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

 


Hanover court date set for July 2015

Hanover court date set for July 2015

By Suze Metherell

July 9 (BusinessDesk) - The directors and promoters of the failed Hanover Finance group of companies will have their day in court in the middle of next year, more than three years after civil proceedings were filed against them by the Financial Markets Authority.

A 12-week hearing in the High Court in Auckland will start on July 20 next year when defendants Mark Hotchin, Eric Watson, Gregory Muir, Sir Tipene O'Regan, Bruce Gordon and Dennis Broit face the regulator's claim they signed off on untrue prospectuses and misleading advertisements concerning the period between December 2007 and July 2008, during which time $35 million was deposited with the lender, according to the FMA's website.

The regulator is seeking compensation, declarations of civil liability, civil pecuniary penalties of up to $500,000 against each of the five directors and promoters, and says they each face a five-year management ban if pecuniary penalties are found.

The hearing date comes more than a year after the Serious Fraud Office completed its $1.1 million, 32-month probe into Hanover, which raised some concerns around the lender's behaviour but found nothing that crossed the threshold to warrant a criminal prosecution.

In July 2008 Hanover Finance froze $554 million of funds for its 17,000 investors after running into financial difficulties before convincing them to accept a disastrous deal where their debt was swapped for equity in Allied Farmers.

Principal Mark Hotchin's assets have been frozen since December 2010 by the FMA's predecessor, the Securities Commission, including the proceeds from his multi-million dollar mansion on Auckland's exclusive Paritai Drive.

The market watchdog has almost finished its pursuit of failed finance companies, which collapsed in the latter half of last decade, and left investors with little or nothing from their investments.

The FMA inherited 25 investigations into failed finance companies from its predecessor. Early last month the regulator settled with the board of Strategic Finance for $22 million, and is a party to the Serious Fraud Office’s ongoing case against South Canterbury Finance.

The FMA has filed criminal charges against OPI Pacific Finance, Viaduct Finance and Mutual Finance.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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