Capital + Merchant trial faces delays

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The trial of the directors of failed finance company Capital + Merchant could be delayed until the end of next year or the beginning of 2012.

Owen Tallentire, Neal Nicholls, Colin Ryan, Robert Sutherland and Wayne Douglas face criminal charges for alleged breaches of the Securities Act - mainly in related party lending and loan management.

Yesterday, two of the directors, Douglas and Nicholls, appeared briefly in the Auckland District Court.

The committal hearing was adjourned until October 6 because the judge was ill.

A legal source told the Herald that because of the delay and the backlog of cases at the court, the trial would probably be scheduled for the end of next year or the beginning of 2012.

The remaining directors, Tallentire, Ryan and Sutherland, were excused from yesterday's and a following hearing scheduled for October because they live in Australia.

The commission alleges the directors made untrue claims in the company's 2006 prospectus and investment statement, and that the prospectus and advertisement distributed during 2006 were misleading. Other charges relate to various directors. If convicted the directors face five years' imprisonment or fines of up to $300,000.

Capital + Merchant collapsed in November 2007 owing 7000 investors about $167 million.