Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Crown wants stiffer sentences for Lombard directors

Crown wants home detention added to Lombard’s Graham, Jeffries, Bryant, more for Reeves

March 6 (BusinessDesk) – The Crown will argue for home detention to be imposed to the existing community service sentences of former Lombard Finance directors Sir Doug Graham, Bill Jeffries, Lawrie Bryant and a sterner sentence for executive director Michael Reeves.

Colin Carruthers QC and lawyer Dale La Hood are representing the Crown at the Court of Appeal hearing this week, which is two parts being heard concurrently – the directors appealing against their conviction and the Crown seeking tougher sentences.

The appeal over sentencing is due to be heard tomorrow but Carruthers told Justices Anthony Randerson, John Wild, and Christine French today that the Solicitor General was seeking “home detention be imposed in addition to community work.”

“That’s certainly put forward for (Graham, Jefferies and Bryant) but the Crown takes Mr Reeves’ case into a more serious category than that,” he said.

Sir Doug and Bryant each received 300 hours community service and were required to pay $100,000 each in reparation, while Jeffries and Reeves were sentenced to 400 hours community service when sentenced last year. They had been found guilty of making untrue statements in investment documents and advertisements in late 2007 and early 2008 and the Crown had initially sought jail terms.

The 4,400 Lombard Finance investors were owed $127 million at the time of the receivership in April 2008. The failed company’s major asset was a property loan book of 27 loans with a book value of $136.8 million, mostly for bare land subdivisions or development properties. Of the 27, only nine were first ranking security.

The director's lawyer, Jim Farmer QC completed his arguments today, outlining the lengths they went to in seeking advice on Lombard’s loan book and also the way the prospectus characterised the risks.

He agreed with the court that conditions in the finance sector were worse in 2007 than 2006 “but still not of the magnitude that created the sort of panic of 2008.”

In reply, Carruthers said the appellants had mounted what was “effectively a rerun of the arguments at trial which were carefully considered by the judge.”

He had argued that there had been “a disconnect” between company documents, which showed Lombard’s cash position and liquidity deteriorating, and statements in the prospectus.

“That cash trend needed to be captured in the prospectus,” he said.

The case continues for its final day on Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news