Judge reserves decision in Lombard Finance case

By Paul McBeth

Feb. 3 (BusinessDesk) – Justice Robert Dobson has reserved his decision after defence counsel for the directors of Lombard Finance & Investments concluded their summing up today.

In the High Court in Wellington, Justice Dobson said he will work towards reaching his decision by Feb. 24, though there is the prospect that might be deferred.

Lombard Finance directors Doug Graham, Bill Jeffries, Lawrie Bryant and Michael Reeves are accused of making untrue statements in a 2007 prospectus, investment statement and advertising material.

David Hurd, counsel for Jeffries, wrapped up today, criticising the Securities Commission’s investigation, and saying lead investigator Michelle Peden’s review was inadequate.

Peden, a forensic accountant, misunderstood Lombard Finance’s operation, and didn’t engage appropriate experts, such as valuers, auditors, and corporate governance specialists, Hurd said.

During his conclusion, Hurd raised the possibility the amended prospectus in question was voided by the procedural delay in lodging an associated extension certificate, and though he couldn’t make a more comprehensive argument, he asked the judge to consider it as a “live matter”.

Hurd criticised the prosecution shifting its case throughout the proceedings, and urged the judge to consider the requirement for proof to be established “beyond reasonable doubt.”

Prosecutor Colin Carruthers was given the opportunity to address the judge in the same manner he would if it were a jury trial before the judge’s summary. He rejected criticism the Crown had changed its case through the trial, and accusations the particulars of the indictment were as narrow as the defence claimed.

Counsel for the defence opposed Carruthers’ address, saying it went beyond what he was allowed to submit.

The trial was set down for six weeks, but lasted for eight weeks.

(BusinessDesk)

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