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: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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