership in 2008 owing $176.9 million to 5,900 investors. North South Finance was placed in receivership in 2010, owing $31 million to 3900 investors.
Let us know what you think
Did you find what you were after?