1 October 2013

Another Gisborne finance company guilty plea

John Patrick Gardner (60), a former director of Rockforte Finance Limited (Rockforte), has entered a guilty plea in the Gisborne High Court today. The plea relates to five Crimes Act charges laid by the Serious Fraud Office (SFO).

Mr Gardner is the second of three directors to plead to charges in this prosecution. The charges relate to theft by person in special relationship, obtaining by deception, and false statement by promoter. The false reporting lead to the acceptance of Rockforte into the Crown Retail Deposit Guarantee Scheme.

Acting SFO Chief Executive, Simon McArely said, “As the tail of finance company prosecutions draws to an end we need to remain aware of the threat financial crime poses to our economy. SFO’s proactive early intervention strategy aims to apply our capability and resources to minimising the impact of the next ‘finance company-type’ disaster, rather than reacting to it.”

SFO laid a number of criminal charges against the three directors of the failed Gisborne finance company in January 2012.

The charges carry maximum sentences of between seven and ten years’ imprisonment.

The final defendant, Nigel Brent O’Leary (31 charges) is scheduled to face trial, commencing 2 October.

SFO allege that a significant portion of investors’ money was used as a source of funding for the directors’ personal business interests in two companies - Gisborne Haulage and Michael Ward 1969 Ltd, which operated the Jean Jones label throughout New Zealand.

Investor losses amounted to $3.86 million.

ENDS

© Scoop Media