FMA, liquidators cut deal with Dominion Finance directors

FMA, liquidators cut $10.2M deal with Dominion Finance and North South Finance directors

By Fiona Rotherham

June 8 (BusinessDesk) - The Financial Markets Authority and the liquidators and receivers of failed finance company, Dominion Finance, have reached a $10.235 million settlement in relation to civil claims against the directors of the group and its subsidiary North South Finance (NSF), which will see the fund go back to investors.

As part of the deal, the FMA will end its civil proceedings against both defunct companies' directors - Ann Butler, Robert Whale, Richard Bettle, Paul Forsyth and Vance Arkinstall. Former Dominion Finance boss Terry Butler avoided trial over the collapse of the finance company due to the onset of cancer and died in 2013.

The FMA said the directors failed to perform their roles 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 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.

Dominion Finance was also the subject of a Serious Fraud Office investigation that led to the conviction of its chief executive Paul Cropp in 2013.

Dominion Finance went into receivership in 2008, owing approximately $177 million to 5,900 investors. NSF defaulted on its debts in 2008 and was placed in receivership in 2010. It went into a moratorium owing $102 million and still owes $31 million to 3900 debenture investors after repaying 65 cents in the dollar.

(BusinessDesk)

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