The breaches relate to Lombard's failure to disclose information to the market, such as loan book quality and liquidity, regarding the performance of its finance company subsidiary Lombard Finance and Investments Limited (LFIL).
The Supreme Court dismissed the recall application.
The defendants applied for recall of the Supreme Court’s decision of 25 October 2013 which declined leave to appeal their convictions.
SC allowed the appeal against sentence and restored the sentence originally imposed by the High Court.
PwC, the Receivers of LFIL reached a settlement with the directors, their insurers, and a third party for $10 million. We consented to that settlement and as a condition of settlement agreed to discontinue our own civil proceedings against the directors for pecuniary penalties. See media release.
SC declined leave in relation to the conviction appeal, but granted leave on the sentence appeal. The appeal in relation to the sentence was heard in February 2014.
The Court of Appeal substituted sentences of home detention for the community work sentences imposed in the High Court.
Mr Jeffries was sentenced to 8 months home detention and 250 hours community work. Mr Reeves was sentenced to 9 months home detention and 250 hours community work. Mr Graham was sentenced to 6 months home detention and 200 hours community work. Mr Bryant was sentenced to 6 months home detention. The reparation payments ordered against Messrs Graham and Bryant still stand.
The defendants applied to the Supreme Court for leave to appeal the Court of Appeal’s decision regarding their convictions and sentences.
CoA rejected the defendants' appeals against conviction and accepted FMA's appeal that the original sentences were inadequate.
Sir Douglas Graham and Mr Bryant were each sentenced to 300 hours community service and ordered to pay reparation of $100,000. Mr Jeffries and Mr Reeves were each sentenced to 400 hours community service. The convicted directors are each subject to automatic five year management bans under section 60E of the Securities Act until 29 March 2017.
The defendants all appealed their convictions.
The accused were each found guilty on four out of five counts in the indictment.
The Financial Markets Authority has withdrawn civil proceedings against Insured Group Limited (Insured). The criminal charges against the directors of LFIL remain. See media release.
The Securities Commission commenced civil proceedings against Insured Group Limited, formerly known as Lombard Group Limited, in relation to alleged breaches in 2007 and 2008 of the continuous disclosure provisions of the Securities Markets Act 1988. See media release.
Criminal charges laid against Lombard directors. See media release.
The Securities Commission issued civil proceedings under the Securities Act against Lombard Finance & Investments directors Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant. See media release.
LGL was the parent company of Lombard Finance and Investments Limited (LFIL) that collapsed in April 2008 owing $127 million to 4,400 investors. In March 2010, Perth-based Australian Consolidated Insurance Limited listed on the NZX by means of a reverse takeover of LGL and later changed its name to Insured.