Former Datasouth Group (Datasouth) director, Gavin Clifford Bennett (53), today pleaded guilty to charges brought by the Serious Fraud (SFO) Office relating to a $103 million fraud involving a Ponzi-style scheme.

Mr Bennett was convicted on six representative charges under the Crimes Act relating to approximately 900 separate incidents of dishonestly using a document, and a further two charges of false accounting.

SFO Chief Executive, Adam Feeley, welcomed the guilty plea saying, “The collapse of Datasouth was a significant event in the Christchurch business community and caused widespread losses. Mr Bennett’s guilty plea brings to a satisfactory end one of SFO’s largest investigations in recent times.”

The Datasouth Group offered technology hardware for lease through DataSouth Business Solutions Limited, and provided finance for the technology leasing solutions through DataSouth Finance Limited.

The SFO alleged that between April 2005 and March 2011 Mr Bennett created false documents relating to the lease of IT equipment to fraudulently obtain funds from South Canterbury Finance totalling approximately $65 million.

It was further alleged that Bennett falsified entries in Datasouth Finance financial statements by an estimated $38 million in order to retain the ongoing finance facility.

Mr Bennett used the dishonestly obtained funds to repay earlier false lease agreements in a manner similar to a Ponzi scheme.

Loan funds were also applied to meet business expenses and personal expenses.

Between April 2005 and March 2011 a total of approximately $7.8 million was paid either to personal New Zealand and Australian bank accounts controlled by Mr Bennett or applied to business credit cards that Mr Bennett used for personal expenses, though a small portion of that amount was used for genuine business expenses.

Significant areas of personal expenditure by Mr Bennett include:
• the rental for two luxury residential apartments in the Rocks, Sydney (A$463k);
• Regular payments to various female companions totalling (A$900k);
• Food and beverages (A$429k), a significant amount of which was spent at Hemmesphere bar and restaurant Sydney);
• International air travel for Bennett and on occasions various companions totalling (A$161k) including to Argentina, New York, Hong Kong, Las Vegas, New Caledonia, Rio de Janerio, San Francisco, Paris and London;
• Jewellery and flowers (including purchases at Tiffany & Co) (A$16k);
• Corporate car taxi expenses (A$53k); and
• Clothes and apparel (including purchases at Louis Vuitton, Cartier, Chanel, Giorgio Armani, Barney’s and Bloomingdales New York, Victoria’s Secret, Paul Smith, Gucci, Jimmy Choo, Harrods London) (A$163k).

The resulting financial loss to South Canterbury Finance was at least $23 million.

Datasouth went into liquidation in March 2011, leaving all 31 staff without employment.

Mr Bennett was remanded in custody for sentencing on 3 May 2012.

For further information

Andrea Linton
Serious Fraud Office
027 705 4550

Background to investigation

In the mid-1990s Mr Bennett established a business which came to be known as the Datasouth Group. It was made up of a number of companies, including Datasouth Finance Limited (Datasouth Finance). The Datasouth Group of companies was owned by Mr Bennett alone.

The group was based in Christchurch and provided a variety of IT related services, including network design and integration; data management solutions; consultancy; and hardware leasing. The latter was the area of focus for the SFO’s investigation.

Customers of the Datasouth Group wishing to lease IT equipment would enter into a “Hire Agreement” with Datasouth Finance to acquire specific equipment. The purchase of the equipment to be leased was then financed by South Canterbury Finance Limited (South Canterbury Finance) and was arranged pursuant to a finance agreement between Datasouth Finance and South Canterbury Finance.

Mr Bennett falsified agreements between Datasouth Finance and its customers, and then presented these, as if genuine, to South Canterbury Finance in order to secure funding.

In addition, Mr Bennett prepared and submitted false financial statements to South Canterbury Finance in order to retain the on-going finance facility.

What is a Ponzi Scheme?

A Ponzi scheme is typically an investment fraud that involves the payment of purported returns to existing investors from funds that have been contributed by new investors, rather than genuine returns from the investment scheme.

In a lending scenario, it involves soliciting new, larger loans from new or existing funding sources to pay off earlier loans that have fallen due, along with using a portion of the funds for personal expenses.

Crimes Act Offences

Section 228: Dishonestly taking or using document
Every one is liable to imprisonment for a term not exceeding 7 years who, with intent to obtain any property, service, pecuniary advantage, or valuable consideration,-
(a) dishonestly and without claim of right, takes or obtains any document; or
(b) dishonestly and without claim of right, uses or attempts to use any document.

Section 260: False Accounting
Every one is liable to imprisonment for a term not exceeding 10 years who, with intent to obtain by deception any property, privilege, service, pecuniary advantage, benefit, or valuable consideration, or to deceive or cause loss to any other person,-
(a) makes or causes to be made, or concurs in the making of, any false entry in any book or account or other document required or used for accounting purposes; or
(b) omits or causes to be omitted, or concurs in the omission of, any material particular from any such book or account or other document; or
(c) makes any transfer of any interest in a stock, debenture, or debt in the name of any person other than the owner of that interest.

Source: Serious Fraud Office Media Release

Fraudster, Shaan Stevens’, serving home detention in his multimillion-dollar mansion sent out invitations to a “convicts and tarts” 50th birthday bash, angering one of his victims, who is still waiting for reparation.

Read the full article on line >>> NZ Herald – nzherald.co.nz

Chartered accountant, Mark Joseph Benjamin, who was convicted of seven fraud charges and sentenced to 200 hours of community work in December last year for fiddling the books to increase his six-figure salary has lost an appeal against his conviction.

Read the full article on line >>> stuff.co.nz

A High Court judge has reserved his decision whether the New Plymouth man, James Marriner, who ripped off a city car dealer should pay reparation and serve his sentence at home rather than in jail.

Read the full article on line >>> Taranaki Daily News Online

Tax evasion totalling $435,000 led to a jail term of two years eight months being imposed on Christchurch company owner Daryl Philip Evans today.

Read the full article on line >>> NZ Herald – nzherald.co.nz

Former National Finance boss Trevor Allan Ludlow has had nine months added to his prison sentence for misleading investors and making false financial statements.

Read the full article on line >>> NZ Herald – nzherald.co.nz

New Zealand Companies Office, National Enforcement Unit, convictions obtained during the 2011 year. (Listed alphabetically by last name or company name.)

Gary Donald Ashley Convicted under:
Section 382(1) (b) of the Companies Act 1993 for managing a business while prohibited.
Section 385 of the Companies Act 1993 for being a prohibited Director and being involved in the management of a company.
Section 436 (1) (b) (2 charges) of the Insolvency Act 2006 for taking part in the management of a business whilst being an undischarged bankrupt.
Sentenced on 7 April 2011 to two months’ community detention and 175 hours community work.

