About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

Receivers to get Nathans directors' $885,000 reparations

The $885,000 Nathans Finance directors were ordered to pay in reparation will go the the receivers for the benefit of all out-of-pocket investors, a High Court judge has ruled.

Thursday, 28 June 2012

by Jenny Ruth

Justice Paul Heath had to decide whether the money, plus accrued interest, should go to the receivers, Colin McCloy and John Waller of PricewaterhouseCoopers, or, as the Crown argued, it should be distributed by the court only to those who invested or reinvested in Nathans after the December 13, 2006 prospectus was issued.

Last year, Justice Heath convicted Nathans Finance directors Mervyn Doolan, Roger Moses and Don Young of making untrue statements in that prospectus.

If the prospectus had correctly identified the risks investors were facing "it is likely that receivers would have been appointed by the end of December 2006," Justice Heath said in his judgment.

Nathans Finance didn't go into receivership until August 2007.

If the company had gone into receivership earlier, those who had invested before the prospectus was issued "would have received a greater dividend," Justice Heath said.

"It seems to me preferable that the reparation be paid to the receivers of Nathans who can then use it for the benefit of all who have suffered loss," he said.

The funds are likely to be of greater assistance to investors, because the receivers can use them to pursue other means of recovery, than if only those who invested after December 13, 2006 received the money.

"The vast majority of the investors would not receive a material distribution from the reparation monies, particularly after administration costs are deducted," Justice Heath said.

In December 2006, Nathans owed its investors about $154 million and that increased to $174 million at the time of receivership. A total of $68.9 million was either reinvested or contributed as new investments between the two dates.

In convicting the directors, Heath ordered the reparations as well as sentencing Doolan and Moses to more than two years each in jail and Young to nine months home detention and 300 hours community service.

A fourth director, John Hotchin eaelier pleaded guilty to similar charges and was sentenced to 11 months home detention, 200 hours community service and fined $200,000.

Justice Heath noted another judge, Justice Graham Lang, ordered Hotchin's reparation should be paid to the receivers.


Comments from our readers

No comments yet

Sign In to add your comment


Printable version


Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Rabobank 0.75
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
NZCU Auckland 1.00 Success Saver
First Credit Union 0.75 Online Savings
Rabobank 0.75 Rabobank PremiumSaver - max rate
Heretaunga Building Society 0.60 On Call
NZCU Baywide 0.60 Success Saver
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.10 0.10 0.11
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
BNZ 0.10 0.10 0.10
Heartland Bank 0.40 0.40 0.40
Kiwibank 0.05 - -
Kiwibank 0.25 - -
Nelson Building Society - - -
SBS Bank - - -
TSB Bank 0.25 0.25 0.26
Westpac 0.20 0.21 0.23
Westpac 0.05 0.05 0.05
Westpac 0.25 0.26 0.27

More »

Previous News
Latest Trends
Coming Soon

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2021. Tarawera Publishing Ltd. All Rights Reserved.