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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news