The accused are Edward Sullivan, Robert White, Lachie McLeod, Terrence Hutton, Graham Brown. The SFO has laid 21 charges in total with FMA's assistance. The charges are laid under provisions of the Crimes Act: sections 220 (theft by person in special relationship), 240 (inducing by deception), 260 (false accounting) and 242 (false statement by promoter).
The FMA has closed its inquiries into potential civil claims relating to South Canterbury Finance Limited (SCF). In making its decision, the FMA took into account that Crown Asset Management Limited (CAML) had taken civil proceedings against the directors of SCF. See media release.
Mr Sullivan was sentenced to 12 months' home detention and 400 hours community service.
Messrs White and McLeod were found not guilty.
Mr Sullivan was found guilty on 5 charges being 4 charges of false statement as a promoter under s242 of the Crimes Act and 1 charge of obtaining by deception under s240 of the Crimes Act.
Judge alone trial commenced on 12 March 2014 and concluded on 18 August 2014.
Crown withdrew its charges against Mr Brown and Mr Hutton in a pre-trial hearing.
Case transferred to the High Court in Timaru.
FMA to support SFO's South Canterbury Finance prosecution. Criminal charges filed in the District Court of Timaru. See media release.
In August 2010, South Canterbury Finance was placed in receivership owing depositors NZ$1.7 billion. It's assets valued at approximately NZ$1.9 billion, including subsidiary companies in property development, vehicle leasing and insurance. The Government paid out to all 35,000 investors $NZ1.6 billion under the Retail Deposit Guarantee Scheme.