Civil proceedings - The proceedings were issued under sections 55B, 55C, 55G and related sections of the Securities Act 1978. FMA has applied for compensation, declarations of civil liability, civil pecuniary penalties against each of the five directors and promoters - Mark Hotchin, Gregory Muir, Sir Tipene O'Regan, Bruce Gordon, Eric Watson and Dennis Broit.
Investor Alert: There are around 600 eligible investors who have either returned incomplete information to Deloitte or are yet to make a claim. FMA encouraged eligible investors to reach Deloitte by 16 Feb 2018. See media release.
Deloitte has distributed the second round of proceeds from the FMA’s settlement with the directors of Hanover to eligible investors.
Deloitte has distributed the first proceeds from the FMA’s settlement with the former Hanover directors to eligible investors who have provided complete information.
Deloitte has sent a letter to every investor who had an outstanding investment in the Hanover Finance Companies as at 23 July 2008 advising them whether or not they are eligible for a share in the settlement sum or whether Deloitte requires additional information to determine eligibility.
FMA has reached a settlement of its civil proceedings against the former directors of Hanover finance companies, and the former directors of a parent firm, Hanover Group Ltd. As part of the settlement, $18 million will be distributed to eligible investors who invested in the Hanover finance companies in the period from 7 December 2007 to 23 July 2008. See media release.
FMA filed civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd and United Finance Ltd
The Financial Markets Authority announced that it proposes to file civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd, and United Finance Ltd in 2012. See media release.
Mr Hotchin appealed the upholding of the interim asset preservation orders by the High Court.
Interim Asset Preservation Order
The High Court granted interim asset preservation orders in respect of assets believed to be associated with former Hanover director Mark Hotchin to the Securities Commission(FMA's predecessor). See media release.
Hanover Finance was a New Zealand non-bank finance company that focused on lending for high-risk property development that failed in 2010(with due repayments of NZ$554 million owed to 36,500 investors) under the leadership of Mark Hotchin.
FMA alleges that the directors and promoters made untrue statements in the registered prospectuses and investment statements of Hanover Finance, Hanover Capital and United Finance dated 7 December 2007. FMA also alleges that the directors made further untrue statements in certain advertisements and when they signed prospectus extension certificates on 31 March 2008.