Donald John Baker Convicted under:
Section 433(1)(a) of the Insolvency Act 2006 for failing to notify the Official Assignee of a change in address
Section 433(1)(c) of the Insolvency Act 2006 for wilfully misleading the Official Assignee
Section 420(2)(a) (two charges) of the Insolvency Act 2006 for concealing property.
Sentenced on 1 July 2011 to six months home detention and 150 hours community service.

Malcolm William Brown Convicted under:
Section 128A (1)(b) of the Insolvency Act 1967 for managing a business
Section 436(1) (b) of the Insolvency Act 2006 for managing a business
Section 382(1) (b) of the Companies Act 1993 for being a prohibited director
Sentenced on 2 September 2011 to four months home detention on each charge to run concurrently, plus reparation to the amount of $5882.93.

Stephen Peter Crow Convicted under:
Section 385 of the Companies Act 1993 for being a prohibited Director and being involved in the management of a company.
Sentenced on 24 May 2011 to a fine of $5000.00 plus court costs of $132.89.

Alex Dittmer Convicted under:
Section 433(1)(a) (2 charges) of the Insolvency Act 2006 for failing to appear before the Official Assignee and failing to complete a statement of affairs.
Sentenced on 1 August 2011 to 40 hours community service on each charge to be served concurrently.

Bronwyn Dittmer Convicted under:
Section 433(1)(a) (2 charges) of the Insolvency Act 2006 for failing to appear before the Official Assignee and failing to complete a statement of affairs.
Sentenced on 1 August 2011 to a conviction and discharged.

Emil Drago Filipchich Convicted under:
Section 433(1) (a) of the Insolvency Act 2006 for failing to inform the Official Assignee of a change in address.
Section 433(1) (a) (3 charges) of the Insolvency Act 2006 for failing to inform the Official Assignee of a change in employment.
Section 436(1) (b) of the Insolvency Act 2006 for carrying on in the management or control of a business.
Section 436(1) (b) of the Insolvency Act 2006 for being employed by a relative.
Sentenced on 25 January 2011 to 150 hour’s community service.

Jalendra Mani Gounder Convicted under:
Section 436(1) (b) of the Insolvency Act 2006 for carrying on in the management or control of a business.
Section 436(1) (b) of the Insolvency Act 2006 for being employed by a relative.
Sentenced on 19 April 2011 to 40 hour’s community service, NZ$132.89 court costs and NZ$300 solicitors fees.

Martin Roy Hawke Convicted under:
Section 159(1)(b) of the Companies Act 1993 for failing to notify the Registrar of a change in address
Section 214(1) of the Companies Act 1993 for failing to deliver an annual report
Section 214(2) of the Companies Act 1993 for premature filing of annual returns
Section 377(1)(a) of the Companies Act 1993 for making a false statement.
Sentenced on 21 July 2011 to a fine of $1500.00.

HD Finance Limited Convicted under:
Regulation 12 of the Securities Act (Contributory Mortgage) Regulations 1988 for failing to file an annual report.
Sentenced on 10 May 2011 to a fine of NZ$400.00 plus court costs of NZ$132.89.

David Hughey Convicted under:
Section 128A (1) (b) (3 charges) of the Insolvency Act 1967 for managing a business whilst being an undischarged bankrupt.
Section 436(1) (b) (2 charges) of the Insolvency Act 2006 for taking part in the management of a business whilst being an undischarged bankrupt.
Sentenced on 24 March 2011 to 350 hour’s community service.

Joung Oh Lee Convicted under:
Section 273(2) of the Companies Act 1993 for concealing property
Section 261(6A) of the Companies Act 1993 for failing to comply with a written notice
Section 274(2) of the Companies Act 1993 for failing to deliver property to the liquidator.
Sentenced on 23 August 2011 to a fine of $250.00 on each charge plus court costs of $132.89 total amount of $1148.67.

Neil Malcolm Livingston Convicted under:
Section 436(1)(b) under the Insolvency Act 2006 for carrying on in the management or control of a business
Sentenced on 22 March 2011 to a fine of NZ$1500.00 plus court costs of NZ$132.89 and solicitors fees of NZ$250.00.

Warren Eric Lynch Convicted under:
Section 113 of the Radiocommunications Act 1989 for transmitting radio waves without a licence
Section 128 of the Radiocommunications Act 1989 for selling equipment that has been declared prohibited.
Sentenced on 7 June 2011 to a fine of $2000.00 and court costs of $132.89.

Andrew Stuart Mackie Convicted under:
Section 37 of the Radiocommunications Regulations 2011 for selling interfering equipment
Section 132 of the Radiocommunications Act 1989 for supplying restricted radio apparatus.
Sentenced on 7 September 2011 to a $600.00 fine plus court costs of $132.89 and convicted and discharged on the Section 132 charge.

Janice Mackie Convicted under:
Section 37 of the Radiocommunications Regulations 2011 for selling interfering equipment
Section 132 of the Radiocommunications Act 1989 for supplying restricted radio apparatus.
Sentenced on 7 September 2011 to a $300.00 fine plus court costs of $132.89 and convicted and discharged on the Section 132 charge.

David Lawrence Marsters Convicted under:
Section 128(1)(a) of the Insolvency Act 1967 for failing to notify the Official Assignee of change of name.
Sentenced on 23 August 2011 to a conviction and ordered to come up for sentence if called upon, within the next 12 months.

Daniel Middleton Convicted under:
Section 377 (1) (a) of the Companies Act 1993 for making a false statement.
Section 382(1) (b) of the Companies Act 1993 for acting as a directory whilst being prohibited by virtue of being convicted of a crime of dishonesty.
Sentenced on 11 March 2011 to 50 hour’s community service.

Midland Funds Management Limited Convicted under:
Regulation 12 of the Securities Act (Contributory Mortgage) Regulations 1988 for failing to file an annual report.
Sentenced on 2 May 2011 to a fine of $500.00 plus court costs of $132.89

Craig Grant Scott Nisbet Convicted under:
Section 433(1)(g)(i) of the Insolvency Act 2006 for obtaining credit while bankrupt
Section 436(1)(a) (5 charges) of the Insolvency Act 2006 for acting as a director of a company.
Sentenced on 19 August 2011 to a conviction and discharged.

Stephen John Papps Convicted under:
Section 436(1) (b) of the Insolvency Act 2006 for carrying on in the management or control of a business.
Sentenced on 11 May 2011 to a fine of NZ$800.00 plus court costs of NZ$132.89.

