OPI directors sentenced to 200 hrs community work, A$100k fine for dodgy prospectus, ads
By Suze Metherell
Sept. 18 (BusinessDesk) - Mark Lacy and Jason Maywald, directors of OPI Pacific Finance, have been sentenced to 200 hours of community work and A$100,000 in reparations after pleading guilty to two Securities Act charges laid by the Financial Markets Authority.
Last month, Lacy and Maywald pleaded guilty to charges relating to a registered prospectus and an advertisement distributed in 2007, which the FMA said contained untrue statements following an investigation in 2013. The trial of the remaining defendants – former OPI directors David Anderson and Craig White - is scheduled to start on Oct. 5 in the Auckland High Court.
"In 2007 OPI offer documents contained untrue statements related to the performance and management of the business including the non-disclosure of adverse changes to the financial position of the company," FMA's acting director of enforcement and investigations Paul O'Neil said in a statement. "This prevents investors from making informed decisions about their investments by not disclosing key information about the company."
OPI provided finance to commercial property developers and investors and was tipped into receivership in September 2009 and then liquidation two years later.
More than 10,000 investors were owed about $247 million. As at July this year, investors had been repaid 30.23 cents in the dollar.