$10m settlement on Dominion Finance secured by FMA

$10m settlement on Dominion Finance secured by FMA and liquidators and receivers

The Financial Markets Authority (FMA), together with the liquidators and receivers of Dominion Finance, has reached a settlement agreement in relation to civil claims against the directors of Dominion Finance Group (DFG) and North South Finance (NSF). The agreement will see $10.235m paid to liquidators and receivers for distribution to investors.

As a result of the settlement, the FMA will discontinue its civil proceedings against the directors of DFG and NSF.

In reaching the settlement, the FMA joined with the liquidators of DFG and the receivers of NSF in negotiated settlement discussions. The directors of the collapsed finance companies failed to perform their roles as directors and did not take adequate steps to ensure they were aware of the company’s true position.

The FMA’s civil claim against the directors of DFG and NSF (Terence Butler, Ann Butler, Robert Whale, Richard Bettle, Paul Forsyth and Vance Arkinstall) was stayed in 2010 pending the outcome of the criminal proceedings against the directors. The directors were sentenced in 2013 and received varying sentences of home detention, community work and reparation payments of between $50,000 and $300,000.

DFG went into receivership in 2008, owing approximately $177 million to 5,900 investors. NSF was placed in receivership in 2010, owing approximately $31 million to 3900 investors.

ENDS

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