Intueri shares plunge 44pc on Serious Fraud investigation

Julie Read, new director of the Serious Fraud Office. Photo / Dean Purcell

The Serious Fraud Office has confirmed it is investigating Intueri Education Group.

The Auckland-based company's shares sank 35 percent after it told the NZX that one of its colleges, Quantum Education Group, is under investigation by the SFO.

The SFO told BusinessDesk it was conducting some inquiries in relation to Intueri under Part 1 of the Act. That means the SFO director, Julie Read, is able to require the release of documents when serious or complex fraud is suspected. An investigation under Part 2 of the Act is would enable the director to compel attendance at interviews.

The shares dropped 19 cents to 35 cents, having shed 24 percent so far this year. The stock plunged 74 percent in 2015, most of which occurred after its November announcement that the Tertiary Education Commission was reviewing funding at two of its schools.

Last month, the Financial Markets Authority said elements of Intueri's 2014 prospectus could have been more clearly and effectively described.

While the FMA recommended the company give further consideration to how student enrolment data is disclosed in future communications, it took no further action.