Last OPI director to pay $110,000

  • 25/09/2015
Last OPI director to pay $110,000

The fourth and final director of a collapsed finance company that left investors nearly $250 million in the red has been slapped with a six-figure reparation bill and sentenced to community service

David Anderson, a former director of OPI, was sentenced in Auckland's High Court on Friday to 300 hours of community service and ordered to pay AU$100,000 (NZ$110,708) for misleading investors.

He was the last director to plead guilty to two counts of misleading investors, receiving the longest period of community service.

Co-director Craig White was sentenced to 250 hours on Wednesday, and Mark Lacy and Jason Maywald were given 200 hours last week.

The Financial Markets Authority investigated OPI in 2013 over statements in a prospectus it said misrepresented the company's health by failing to disclose the effect of a $A100m advance it had made to an Australian finance company in the same group, MFS Pacific Investments Pty Limited, which failed shortly after.

It was tipped into receivership in 2009 and then liquidation two years later, owing 10,000 investors about $247 million.

As at July, investors had been repaid 30.23 cents in the dollar.

The FMA's acting enforcement and investigations director Paul O'Neil said Friday's sentencing brings the case to a close after nearly two years.

"The four guilty pleas and convictions show that each of the directors have accepted responsibility for their failure to fulfil their disclosure obligations to investors," he said.

"These criminal convictions send a strong message to issuers of securities in New Zealand that this type of misconduct will be held to account."

Anderson, Lacy, Maywald and White - who are all based in Australia - will need to return to New Zealand to serve their sentences later in the year.

All four men are banned from taking on management positions of any company in New Zealand for five years.

NZN