Published 5 October 2008
The Companies Office has laid criminal charges against National Finance 2000 Ltd’s directors, Allan Ludlow, Tony Banbrook & Carol Braithwaite. They’re due to appear in the Auckland District Court on Thursday 23 October.
Registrar of Companies Neville Harris said on Friday: “The charges relate to untrue statements in the company’s registered prospectus and failure to comply with financial reporting standards.”
The National Enforcement Unit of the Companies Office is conducting the prosecution. Mr Harris said the unit was also liaising closely with the Serious Fraud Office, which is conducting its own investigation into National Finance 2000.
Colin McCloy & John Waller (PWC) were appointed receivers of National Finance 2000 & 5 other companies in Mr Ludlow’s Payless Cars group in May 2006. The receivers sold the loan book to Cynotech Holdings Ltd (chairman Allan Hawkins) in October 2006.
National Finance 2000 was placed in voluntary liquidation on 22 July, with Bernie Montgomerie & Stuart Cunningham (Montgomerie & Associates) appointed. That voluntary appointment was invalidated on 1 August under new timing rules, but the High Court appointed the same liquidators on Inland Revenue’s application to wind the company up.
In their fifth report, in July, the receivers said they’d paid secured debenture investors 40% of their $21.8 million and estimated another 7-8% would be recovered. Subordinated investors owed $3 million, and other unsecured creditors, won’t get anything back.
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Attribution: Companies Office release, story written by Bob Dey for the Bob Dey Property Report.