Charges dropped in case of Mutual Finance's 'missing millions'

(Newshub.)
(Newshub.)

A third of the charges against the directors of failed finance company Mutual Finance have been dropped in the Auckland High Court.

The case is seven weeks into its expected running length of six months and is still hearing from the first witness.

However, at this point Crown prosecutors have asked that 12 of the 49 charges against Paul Bublitz and his co-accused be discharged.

Bublitz, along with Bruce McKay, Richard Blackwood and Lance Morrison, are accused of buying and operating finance companies to support Hunter Capital - a portfolio of property investments owned by Bublitz. 

Mutual Finance and Viaduct Capital went into receivership in 2010, owing investors a total of $17 million.

The Crown says the defendants deliberately misled some investors by not saying some transactions were for their own benefit rather than the benefit of the finance company.

The Financial Markets Authority filed charges in March 2014.

Eleven of the dropped charges are theft by a person in a special relationship, in relation to Mutual Finance Limited.

The other charge dropped is the allegation of making a false statement to a trustee in relation to Viaduct Capital.

In respect of the dropped charges Crown prosecutors David Johnstone said, "The Crown, having reflected on its case, seeks to offer no further evidence."

Newshub.
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