Guilty plea in Bridgecorp trial

Bruce Davidson, chairman of failed finance company Bridgecorp, leaving Auckland District court at last yar. File photo / Sarah Ivey

Former Bridgecorp chairman Bruce Davidson has been sentenced to nine months home detention for misleading investors in a number of the failed finance company's offer documents.

Davidson was also ordered to pay $500,000 in reparations which will be distributed amongst certain investors.

He was also sentenced to 200 hours of community work.

The sentence followed Davidson's guilty plea to 10 charges under the Securities Act relating to misleading statements made in investment documents.

Justice Pamela Andrews acknowledged that Davidson genuinely believed the investment statements were true but should have known there were issues with the company's financial health.

Justice Andrews said that Davidson's recognised good character and guilty plea were the mitigating factors in the sentencing.

The trial of his fellow directors, including Rod Petricevic, is set down to begin on October 25. They have entered not guilty pleas.

The Financial Markets Authority charges allege Petricevic and the other former directors misled investors about Bridgecorp's financial health. Bridgecorp collapsed in 2007 owing $459 million to 14,000 investors.

An adjournment to the trial was granted by Justice Geoffrey Venning in the High Court on Wednesday. There have been three prior adjournments in the case - all relating to issues of legal representation and applications for legal aid.

Company founder and former chief executive Petricevic was due to be represent himself in the trial, but will now be represented by lawyer Charles Cato.

Petricevic had previously said he could not fund his own case and made a number of attempts to secure legal aid. Cato today said he was not being funded by legal aid in this case.

The late October start date for the trial means it may carry on into the new year.

Rod Petricevic and fellow director Rob Roest also face Serious Fraud Office charges relating to alleged transactions they were involved in while directors of Bridgecorp.

Both have pleaded not guilty and this case is expected to go to trial next year.