By Angela Beswick
Three former directors of Nathan’s Finance have been found guilty on five charges of breaching the Securities Act.
The Securities Commission charged director John Hotchin and three other directors; Donald Young, Kenneth Moses and Mervyn Doolan with distributing advertisements and signing prospectuses which contained untrue statements.
Young, Moses and Doolan were found guilty at the High Court in Auckland this morning following a 12 week trial.
The men – who had pleaded not guilty on the first day of the trial - were acquitted on one other charge.
Hotchin – brother of former Hanover Finance director Mark Hotchin – escaped a jail term after he agreed to give evidence against his fellow directors.
Instead he was sentenced in March to 11 months home detention and ordered to do 200 hours community work.
Judge Graham Lang also ordered Hotchin pay $200,000 to the receivers of Nathan’s Finance, which collapsed in 2007, owing $174 million to more than 7000 investors.
Judge Lang said Hotchin would get credit for his offer of payment, for showing remorse and offering to give evidence against his co-accused.
3 News
source: newshub archive
