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

 

SFO charges Capital + Merchant founders Nicholls, Douglas

SFO arrests, charges Capital + Merchant founders Nicholls, Douglas

By Paul McBeth

Dec. 9 (BusinessDesk) – The Serious Fraud Office has arrested and charged the founders of Capital + Merchant Finance Ltd. alleging misuse of funds raised to develop property in Palmerston North.

In its second swoop today, the white collar crime investigator charged director Neal Nicholls and former director Wayne Douglas with misusing some $14.5 million of funds raised to convert two Palmerston North office blocks into student accommodation. The charges relate to one set of transactions, and the SFO is continuing to look at other deals done by the lender that once sponsored TV One news.

“While we have completed investigations into these matters, the SFO is continuing to investigate a number of other transactions that are of serious concern to us,” chief executive Adam Feeley said in a statement. “This investigation and the subsequent charges demonstrate the speed with which the SFO can act, even where the case is one of significant complexity and involves many millions of dollars.”

The SFO was called in to probe the lender’s books in March by first receiver Grant Thornton, which is acting for prior ranked creditor Fortress Credit. The Capital + Merchant group of companies called in the receivers in November 2007 owing some 7,000 investors about $167.1 million, and was put into liquidation in December last year.

Nicholls, along with other C+MF directors Owen Tallentire, Colin Ryan, and Robert Sutherland face criminal charges and civil proceedings from the Securities Commission over the way they promoted their debenture stock to investors. Douglas only faces criminal charges from the commission.

The SFO has laid criminal charges against people involved in a number of well-publicised finance company failures, including National Finance, Bridgecorp, Five Star Finance.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>