6 August 2013

SFO withdraws one South Canterbury Finance charge

The Serious Fraud Office today announced it was withdrawing a charge of false accounting previously laid against the former Chief Financial Officer of South Canterbury Finance Limited, Graeme Brown.

The charge was withdrawn prior to the appearance of the remaining defendants and commencement of a pre-trial hearing this morning in the Timaru High Court.

SFO Acting Chief Executive Simon McArley said the decision to withdraw the charge against Mr Brown – the only one he was facing in relation to the South Canterbury Finance investigation – followed submissions received on behalf of Mr Brown, reassessment of the evidence held and additional witness interviews.

“We continually review the charges we are bringing to trial to ensure they remain appropriate,” Mr McArley said. “I am acutely conscious that we must continually assess whether the charges we are prosecuting remain both fair and in the public interest. In this case a combination of factors, including clarification of existing evidence, meant that I was no longer satisfied that the available evidence supported this charge to the standard required.”

The trial of the remaining defendants has been set down for 12 March 2014.

In December 2011 the SFO laid 21 charges following a 12-month investigation into the affairs of South Canterbury Finance. The charges alleged offences under the Crimes Act 1961 including: theft by a person in a special relationship; obtaining by deception; false statements by the promoter of a company; and false accounting. The offences carry maximum penalties of between seven and 10 years’ imprisonment.

ENDS

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