National Finance director found guilty of theft

Wednesday 27th July 2011

The former director of National Finance, which collapsed in 2006 owing investors $21 million, has been found guilty of theft.

Trevor Allan Ludlow, 52, was found guilty of six charges relating to theft by a person in a special relationship and false accounting in Auckland District Court yesterday. He had earlier pleaded guilty to one charge of theft.

Ludlow, who represented himself, was found to have breached the terms of National Finance's trust deed, defrauding investors of an estimated $3.5m.

The money included about $2.7m of unauthorised or unsecured advances made to his Payless Car group of companies; as well as undisclosed related party transactions totalling over $800,000 to an audio company; a property in Fiji; and land purchased for another company he owned.

Ludlow was the sole shareholder and a director of the finance company, which accepted deposits from the public and invested them mainly in vehicle loans, through dealers.

Judge Josephine Bouchier convicted Ludlow, who will be sentenced on August 12.

Last year, National Finance accountant John Gray, 42, was jailed for 18 months after admitting charges of theft by a person in a special relationship and false accounting. His sentence was reduced on appeal to nine months' home detention.

The charges were brought by the Serious Fraud Office (SFO), and acting director Simon McArley said Ludlow's conviction was a positive conclusion to a complex investigation.

Trust deeds played an essential role in regulating the finance industry and that apparent breaches of these requirements was a common element across a number of companies the SFO was investigating, he said.

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