INDEPENDENT NEWS

Nathans director pleads guilty to Securities Com charges

Published: Fri 4 Mar 2011 12:10 PM
Nathans director pleads guilty to Securities Commission charges
John Hotchin, a former director of Nathans Finance NZ Limited (in receivership) (‘Nathans’) has pleaded guilty to three charges laid by the Securities Commission under section 58 of the Securities Act 1978.
The charges relate to statements made by Nathans in its registered prospectus and investment statement dated 13 December 2006. The Commission alleged that statements concerning Nathans’ lending to related parties, the quality of its loan book, its loan management practices and its management of liquidity were untrue. It is also alleged that the directors made untrue statements in a prospectus extension certificate in March 2007 to the effect that the company’s financial position had not materially and adversely changed since its last balance date and had not become false or misleading.
Mr Hotchin was sentenced in the High Court today by Justice Lang to 11 months home detention, 200 hours community service and payment of reparation of $200,000.
The Judge had indicated that the starting point sentence for these breaches of the securities laws was one of 3-4 years imprisonment. In Mr Hotchin’s case, the Judge ruled the starting point was 3 years. His guilty plea, his genuine remorse, his offer of reparation of $200,000 (and the fact this will lead to his bankruptcy) and his agreement to assist the Crown in its prosecution of the matters remaining before the Court in relation to Nathans entitled him to a reduced sentence.
Commenting on the sentencing of Mr Hotchin, Commission Chairman, Jane Diplock, said, “The starting point of the sentencing in these cases – a significant term of imprisonment - delivers a clear message to all issuers as to the importance of the Securities Act’s requirements for full and truthful disclosure and the resulting impact on investors’ confidence in the securities market.”
“By setting that point at 3-4 years for these breaches, the High Court has effectively endorsed the sentencing approach taken by the District Court in relation to Five Star directors Marcus Macdonald and Nicholas Kirk in December 2010.
“In common with regulators around the world, the Commission welcomes an early plea and co-operation in cases of this nature.”
For further information about the charges laid by the Commission in relation to Nathans see http://www.seccom.govt.nz/downloads/seccom-finance-co-before-court-feb11.pdf.
Trial of the other directors is now scheduled to commence on 21 March 2011. The prosecution on behalf of the Crown will be led by Mr Colin Carruthers QC.
Ends

Next in Business, Science, and Tech

Record Dry Spells And Effects On Forests – Expert Reaction
By: Science Media Centre
Official Cash Rate Remains At 1.0 Percent
By: The Reserve Bank of New Zealand
Climate Change Throws Tree Seeding Out Of Sync – New Study
By: University of Canterbury
Novel coronavirus detected in China –Expert Reaction
By: Science Media Centre
Flooding could release toxic gas – Expert Reaction
By: Science Media Centre
More Rain For The South While Dry Continues In The North
By: MetService
Another dry week ahead, with temperatures rising
By: MetService
Auckland Set To Break Dry Spell Record
By: NIWA
Rolleston Fire
By: Fire and Emergency NZ
Farmers Fear New Water Rules Could Push Them Under
By: RNZ
The OCR Should Be Cut
By: Michael Reddell
MPS, OCR and FSR dates for 2021
By: Reserve Bank
Reserve Bank Of New Zealand Keeps Official Cash Rate At 1 Percent
By: RNZ
XE Morning Update
By: XE Morning Update
Economic Growth Slowing Under Coalition Government
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media