Philip Noel Pedlar Convicted under:
Section 126(g) of the Insolvency Act 1967 for concealing assets
Section 436(1)(b) of the Insolvency Act 2006 for carrying on in the management or control of a business
Section 128A(1)(b) of the Insolvency Act 1967 for carrying on in the management or control of a business
Section 381 of the Companies Act 1993 for the improper use of the word Limited.
Sentenced on 30 May 2011 to 400 hours community service.

Graeme Pillidge Convicted under:
Section 433(1)(c) of the Insolvency Act 2006 for wilfully misleading the Official Assignee
Section 436(1)(b) of the Insolvency Act 2006 for managing a business.
Sentenced on 18 August 2011 to three months imprisonment.

Andrew Richard Russell Convicted under:
Section 159(1) of the Companies Act 1993 for failing to notify the Registrar of Companies that a Director ceased to hold office.
Sentenced on 12 May 2011 to a conviction and discharged.

Brian Joseph Scandlyn Convicted under:
Section 382(1) (b) of the Companies Act 1993 for managing a company whilst being prohibited.
Sentenced on 5 April 2011 to a conviction and discharged, ordered to pay solicitors fees of NZ$115.50.

Vijay Sen Sethi Convicted under:
Section 382(1) (b) (Two charges) of the Companies Act 1993 for being prohibited from managing a company or being a director.
Sentenced on 24 May 2011 to a fine of $500.

Graham John Strang Convicted under:
Section 433(1) (g) (i) of the Insolvency Act 1967 for obtaining credit.
Sentenced on 5 April 2011 to 80 hour’s community service.

Phillip Raymond Telfer Convicted under:
Section 377 (1) (a) of the Companies Act 1993 for making a false statement.
Section 382(1) (b) of the Companies Act 1993 for acting as a directory whilst being prohibited by virtue of being convicted of a crime of dishonesty.
Sentenced on 11 March 2011 to 50 hour’s community service.

Mowat Earle Gray Ussher Convicted under:
Section 59(1) and 33(1) of the Securities Act 1978 for offering securities without a registered prospectus.
Sentenced on 29 July 2011 to pay $20,000 reparation and $750 solicitors fees.

Source: Companies Office > National Enforcement Unit >> Investigations and Prosecutions

New Zealand Companies Office, National Enforcement Unit, convictions obtained during the period 1 July 2008 – 30 June 2009 (Listed alphabetically by last name or company name.)

Akroyd, Robert William Cconvicted under:
Sec 126(1)(b) of the Insolvency Act 1967 for fraudulently removing property and Sec 128(1)(c) for wilfully misleading the Official Assignee.
Sentenced on 19 August 2008 to 2 months community detention and 100 hours community service.

Ali, Raiyas (aka Rais Khan) Convicted under:
Sec 128(1)(a) of the Insolvency Act 1967 for failing to advise the Official Assignee of change in name.
Sentenced to 80 hours community service.
Sec 128(1)(f) of the Insolvency Act 1967 for quitting New Zealand without the Official Assignees consent.
Sentenced to 80 hours community service.
Sec 128(1)(a) on the Insolvency Act 1967 for failing to disclose property to the Official Assignee.
Sentenced to 100 hours community service.
Sec 128(1)(g)(i) of the Insolvency Act 1967 for obtaining credit without disclosing bankruptcy.
Sentenced to 100 hours community service.
Sec 128A(1)(b) of the Insolvency Act 1967 for managing a company whilst bankrupt.
Sentenced to 120 hours community service and to pay reparation of $1000.00.
Ali was sentenced on 8 September 2008 and sentences were imposed concurrently.

Boult, Kurtis Convicted and discharged on 24 November 2008 under:
Sec 261(6A) of the Companies Act 1993 for failing to comply with the liquidators summons.

Bridgecorp Limited The company pleaded guilty on 1 charge under:
Sec 59(1)(a) of the Securities Act 1978 for allotting securities in contravention of the Act.
The company was convicted and discharged on the 29 July 2008.

Burcher, Christopher Kerry (Logos Consulting) Convicted under:
Sec 261(6A) of the Companies Act 1993 for failing to supply the liquidator with information.
Convicted on 12 November 2008 to a fine of $2000.00 plus $130.00 court costs.

Byrne, Richard John Convicted under:
Sec 128A (1)(a) of the Insolvency Act 1967 for acting as a director whilst being an undischarged bankrupt.
Sentenced on 18 June 2009 to a fine of $1000.00 plus $130.00 court costs.

Clifford, Robert Wayne Convicted under:
Sec 128(1)(g)(i) of the Insolvency Act 1967 for obtaining credit.
Sentenced on 29 October 2008 to 3 months imprisonment.
Also convicted under:
Sec 128(1)(a) of the Insolvency Act 1967 for failing to notify the Official Assignee of change of address
Sec 128(g)(i) of the Insolvency Act 1967 for otaining credit
Sec 240(1)(b) of the Crimes Act 1961 for otaining credit by deception.
Sentenced on 4 June 2009 to 3 months imprisonment on each charge to be served cumulatively on the current sentence he is serving of 3 and a half years.

Daniels, John Warren Convicted under:
Sec 385(9) of the Companies Act 1993 for being a prohibited director and being involved in the management of a company.
Sentenced on 20 July 2008 to 4 months community detention and 200 hours community service.

Day, Sharon Mary and QED Limited Convicted under:
Sec 59(1) of the Securities Act 1978 for offering securities without a registered prospectus.
Sentenced on 10 June 2009 to a fine of $80,000.00 and ordered to pay $120,000.00 in reparation.

Ellis, Thomas Corbet Convicted under:
Sec 433(1)(f) of the Insolvency Act 2007 for quitting New Zealand without the consent of the Official Assignee.
Sentenced on 28 May 2009 to 40 hours community service.

Elphick, John Douglas Convicted under:
Sec 128A(1)(b) of the Insolvency Act 1967 for managing a company whilst bankrupt.
Sentenced on 11 December 2008 to 8 months home detention and ordered to pay $25,000.00 reparation.

Faiaoga, Folole Convicted under:
Sec 128(1)(f) of the Insolvency Act for quitting NZ and Sec 128A(1)(b) for managing a business whilst being an undischarged bankrupt.
Sentenced on 12 June 2009 to 60 hours and 40 hours community service to be served concurrently.

Global FX (Nico Francken) Convicted under:
Sec 58 of the Securities Act 1978.
Sentenced on 5 June 2008 to a fine of $21000.00.

