Five Star Finance Directors Prosecuted

The Companies Office has laid criminal charges in the Auckland District Court against Marcus MacDonald, Anthony Bowden, Nicholas Kirk, the Directors of Five Star Finance Limited and Five Star Debenture Nominee Limited.

“The charges relate to securities being offered and allotted to members of the public without there being a registered prospectus, investment statement or trustee appointed,” said Registrar of Companies Neville Harris.

The prosecution is being carried out by the National Enforcement Unit of the Companies Office.

The defendants are due to appear in the Auckland District Court on August 4th 2008.

Mr Harris said the case was now before the Court and it would not be appropriate to comment further.

The Securities Commission and the Serious Fraud Office are conducting separate investigations into the affairs of the Five Star group, and the agencies have been liaising closely as appropriate.

The charges

The Directors of Five Star Finance Limited (in receivership and liquidation), and the Directors of Five Star Debenture Nominee Limited (in liquidation) are charged with offering and allotting debenture stock to members of the public without having a registered prospectus or investment statement.

Penalties

If convicted on these Securities Act charges, the directors and promoters are liable to a fine not exceeding $300,000.

Five Star

Five Star Finance Limited went into receivership on the 5th of September 2007. Five Star Debenture Nominee Limited went into liquidation on the 5th of November 2007.