The Securities Commission formed the view that the offer made by TGL and the advertisement of the offer by CFS and ACP in 2006 did not comply with section 33(1) of the Securities Act in that it was not made in or accompanied by an investment statement that complied with the Act and the Securities Regulations 1983, nor was it made in an authorised advertisement, nor in or accompanied by a registered prospectus that complied with the Act and Regulations.
The parties involved were The Gables Limited (TGL), Combined Financial Services Limited (CFS), Aoraki Commerical Property Limited (ACP), Rhys David Morgan, Lorraine Te Atairehia Morgan, and Neville Ian Cant.
CFS, ACP and TGL were unaware of the contravention and acknowledged that after obtaining legal advice.
Companies offered an undertaking to the commission and as a result, all subscription money was returned to subscribers and the offer was withdrawn.
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