Goodeve, Graham Ernest Convicted under:
Sec 128A(1)(b) of the Insolvency Act 1967 (13 charges)
Sec 128(1)(g)(i) of the Insolvency Act 1967.
Sentenced on 3 June 2009 to 6 months imprisonment on each of the 13 charges to be served concurrently and a further 6 months imprisonment on the other charge to be served cumulatively. Therefore a total sentence of 12 months imprisonment.

Hadlow, Richard Grosvernor Convicted under:
Sec 128A(1)(b) of the Insolveny Act 1967 for managing a business whilst being a bankrupt.
Sentenced on 13 November 2008 to 5 months imprisonment.

Hansford, Craig Stephen Convicted under:
Sec 128(1)(a) and Sec 128(1)(g)(i) of the Insolvency Act 1967 for failing to notify the Official Assignee of a change in address and for obtaining credit.
Sentenced on 27 February 2009 to 6 months imprisonment.

Harley, David Ian Tweddell Convicted under:
Sec 128A(1)(b) of the Insolvency Act 1967 for managing a business.
Sec 128(1)(a) of the Insolvency Act 1967 for failing to notify the Official Assignee of a change of address and failing to notify the Official Assignee of a change of employment.
Sentenced on 1 April 2009 to 160 hours community service

Hogan, John Claude Convicted under:
sec 128A(1)(b) of the Insolvency Act 1967 for managing a business
sec 128(1)(a) of the Insolvency Act 1967 for failure to give an accurate list of property to the Official Assignee.
Sentenced on 2 June 2009 to 4 months community detention and 150 hours community work.

Holt, Henry Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading while not being a registered trader.
Sentenced to a $1500 fine and $130 court costs on 18 September 2008.

Kunda, Gnanaprasham Convicted under:
Sec 126 of the Insolvency Act 1967 for concealing assets.
Sentenced on 16 September 2008 to 3 months community detention and 100 hours community service.

Lyall, Trevor John Convicted and discharged on 19 September 2008 under:
Sec 261(1) of the Companies Act 1993 for failing to comply with a written notice from the Liquidator.

Noice, Gregory Charles Convicted under:
Sec 261(6A) of the Companies Act 1993 for failing to provide the Liquidator with information.
Sentenced on 24 June 2009 to a fine of $730.00 plus ordered to pay court costs of $130.00 and Solicitors fees of $113.00.

O’Brien, Jamie Paul Cooban Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading while not being a registered trader.
Sentenced to a $1000.00 fine, $250 solicitor’s fees and $130 court costs on 20 January 2009.

McCarthy, Randy Morris Convicted under:
Sec 128(1)(f) of the Insolvency Act 1967 for quitting New Zealand without the Official Assignees consent.
Sentenced on 5 November 2008 to a fine of $300.00 plus court costs of $130.00.

McEwan, Robert Daniel – Stakeholder Finance Limited – Agnes Water Acquisitions Limited Convicted under:
Sec 59 of the Securities Act 1978.
Sentenced on 5 March 2009 to pay reparation of $16,000.00 at $25 a week.

Madden, Keith John Convicted under:
Sec 377 of the Companies Act 1993 (two counts) for making a false statement.
Sentenced on 27 April 2009 to 150 hours community service on each count, to be served concurrently.

Magsons Hardware Limited trading as Henderson Mitre 10 Mega Convicted under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared articles and Sec 107(b) for offering for sale prohibited items.
Sentenced on 20 October 2008 to a fine of $600.00 plus court costs of $130.00.

Prasad, Rajendra (World Commerce NZ Limited) Convicted under: Sec 261(6A) of the Companies Act 1993.
Sentenced on 3 December 2008 to 100 hours community service on both charges, to be served concurrently.

Puleiku, Foketi Lausii Convicted under:
sec 128A of the Insolvency Act 1967 for acting as a director of a company whilst prohibited.
Sentenced on 26 March 2009 to four weeks home detention and reparation of $50 per week to the amount of $8,100.00.

QED Limited and Sharon Mary Day Convicted under:
Sec 59(1) of the Securities Act 1978 for offering securities without a registered prospectus.
Sentenced on 10 June 2009 to a fine of $80,000.00 and ordered to pay $120,000.00 in reparation.

Rao, Vemalla Convicted under:
Sec 126 of the Insolvency Act 1967 for concealing assets.
Sentenced on 16 September 2008 to 4 months community detention and 100 hours community service.

Rea, John Peter Convicted under:
Sec 128A(1)(b) of the Insolvency Act 1967 for managing a business, Sec 128(1)(a) for failing to give an accurate list of property to the Official Assignee and Sec 128(1)(a) for failing to inform the Official Assignee in writing of any change in address.
Sentenced on 8 July 2008 to 6 months community detention plus 300 hours community service and ordered to pay reparation to the value of $22,200.00.

Reddick, Gerald Convicted under:
Sec 128A(1)(b) of the Insolvency Act 1967 (three counts) for managing a company whilst bankrupt.
Sentenced to 60 hours community service to be served concurrently.
Sec 128(1)(g) of the Insolvency Act 1967 for obtaining credit (two counts).
Sentenced to 80 hours community service on both counts, to be served concurrently.
Sec 257(1)(b) of the Crimes Act 1961 (two counts).
Sentenced to 5 months home detention plus 200 hours community service on both counts.
Sentenced on 23 September 2008.

Rodrigo, Saranga Minal Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst not being a registered trader.
Sentenced on 8 April 2009 to a $3000 fine plus $130 court costs.

Russell, John George Convicted under:
Sec 5(1)(c) of the Receivership Act 1993 for acting as a receiver whilst being a director of that company.
Sentenced on 28 November 2008 to a fine of $7000.00.

Savage, Hugh Hamilton Convicted under:
Sec 128A of the Insolvency Act 1967 for acting as a director of a company.
Sentenced on 5 December 2008 to 4 months community detention and $10,000.00 reparation.

Sayes, Gerrard – New Zealand Investment Guild Limited Convicted under:
Reg 41 of the Securities Act (Contributory Mortgage) Regulations 1988 for failure to deliver an annual report to the Registrar.
Convicted and discharged on 25 February 2009.

Spencer, Kim Convicted under:
Sec 128(1)(f) of the Insolvency Act 1967 for quitting New Zealand without the Official Assignees consent and Sec 128(1)(a) of the Insolvency Act 1967 for failing to supply the Official Assignee with a change of address.
Sentenced on 23 October 2008 to 120 hours community service.

Sunny International Trade Limited onvicted under:
Sec 107(a) of the Electricity Regulation 1997 for offering for sale declared articles and 107(b) of the Electricity Regulations 1997 for offering for sale prohibited items.
Sentenced on 11 July 2008 to a total fine of $1200.00 plus court costs and solicitor’s fees.

