Third person charged by SFO in case over failed insurance company CBL

The firm's former chief executive Peter Harris faces several charges but has welcomed the "CBL saga" being brought before the courts. Photo / Dean Purcell

A third person has been charged by the Serious Fraud Office (SFO) after the collapse of insurance company CBL.

The firm's former chief executive Peter Harris and former chief financial officer Carden Mulholland have already been facing criminal charges for more than a year.

They had their case called in the High Court at Auckland this morning before Justice Sally Fitzgerald for what was expected to be a largely procedural hearing.

But the court heard of a new development - a third man has now been charged.

The SFO confirmed to the Herald they face a single charge of obtaining by deception.

The accused did not appear in court today but his lawyer, John Billington QC, successfully sought interim name suppression for his client.

Justice Fitzgerald said the case will be called again next week.

Harris and Mulholland were charged by the SFO in December 2019 after an investigation began in June 2018, following CBL's collapse in February that year.

When the NZX-listed insurance firm folded, it had a market value of $747 million.

Harris, 65, faces five charges of theft by a person in a special relationship, two of obtaining by deception, and false accounting.

Mulholland, 49, faces charges of theft by a person in a special relationship, obtaining by deception and false accounting.

Both men have denied all the charges against them and are on bail.

A trial has been scheduled for September this year.

Mulholland had sought continued name suppression before the legal fight came to an end in December.

Harris, however, has never sought name suppression and has seemingly embraced the criminal proceedings.

"I welcome the opportunity to finally bring the wider picture of the CBL saga before the court," the former managing director of CBL Insurance and CBL Corporation has said.

A group of civil proceedings are also running concurrently to the criminal case, including two class actions by CBL's shareholders.

Both CBL Corporation and CBL Insurance were placed into liquidation by the High Court in 2018.