Dominion Finance directors due in court

Photo / Dean Purcell

The directors of the failed Dominion Finance Group and sister company North South Finance could be committed to stand trial as early as next month, if the court determines there is a case to answer.

Vance Arkinstall, Rick Bettle, Terry and Ann Butler, Paul Forsyth and Robert Barry Whale are facing criminal charges brought by the Securities Commission related to offer documents and advertisements it alleges were misleading.

Butler has previously said he and the other directors would strenuously defend all charges.

The case is due back in the Auckland District Court on September 8 for a post committal conference, when the Crown will provide disclosure to the court and the directors are expected to enter pleas.

It is understood all civil proceedings against the directors have been stayed while the criminal matters are dealt with.

The criminal charges carry a maximum five-year jail term or a fine of up to $300,000. The civil proceedings carry fines of up to $500,000 for each of the directors.

A Securities Commission spokesperson said if there was nothing else to consider from the next appearance, then a trial date could be set.

Dominion Finance was placed into receivership in September 2008 owing $176.9 million to around 5900 investors. Receivers expect less than 25c in the dollar to be paid back.

North South Finance went into moratorium in December 2008 and into receivership on July 8, one day after the commission announced it had pressed charges.

Bettle, who is chairman of North South Finance, said at the time that continuing the moratorium under the direction of the directors in the light of the charges was inappropriate.

Meanwhile the Investment Savings and Insurance Association says its continuing in its search for a new chief executive after Arkinstall resigned from the post last month.

"The CEO position is a key role within the ISI management structure and it is therefore important the right candidate is selected and that the process is not unduly rushed," ISI chairman Sean Carroll said.

Arkinstall said it would not be appropriate for him to continue in his role with the ISI in light of the charges.

His resignation took effect from the end of July.

- NZ HERALD