Takanini Home Improvement Warehouse Limited trading as Mitre 10 Mega Takanini Convicted under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared articles.
Sentenced on 8 January 2009 to a fine of $500.00 plus court costs of $130.00.

Toplink Global Limited Convicted under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared articles.
Sentenced on 24 March 2009 to a $600 fine plus $130 court costs.

Whitley, Phillip Convicted under:
Sec 59 of the Securities Act for making allotments without having a registered prospectus.
Sentenced on 26 August 2009 to a fine of $30 000.00 and ordered to pay reparation of $900.00.

Wilkinson, Barry Edward Convicted under:
Sec 377(a) of the Companies Act 1993 for making a false statement and Sec 107(1)(a) of the Motor Vehicle Sales Act 2003 for making a false statutory declaration.
Sentenced on 15 July 2008 to 100 hours community work in respect of the Companies Act charge and convicted and discharged on the Motor Vehicle Sales Act charge.

Wood, John Basil Francis Convicted under:
Sec 128(1)(g)(ii) of the Insolvency Act 1967 for obtaining credit, 128A(1)(a) for acting as a director and 128(1)(a) for failing to complete statement of affairs.
Sentenced on 21 July 2008 to 7 months imprisonment.

Source: Companies Office > National Enforcement Unit >> Investigations and Prosecutions
Updated 17 January 2012

New Zealand Companies Office, National Enforcement Unit, convictions obtained during the period 1 July 2009 – 31 December 2009 (Listed alphabetically by last name or company name.)

Angus, Darryl (aka Richard Peters) Convicted under:
section 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being unregistered.
Sentenced on 22 December 2009 to a fine of $1,500.and ordered to pay solicitors fees of $130.00 and court costs of $130.00.

Anslow, Gordon (ABC Plumbing) Convicted under:
Sec 261(6A) and 194(4) of the Companies Act 1993 for failing to supply information to the liquidator and failing to keep adequate books and records.
Sentenced on 8 December 2009 to a $7000.00 fine.

Barker, Warwick George Convicted under:
Sec 126(1)(g)(i) of the Insolvency Act 1967 for concealing assets
Sec 274(1)(b) of the Companies Act 1993 for failing to deliver property to the Liquidator.
Sentenced on 9 July 2009 to 200 hours community service on each charge, to be served concurrently.

Chevin, Peter Louis Convicted under:
Sec 261(6A) of the Companies Act 1993 for failing to attend a liquidators meeting.
Sentenced to 80 hours community service on 21 July 2009.

Clegg, Brian Samuel (Clegg and Co Finance Ltd) Convicted under:
Sec 58 of the Securities Act 1978 (2 charges) relating to the provision of misleading information to investors in the prospectus.
Sec 377 (3 charges) of the Companies Act 1993 relating to the filing of reports to the Trustees containing false information.
Sentenced on 15 December 2009 to 12 months home detention. He was also convicted and discharged under Sec 59A of the Securities Act 1978.

Cross Panel and Paint Limited Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 12 November 2009 to a fine of $3000.00 and ordered to pay courts costs of $130.00 plus solicitors fees of $200.00.

Darby, Patrick Antony Convicted under:
Sec 38(a) of the Financial Reporting Act- ordered to pay court costs of $100.00.
Sec 194 of the Companies Act 1993 – ordered to pay court costs of $75.00.
Sentenced on 25 September 2009.

The Fashion Leader Convicted under:
Sec 107(a) of the Electricity Regulations 1997 on four counts relating to offering for sale declared electrical items.
Sentenced on 4 November 2009 to a fine of $500.00 plus court costs of $130.00 and $100.00 solicitors fees.

Feng Bao International Trading LTD Convicted on 7 counts under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared electrical items.
Sentenced on 23 September 2009 to a fine of $1050.00 plus court costs of $130 on 1 charge and convicted and discharged on the other 6 charges.

Import Direct Limited Convicted under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared electrical items.
Sentenced on 2 September 2009 to a fine of $600.00 plus court costs of $130.00 on one charge and convicted and discharged on other four charges.

Joe, Leigh Maria Convicted under:
sec 107(a) of the Electricity Regulations 1997 for offering for sale declared electrical items.
Sentenced on 17 September 2009 to a fine of $500.00 plus court costs of $130.00 and solicitors fees of $150.00.

Knight, Michael Helsby Convicted under:
Sec 382(1)(b) for taking part in the management of a business
Sec 128A(1)(b)for taking part in the management of a business whilst bankrupt and
Sec 128(1)(a) for failing to disclose property to the Official Assignee.
Convicted on 6 October 2009 and will be sentenced if called upon.

Krotolica, Vojislav Convicted under:
Sec 433(f)(i) of the Insolvency Act 2006 for quitting New Zealand without the consent of the Official Assignee.
Convicted and discharged on 22 December 2009.

McLean, Patrick Leef Convicted under:
Sec 377 of the Companies Act 1993 for amending the Companies Register without authority knowing it to be false.
Sentenced on 15 October 2009 to 200 hours community work. An order was made pursuant to Sec 382(1)(b) of the Companies Act 1993 prohibiting McLean from being a director of a company for a period of 5 years following his conviction.

Magsons Hardware Limited Convicted under:
sec 107(a) of the Electricity Regulations 1997 (five counts) for offering for sale declared electrical items.
Sentenced on 30 November 2009 to a fine of $800.00 plus $650.00 court costs.

McNamara, Stephen Patrick Convicted under:
Sec 10 of the Financial Reporting Act and sentenced to a fine of $12,000.00 together with court costs of $130.00.
Convicted and discharged under sec 36(1) of the Financial Reporting and Sec 206 and 189(5)(b) of the Companies Act 1993.
Sentenced on 9 November 2009.

Morgan, Rhys David (Investment Management Ltd) Convicted under:
Sec 59 of the Securities Act 1978 (2 charges) in relation to the Gables Proportionate Ownership Scheme.
Sentenced on 25 November 2009 to a fine of $15,000.00 on each charge and court costs of $130 on each charge with $500.00 solicitors fees.

Morris, Christopher Cliff Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 30 July 2009 to a $3000.00 fine.

Penfold, David Convicted under:
Sec 10 of the Financial Reporting Act.
Sentenced to a fine of $12,000.00 together with court costs of $130.00 on 9 November 2009.
Convicted and discharged under sec 36(1) of the Financial Reporting and Sec 206 of the Companies Act 1993.

