7 June 2013

Director sentenced to prison term for theft and false statements

Stephen Charles Smith (45), a former director of failed finance company Belgrave Finance Limited (Belgrave Finance), has today been sentenced to four years’ imprisonment. The sentence follows a joint prosecution by the Financial Markets Authority (FMA) and the Serious Fraud Office (SFO).

In April, Mr Smith pleaded guilty to 19 Crimes Act charges of theft by person in a special relationship, four charges of false statement by promoter, one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee. He was sentenced at the Auckland High Court.

The charges relate to more than $18 million of transactions made by Belgrave Finance for the benefit of various related entities between June 2005 and March 2008.

FMA Head of Enforcement, Belinda Moffat said, “Today’s sentence is a reminder to directors that they cannot depart from their obligations under the law, and their duty to investors.”

Acting SFO Chief Executive added, “This sentencing brings us another step closer to bringing the criminal prosecution of the Finance Company collapses to a close. This will increasingly allow resources to be refocused toward proactive intervention in emerging areas of financial crime.”

Belinda Moffat and Simon McArley said the joint prosecution demonstrated the efficiencies that were being achieved from the close working relationship between the two agencies.

"The combination of our specialist skills has enabled this prosecution to be progressed quickly and efficiently and without duplication of resource" said Simon McArley.

Under the Companies Act, Stephen Smith’s conviction means he is automatically banned from managing companies for five years.

ENDS

© Scoop Media