Media Release

28 November 2013

SFO close NZF investigation

The Serious Fraud Office (SFO) confirmed today that an investigation into NZF Money Limited, and other related companies, has been closed.

NZF Money traded as a finance company and primarily provided commercial and residential loans. On 22 July 2011, the company was placed into receivership owing debenture holders approximately $16.4 million.

The SFO’s investigation raised a number of questions relating to:

The adequacy of disclosure in NZF Money’s prospectuses;
The propriety of the sale by NZF Money of NZF Homeloans Limited to NZF Group Limited;
The accuracy of the valuation of NZF Money’s assets in the 2010 and 2011 financial statements.

Following a thorough analysis of all material obtained in relation to alleged suspicious transactions between members of the group, its directors and officers, the SFO determined that a Crimes Act prosecution could not be supported.

SFO Director, Julie Read said, “Despite questions being raised, our analysis has not disclosed sufficient evidence to bring a prosecution. However, we will be referring the matter to the Financial Markets Authority so that they may use the information obtained by the SFO in the course of their inquiry.”

Julie Read said the SFO remains open to reconsider its decision if fresh evidence as to the actual knowledge and intent of those in control of the company becomes available.

The SFO acknowledge the assistance already received from FMA throughout the investigation, and will continue to provide information and assist them with their inquiries.

ENDS

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