Peters, Richard (aka Darryl Angus) Convicted under:
section 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being unregistered.
Sentenced on 22 December 2009 to a fine of $1,500.and ordered to pay solicitors fees of $130.00 and court costs of $130.00.

Scoble, Paul Convicted under:
Sec 107(a) of the Electricity Regulations Act 1997 for selling a declared article and
Sec 107(aa) for selling an item without a declaration of compliance.
Sentenced on 17 December 2009 to a fine of $500.00 per charge plus $130.00 court costs.

Shearer, Malcolm David Convicted under:
Sec 261 of the Companies Act 1993 for failing to comply with a written notice from the Liquidator. Sentenced on 28 September 2009 to a fine of $1850.00 plus solicitors fees of $113.00.

The Style Master Limited Convicted under:
Sec 107(a) of the Electricity Regulations 1997 for offering for sale declared articles and 107(aa) of the Electricity Regulations 1997 for selling outlet devices without a declaration of compliance.
Sentenced on 17 July 2009 to a fine of $500 per count (total of $1500.00) and $200 solicitors fees and $130 court costs.

Swift, Clinton John Convicted and discharged on 14 July 2009 under:
Sec 96 of the Motor Vehicle Sales Act 2003 for trading whilst being banned to do so.

Toe Limited / Simon Guppy Convicted under:
Sec 214 of the Companies Act 1993 for failing to deliver an annual return to the Registrar of Companies.
Sentenced on 17 November 2009 to a fine of $600.00 and ordered to pay $260.00 court costs.

Whitelaw, Barry Convicted under:
sec 128A(1)(b) of the Insolvency Act 1967 for being self employed without the consent of the Official Assignee.
Sentenced on 2 December 2009 to 10 months and 2 weeks imprisonment.

Whitfield, Mark James Convicted under:
Sec 433(1)(g) of the Insolvency Act 2006 for obtaining credit.
Sentenced on 6 November 2009 to 60 hours community service.

Wilkinson, Barry Edward Convicted under:
Sec 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 19 October 2009 to a fine of $1500.00 and $130.00 court costs.

Source: Companies Office > National Enforcement Unit >> Investigations and Prosecutions
Updated 17 Januray 2012

New Zealand Companies Office, National Enforcement Unit, convictions obtained during the 2010 year. (Listed alphabetically by last name or company name.)

Steven Ansley (also known as Alex Hong) Convicted under:
Section 4(1) (ab) (four charges) of the Imports and Exports (Restrictions) Act 1988 for Transporting with the intent to export hazardous waste.
Sentenced on 26 August 2010 to a NZ$13,590 fine.

Nicholas Birch Convicted under:
Section 419(1) (10 charges) of the Insolvency Act 2006 for contracting debt and not expecting to repay it.
Section 436(1)(a) of the Insolvency Act 2006 for acting as a director.
Section 382(1)(b) of the Companies Act 1993 for managing a business while prohibited.
Section 377(1)(a) of the Companies Act 1993 for making a false statement.
Sentenced on 26 November 2010 to four years and ten months imprisonment – ten months on these charges and four years on the Police Crimes Act charges.

Annette May Black Convicted under: Section 126(1)(e) of the Insolvency Act 1967 for producing false statements.
Sentenced on 1 October 2010 to six months home detention and 250 hours community service.

Anthony Walpole Bowden (Five Star Finance) Convicted under:
Section 58(1) of the Securities Act 1978 relating to issuing securities referred to in an advertisement.
Section 58(3) (2 charges) of the Securities Act 1978 relating to the provision of misleading information to Investors in the Prospectus.
Sentenced on 21 December 2010 to nine months’ home detention and 300 hours community work.

Barry William Samuel Brown-Rapana Convicted under:
Section 433(1) (a) of the Insolvency Act 2006 for failing to attend before the Official Assignee when summonsed to do so.
Sentenced on 2 September 2010 to 80 hours community service.

Mark Ronald Bryers Convicted under:
Section 194 (2 Charges) under the Companies Act 1993 for failing to keep adequate accounting records. Fined NZ$930.00 plus NZ$130.00 court costs on each charge.
Section 189 under the Companies Act 1993 for failing to ensure that the Company kept records. Fined NZ$930.00 plus NZ$130.00 court costs of NZ$130.00
Section 36(1) (2 charges) under the Financial Reporting Act 1993 for failing to complete financial statements. Fined NZ$16,875.00 plus NZ$130.00 court costs on each charge.
Section 37(a) (27 charges) under the Financial Reporting Act 1993 for failing to complete and sign financial statements. Convicted and discharged.
Section 261(6A) under the Companies Act 1993 for failing to attend meetings of creditors. Sentenced to 75 hours community work.
Section 239AW (1) under the Companies Act 1993 for failing to attend a watershed meeting. Fined NZ$930.00 plus NZ$130.00 court costs.
Sentenced on 20 May 2010.

Neville Ian Cant Convicted under:
Section 59 (2 charges) under the Securities Act 1978 for making an offer of a security to a member of the public without a registered prospectus and making an allotment of securities to a member of the public without a registered prospectus.
Sentenced on 9 June 2010 to a fine of NZ$40,000 on each charge.

John Malcolm Carr Convicted under:
Section 19 & 39 (6 charges) of the Financial Reporting Act 1993, for failing to submit financial statements.
Sentenced on 15 October 2010 on two charges to a fine of NZ$6,000 plus court costs of NZ$130 and convicted and discharged on four charges.

Walter Cavendish Convicted under:
Section 382(1) (b) (2 charges) of the Companies Act 1993 for acting as a directory whilst being prohibited by virtue of being convicted of a crime of dishonesty.
Sentenced on 18 February 2010 to 100 hour’s community service.

Terry Lung Chan Convicted under:
Section 10 &13 (1) of the Major Events Management Act 2007 for making a representation in a way that was an association between Rugby World Cup 2011 and goods that were imported.
Sentenced on 10 September 2010 to a fine of NZ$20,000.

Javed Oqbaal Chaundhry Convicted under:
Section 95 (1) (a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 8 March 2010 to a fine of NZ$1700.00 plus court costs of NZ$130.00.

CL NZ Trading Limited Convicted under:
Section 10 &13 (1) of the Major Events Management Act 2007 for making a representation in a way that was an association between Rugby World Cup 2011 and goods that were imported.
Sentenced on 10 September 2010 to a fine of NZ$20,000.

