Lombard Finance & Investments Ltd In Receivership

Lombard Finance & Investments Ltd In Receivership

The former chairman of Lombard Finance, the Rt Hon Sir Douglas Graham, responded today to the civil and criminal proceedings under the Securities Act brought by the Securities Commission against the four directors.

“The case in the main relates to a prospectus filed in December 2007. The Securities Commission alleges that the prospectus did not adequately disclose the impact the credit crisis had had in the previous 9 months on the company’s borrowers and therefore in turn on Lombard Finance” Sir Douglas said.

“The Commission believes investors who relied on the prospectus may have been misled” he said.

Sir Douglas said that in the 3 months between the prospectus and the receivership the company received about $8.5m in deposits but how many investors had relied on the prospectus is unknown.

“The directors do not accept the allegations of the Commission and will be defending all the proceedings’ Sir Douglas added.

“The prospectus was prepared by management, commented on by the auditors and solicitors and then accepted by the Companies Office. The document was sent to the Trustee. None of these advised the Board of any concerns with the final wording” he said.

“Finally I must record my dismay that it has taken 2½ years to make the allegations and very disappointed the Commission has never raised with me any concerns it had over the prospectus prior to filing proceedings” he concluded.

Sir Douglas said that as the matter was now before the Courts he would not be making any further comment.

ENDS

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