Wife must pay fortune back

Neill Williams. Photo / Steven McNicholl

The wife of a failed finance company boss who was paid tens of thousands of dollars in cheques signed by her husband, has been ordered to pay back $650,000 to liquidators.

Jeanne Shirley Williams received "camouflaged" payments from Five Star Finance Limited, which went into receivership in 2007, owing millions to Kiwi investors.

Her husband Neill Williams, who was a de facto director with Five Star, is one of four former bosses facing charges over false and misleading claims made in their 2006 prospectus.

The Auckland High Court ordered the wife to repay $505,000 plus interest, taking the amount owed to more than $650,000.

Joint liquidator Paul Sargison said Neill Williams had signed several of the cheques made out to his wife in amounts of $15,000 and $20,000. Other deposits were made directly into her bank account between July 2003 and August 2007.

Jeanne Williams claimed the payments were for shares she owned in another related company, Sargison said .

"The court found there was no arrangement whereby Five Star Finance would pay Jeanne Williams for the shares in the company," he said.

The payments were "camouflaged" in the Five Star books, and in some cases charged to a non-existent company.

Sargison said a demand for the money had not yet been served, and it was not known whether she was able to pay.

"She maintains she spent all the money on overseas trips," he said.

Speaking from her home in Dannemora, east Auckland, Jeanne Williams said: "I'm not saying anything to you. I only talk to judges and courts."

The home, which has a valuation of $540,000, has been placed on the market.

Liquidators are also trying to recover $6.4 million from the four directors of Five Star Finance: Williams, Anthony Bowden, Nicholas Kirk and Marcus MacDonald.

The case relates to $2 million of bad debts bought from another company in the Five Star group, and advances of approximately $4m to Bowden Limited, a company owned by Kirk and MacDonald.

The directors also face civil action relating to other companies in the collapsed Five Star group, and charges brought by the Companies Office.

The Serious Fraud Office is reviewing company files to determine whether charges could be laid.