Graham Murray Cleaver Convicted under:
Section 433(1)(a) of the Insolvency Act 2006 (2 charges) for failing to disclose property to the Official Assignee
Section 433(1) (f) of the Insolvency Act 2006 and Sec 128(1) (f) of the Insolvency Act 1967 for quitting New Zealand without the permission of the Official Assignee.
Sentenced on 30 March 2010 to:
Six months community detention on each charge for failing to disclose property to the Official Assignee charges.
150 hours community work on each of the quitting New Zealand charges.
The sentences imposed are concurrent, so the end sentence is six months community detention and 150 hours community work.

Brett Eric Collins Convicted under:
Section 96(1)(a) of the Motor Vehicle Sales Act 2003 for participating in the business of motor vehicle trading while a banned person.
Sentenced on 1 March 2010 to a fine of NZ$10,000.00 and court costs of NZ$130.00. Banned for a further five years from being a trader.

Combined Financial Services Limited Convicted under:
Section 59 (two charges) under the Securities Act 1978 for making an offer of a security to a member of the public without a registered prospectus and making an allotment of securities to a member of the public without a registered prospectus.
Sentenced on 9 June 2010 to a fine of NZ$14,000 on each charge.

Graeme Edward Cowan Convicted under:
Section 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 8 September 2010 to a NZ$700 fine.

Ross Dallimore Convicted under:
Section 436(1)(b) of the Insolvency Act 2006 for carrying on in business.
Sentenced on 18 August 2010 to 200 hours community service.

Ony Davies (aka Annie Davies) Convicted under:
Section 128A (1) (b) of the Insolvency Act 1967 for managing a business whilst being an undischarged bankrupt. Sentenced to 200 hours community service.
Section 128(1)(g)(i) of the Insolvency Act 1967 (two charges) for obtaining credit. Sentenced to 200 hours community service.
Section 433(1)(g)(i) of the Insolvency Act 2006 for obtaining credit. Sentenced to 200 hours community service.
Section 433(1)(a) of the Insolvency Act 2006 for failing to provide the Official Assignee with a change of address. Sentenced to 60 hours community service and ordered to pay $1,500.00.
Sentenced on 13 April 2010. The community service is to be served concurrently.

Mark Robert Dawson Convicted under:
Section 436(1) (a) of the Insolvency Act 2006 for acting as a director of a Company while being bankrupt.
Sentenced on 17 February 2010 to 50 hours community service.

Tayne Maitland Derriman Convicted under:
Section 194(4) under the Companies Act 1993 for failing to keep company records.
Section 261(6A) under the Companies Act 1993 failing to supply the liquidator information as requested by the liquidator.
Sentenced on 30 June 2010 to a fine of NZ$1,600 together with court costs of NZ$130.00.

Reece Walters Deslaurier Convicted under:
Section 382(1)(b) (four charges) of the Companies Act 1993 for managing a business while prohibited
Section 377(1)(a) (three charges) of the Companies Act 1993 for making a false statement.
Sentenced on 6 October 2010 to six months imprisonment to be served concurrently with charges laid by the Police, which he received imprisonment of three years four months.

Zhang Do Convicted under:
Section 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 3 November 2010 to a fine of NZ$6,500.00, reparation of NZ$11,963.59, court costs of NZ$132.89 and solicitors fees of NZ$300.00.

Michael Paul Donovan Convicted under:
Section 386A of the Companies Act 1993 for managing a Phoenix Company.
Convicted and discharged on the 20 April 2010. As a result of this conviction, he is prohibited from being a director, promoter or taking part in the management of a company for a period of five years pursuant to section 382 of the Companies Act 1993.

Donald Clifton Jacobs Convicted under:
Section 377 of the Companies Act 1993 for making a false statement.
Section 382(1) (b) of the Companies Act 1993 for acting as a directory whilst being prohibited by virtue of being convicted of a crime of dishonesty.
Sentenced on 24 September 2010 to 75 hour’s community service.

Otis Johnson Convicted under:
Section 128(1)(b) of the Insolvency Act 1967 for managing a business.
Section 128(1)(g)(1) of the Insolvency Act 1967 for obtaining credit.
Sentenced on 25 March 2010 to six months community detention, 150 hours community work and ordered to pay NZ$15,000.00 reparation.

John Joseph (also known as Salam Mansoor Abdelabbus Al-Bawi) Convicted under:
Section 377(1)(a) of the Companies Act 1993 for making a false statement.
Section 382(1) of the Companies Act 1993 for managing a business while prohibited.
Sentenced on 14 September 2010 to a fine of NZ$2000 plus NZ$130 court costs.

Nicholas George Kirk (Five Star Finance) Convicted under:
Section 58(1) of the Securities Act 1978 relating to issuing securities referred to in an advertisement.
Section 58(3) (2 charges) of the Securities Act 1978 relation to the provision of misleading information to investors in the prospectus.
Section 41 of the Financial Reporting Act 1993 failed to record amount receivable which was the subject of litigation proceedings.
Sentenced on 21 December 2010 to two years and eight months imprisonment.

Jeffrey Douglas Knowles Convicted under:
Section 113(a) of the Radiocommunications Act 1989 for transmitting radio waves in breach of the conditions of the radio licence issued under Sec 111(3) of the Act.
Sentenced on 30 September 2010 to a fine of NZ$4000 court costs of NZ$130 Solicitors fees of NZ$250 and forfeiture of his equipment valued at NZ$1400.

Richard Michael Lascelles Convicted under:
Section 385 of the Companies Act 1993 for managing a company whilst being prohibited from managing pursuant to section 385 of the Companies Act 1993
Section 436(1) (b) of the Insolvency Act 2006 for taking part in the management of a business whilst being an undischarged bankrupt.
Sentenced on 14 February 2010 to 175 hour’s community service.

Michael James Lodge Convicted under:
Section 59(1)(b) (3 charges) of the Securities Act 1978 for being an issuer of a security offered to the public that was allotted without the subscriber receiving an investment statement before subscribing.
Sentenced on 7 October 2010 to pay reparation to the amount of NZ$44,985 and NZ$130 court costs.

Henry Luapo Convicted under:
Section 420(2)(a) of the Insolvency Act 2006 for concealing assets.
Section 436(1)(b) of the Insolvency Act 2006 for taking part in the management of a company whilst being an undischarged bankrupt.
Sentenced on 15 October 2010 to 220 hours community service on each charge to be served concurrently.

Marcus MacDonald (Five Star Finance) Convicted under:
Section 58(1) of the Securities Act 1978 relating to issuing securities referred to in an advertisement.
Section 58(3) (2 charges) of the Securities Act 1978 relating to the provision of misleading information to investors in the prospectus.
Section 41 of the Financial Reporting Act 1993 failed to record amount receivable which was the subject of litigation proceedings.
Sentenced on 21 December 2010 to two years and three months imprisonment.

