Three directors of New Zealand’s National Finance 2000, which collapsed in May 2006, will face criminal charges carrying potential penalties of up to five years in prison. The New Zealand Herald reports that the directors — Trevor Allan Ludlow, Anthony David Banbrook and Carol Anne Braithwaite — would face charges in the Auckland District Court “relating to untrue statements in the company’s registered prospectus and failure to comply with financial reporting standards.” The defendants are due to appear on October 23.
The New Zealand Companies Office alleges that the directors failed to disclose material transactions between National Finance 2000 and related parties. The Herald also reports that the directors are charged under the Securities Act “for stating that they had made proper and adequate provisioning for bad debts and that loans were secured by general security agreements when this was not the case.”
National Finance 2000 collapsed in May 2006 owing a reported $25.5 million to 2026 investors.
