Appeal & rehearing both possible
The Crown’s application for leave to appeal to the Court of Appeal over dismissal of some securities law charges against former Reeves Moses directors Roger Moses & Gary Stevens will be heard in the Auckland High Court on Thursday 22 August.
District Court judge John Hole found during the trial a year ago there was no case to answer on charges laid under section 41 of the Securities Act contributory mortgage regulations and under section 59 of the Securities Act. At the end of the trial, Judge Hole dismissed the remaining charges, laid under section 58 of the act.
The Crown went to the High Court on a case-stated basis for a review of the dismissals , and Justice Mark O’Regan overturned the district court ruling on the section 59 charges.
The Crown is now seeking High Court leave to appeal to the Court of Appeal over dismissal of the charges laid under the regulations.
Justice O’Regan’s decision to overturn sends the section 59 charges back to the district court for rehearing. Mr Moses’ & Mr Stevens’ application to prevent that will also be heard on 22 August.
A separate prosecution was run against Reeves Moses’ mortgage manager Peter van Nieuwkoop. He was convicted in June and fined $12,000 on 4 charges. He hasn’t appealed.
All the charges related to development loans by Reeves Moses Hudig Mortgage Brokers Ltd in 1999.
Reeves Moses Hudig, one of Auckland’s busier financial advisory houses, was subsequently taken over by Sovereign Assurance, which itself became an ASB Ltd subsidiary. The advisory and mortgage firm was then sold to Brisbane-based accountancy firm Harts. After Harts collapsed, some of the business, including this part, were sold to Dorchester Pacific Ltd.
The Securities Commission decreed on Wednesday that, after changes in ownership, management and name, and 6 days after the company was placed in liquidation, Harts Contributory Mortgages Ltd (previously known as Reeves Moses Hudig Mortgage Brokers Ltd) should have new directors & brokers appointed to run it. They are David Crichton & Keiran Horne, of Crichton Horne & Associates Ltd, Christchurch.
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