Anthony Lawrence Mallon Convicted under:
Section 128(1)(a) of the Insolvency Act 1967 for failing to complete a Statement of Affairs and failing to attend before the Official Assignee after being summonsed to do so.
Sentenced on 16 April 2010 to 200 hours community work.

Finance Brokers Funds Management Limited Convicted under:
Regulations 12 and 41 (three charges) under the Securities Act (Contributory Mortgage) Regulation 1988 for failure to deliver annual Reports to the Registrar.
Sentenced on 22 February 2010 to a fine of NZ$1,500.00 and court costs of NZ$398.67.

Jerry Gounder (aka Tamendra Gounder) Convicted under:
Section 433(1)(f) (three charges) of the Insolvency Act 2006 for quitting New Zealand without the permission of the Official Assignee.
Sentenced on 19 May 2010 to 120 hours community service plus NZ$130.00 court costs on each charge.

Grant Ngaere Harris Convicted under:
Section 95(1)(a) of the Motor Vehicle Sales Act 2003 for trading whilst being an unregistered trader.
Sentenced on 18 January 2010 to a fine of NZ$500.00 plus court costs of NZ$130.00.

Michael Thomas Hart Convicted under:
Section 128A(1)(b) of the Insolvency Act 1967 and Section 436(1)(b) (two charges) of the Insolvency Act 2006 for taking part in the management of a business whilst being an undischarged bankrupt.
Sentenced on 21 January 2010 to three months community detention and 250 hours community work.

David Ian Henderson Charged under:
Section 10 and 36(1)(a) of the Financial Reporting Act 1993 for failing to complete financial statements, convicted and discharged.
Section 15 and 38(a) of the Financial Reporting Act 1993 for failing to have audited financial statements, convicted and discharged.
Section 18 and 38(b) of the Financial Reporting Act 1993 for failing to deliver financial statements to the Registrar of Companies, charge proved penalty NZ$7,500 plus NZ$130 court costs.
Sentenced on 15 June 2010.

Andrew Nicolas Holdgate Convicted under:
Section 128(1)(b) (4 charges) and Section 62 of the Insolvency Act 1967 for carrying on or taking part in the management or control of a business.
Section 128(1)(a) and Sec 60 (10 charges) of the Insolvency Act 1967 for failing to comply with the duties of an undischarged bankrupt.
Section 128(1)(g)(i) under the Insolvency Act 1967 for obtaining credit while being an undischarged bankrupt
Sentenced on 9 June 2010 to four months home detention.

Investment Management Limited Convicted under:
Section 59 (2 charges) under the Securities Act 1978 for making an offer of a security to a member of the public without a registered prospectus and making an allotment of securities to a member of the public without a registered prospectus.
Sentenced on 9 June 2010 to a fine of NZ$14,000 on each charge.

Melric International Limited Convicted under:
Section 107(aa) of the Electricity Regulation 1997 for offering for sale electrical items without a declaration of compliance.
Sentenced on 13 December 2010, convicted and discharged, with NZ$200 Solicitors fees and NZ$132.89 court costs.

Irene Jayne Page (formerly Irene Joan Webster) Convicted under:
Section 433(1)(g) (two charges) of the Insolvency Act 2006 for obtaining credit.
Section 433(1)(a) (three charges) of the Insolvency Act 2006 for failing to notify the Official Assignee of change of address.
Sentenced on 30 September 2010 to 150 hours community work.

Benjamin James Papa Convicted under:
Section 436(1)(b) under the Insolvency Act 2006 for carrying on in the management or control of a business.
Section 128 A(1)(b) under the Insolvency Act 1967 for carrying on in the management or control of a business.
Section 420(2)(a) under the Insolvency Act 2006 for concealing assets.
Sentenced on 2 June 2010 to nine months home detention.

Aaron Richard Playle Convicted under:
Section 10 of the Financial Reporting Act 1993. Sentenced to a fine of NZ$12,000.00, together with court costs of NZ$130.00.
Section 13 & 36(1)(b) of the Financial Reporting Act 1993 – convicted and discharged
Section 18 & 38(b) of the Financial Reporting Act 1993 – convicted and discharged.
Section 189(5) & 374(2) of the Companies Act 1993 – convicted and discharged.
Section 206(3) & 374(2) of the Companies Act 1993 – convicted and discharged.
Sentenced on 9 April 2010.

Richard Allen Potter Convicted under:
Section 113 of the Radiocommunications Act 1989 for transmitting radio waves in breach of the conditions of the radio licence issued under Section 111(3) of the Act.
Sentenced on 22 April 2010, to a fine of NZ$1750.00 plus court costs of NZ$130.00 and an order of forfeiture was imposed for the equipment by the courts.

Lynne Pryor Convicted under:
Section 380 of the Companies Act 1993 for fraudulently carrying on in business.
Sentenced on 31 July 2010 to a NZ$18,000 fine plus court costs of NZ$130.

Neville Leslie Sage Convicted under:
Section 436(1)(b) of the Insolvency Act 2006 for taking part in the management of a company whilst being an undischarged bankrupt.
Sentenced on 24 March 2010 to 200 hours community service and NZ$500.00 reparation.

Joseph Tuala Convicted under:
Section 128(1)(a) of the Insolvency Act 1967 for carrying on in business whilst an undischarged bankrupt.
Section 436(1)(a) of the Insolvency Act 2006 for acting as a director.
Section 436(1)(b) of the Insolvency Act 2006 for taking part in the management of a business.
Sentenced on 19 November 2010 to 200 hours community service.

Lu Zhang (SP Trading) Convicted under:
Section 377 of the Companies Act 1993 (74 charges) for making false statements.
Sentenced on 4 November 2010, convicted and discharged on all charges.

Malcolm David Shearer Convicted under:
Section 433(1)(g)(i) of the Insolvency Act 2006 for obtaining credit.
Sentenced on 16 June 2010 to a fine of NZ$2,000 and ordered to pay reparation of NZ$8,500 plus court costs.

James Chor Kiam Tay Convicted under:
Section 126(1)(g)(i) of the Insolvency Act 1967 for concealing assets.
Section 128A(1)(b) (2 charges) of the Insolvency Act 1967 for managing a business.
Sentenced on 10 November 2010 to 23 months imprisonment.

Christine Torr Convicted under:
Section 261 of the Companies Act 1993 for failing to comply with a written notice from the liquidator.
Sentenced on 23 August 2010, convicted and discharged.

Source: Companies Office > National Enforcement Unit >>Investigations and Prosecutions
Updated 17 January 2012