Finance director sentencing delayed again

National Finance former director Anthony David Banbrook appeared in the High Court at Auckland today. Photo / Greg Bowker

A former director of a failed finance company has had his sentencing for misleading investors delayed for a second time.

Former National Finance director Anthony David Banbrook appeared in the High Court at Auckland today after earlier pleading guilty to a charge of signing a company prospectus which included untrue statements.

The charge, laid by the Financial Markets Authority, carries a maximum penalty of five years in prison or fines of up to $300,000.

Sentencing was set down for today at the High Court in Auckland.

However, the case will now go to a disputed facts hearing after Banbrook's lawyer Harry Waalken QC raised objections to several points in a summary of facts previously agreed by his client.

Waalken said Banbrook did not know about related party loans associated with the collapse of National Finance because they were hidden from him by fellow director Trevor Ludlow, who is serving a six year and four month sentence on charges brought against him by the Serious Fraud Office.

Banbrook was only guilty of being negligent, rather than "grossly negligent" in his duties as a director, Waalken said.

The Crown said Banbrook did know about the loans and he had been grossly negligent.

Justice Tim Brewer set the case down for a three to five day disputed facts hearing at a date agreed on by counsel.

National Finance collapsed in 2006 with $21 million still owing to investors.

Some investors have been able to recover 49c on the dollar.