Thursday 29th March 2012 |
Text too small? |
The Crown is seeking a custodial sentence for the directors of failed lender Lombard Finance and Investments while the defence is arguing that community service or a fine is more appropriate.
Crown prosecutor Colin Carruthers QC told the High Court in Wellington that a starting point of 2 years to 2 ½ years was appropriate for non-executive directors Douglas Graham, Lawrence Bryant and Bill Jeffries.
For former chief executive Michael Reeves, Carruthers said 2 years and 9 months was an appropriate starting point.
Paul Davidson QC, council for Graham and Bryant, told the court a sentence of community service or a pecuniary penalty was appropriate for the directors given the lack of dishonesty in their actions.
Judge Robert Dobson is hearing mitigating factors from council today as he prepares to deliver a sentence after finding them guilty making misleading statements in offer documents a month ago.
At the time of the verdict, Judge Dobson said the directors’ offences were a “material step away from the seriousness required for a custodial sentence” and that the law created “criminal liability for what may be no more than a material misjudgement about the accuracy and adequacy of the description of the state of financial health of the company, as directors authorise it in offer documents.”
Lombard Finance went into receivership in April 2008, owing approximately $127 million to about 4,400 investors.
(BusinessDesk)
BusinessDesk.co.nz
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes