Finance directors receive increased prison sentences
28 June 2013
Capital + Merchant Finance directors receive increased prison sentences
Two former directors of Capital + Merchant Finance have today had their prison sentences increased following a prosecution taken by the Financial Markets Authority.
Wayne Douglas and Neal Nicholls, who pleaded guilty to Securities Act charges of making untrue statements in a registered prospectus, were today sentenced in the Auckland High Court.
Mr Douglas was sentenced to eight months’ imprisonment and Mr Nicholls was sentenced to 12 months’ imprisonment. This is on top of the seven and a half years’ imprisonment they are currently serving for fraud following a prosecution taken by the SFO.
FMA Head of Enforcement, Belinda Moffat, said she hoped today’s sentencing would act as a deterrent to others.
“Wayne Douglas and Neal Nicholls misled the public to get them to invest in Capital + Merchant Finance,” said Ms Moffat.
“If investors had known what was really going on, it is unlikely they would have invested at all. The offending has had a grave impact on investors both financially and emotionally.”
Capital + Merchant Finance (in receivership and liquidation) owed $167 million to approximately 7500 investors when it was placed in receivership in November 2007.