12 March 2013
National Finance director Anthony Banbrook has today been sentenced to eight and a half months' home detention and ordered to pay $75,000 in reparations in a prosecution taken by the Financial Markets Authority.
In June last year Mr Banbrook pleaded guilty to one charge of making untrue statements in a registered prospectus for National Finance 2000 Limited. He was sentenced this morning at the Auckland High Court.
Under the Securities Act, Mr Banbrook's conviction means he is automatically banned from managing companies for five years.
"Anthony Banbrook is the 20th finance company director to be sentenced as a result of action taken by FMA, and the last of the National Finance directors," said FMA Head of Enforcement Belinda Moffat.
Last year Trevor Allan Ludlow was sentenced to nine months' imprisonment after pleading guilty to making untrue statements in a National Finance prospectus.
Carol Braithwaite was sentenced to ten months home detention and 300 hours community service after she was found guilty of making untrue statements in a registered prospectus.
National Finance collapsed in 2006 owing over $20 million to more than 2000 investors.
"While FMA's successful prosecution of the directors of National Finance does not restore the loss which investors suffered, it sends an important message that those who participate in New Zealand's capital markets and fail to meet the standards required by law will be held to account," said Belinda Moffat.
Tony Reid on 021 739 052 or email@example.com
FMA alleged that the directors made untrue statements in the registered prospectus for National Finance 2000 Limited, dated 22 September 2005. These statements included those relating to National's provisioning for bad debts, the loans made by National to related parties, including the purpose for which those loans were made, the security provided for them and their amount relative to National's total tangible assets, and the security provided by borrowers for the loans made by National.