By Simon Shepherd
Three directors of failed finance company Nathans Finance have been found guilty of misleading investors.
The company went under owing $174 million to more than 5000 investors.
The judge said that when it comes to sentencing the men he wants to know what assets they have. Justice Heath agreed - the directors thought they acted honestly. But that didn’t stop Roger Moses, Donald Young and Mervyn Doolan being convicted.
In the year before the company went under owing millions of dollars, the three directors approved advertisements and a prospectus that did not reveal Nathans’ true financial situation.
“On the information available to all three directors at relevant times, the directors should have realised that the statements were misleading,” said Justice Heath.
The eight week case is the first of its type heard by the High Court.
The newly formed Financial Markets Authority believes the decision sends a strong message.
“We are saying to directors; you do have to take accountability for your decisions you have to take responsibility for what you tell investors about your company.”
The authority is signalling a tough approach with new adverts and new regulations for financial advisers.
“We hope this decision will send a message that we are policing.”
The convicted Nathans Finance directors face maximum fines of $300,000 or five years jail.
But Justice Heath also indicated that reparation, paying back some money, will be an important part of sentencing.
“I prefer counsel to discuss amongst themselves a way of getting information for the court in respect of assets which the accused have.”
All three directors have had to surrender their passports until sentencing in September.
3 News
source: newshub archive
