South Canterbury Finance fraud five named

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Mon, 13 Feb 2012 12:55p.m.

Company founder Alan Hubbard died in 2011

Company founder Alan Hubbard died in 2011

All five men charged with corporate fraud following the collapse of South Canterbury Finance have been publicly named.

The remaining two accused men did not seek to continue their name suppression following a hearing at Timaru District Court on Monday.

They are Timaru lawyer Ed Sullivan, 70, and retired accountant Bob White, 68, both former SCF directors. Both men issued statements through their lawyers, denying the charges and saying they will be defended.

The other three accused are former company chief executive Lachie McLeod, Terry Hutton and former company finance officer Graeme Brown.

The five are charged with 21 offences relating to $1.7 billion worth of transactions, brought by the Serious Fraud Office following the collapse of SCF in 2010.

It is the largest case of alleged corporate fraud in New Zealand, and the charges include theft by a person in a special relationship, obtaining by deception, false statements by the promoter of a company and false accounting. They carry maximum penalties of between seven and 10 years' imprisonment on conviction.

The company's collapse triggered a government payout to investors under the Crown Retail Deposit Guarantee Scheme.

Company founder Alan Hubbard died in a road accident last year.

NZN

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Comments

03 Apr 2012 04:21p.m.

BUB wrote:

yeah Neil - they will soon have rights to go for a swim, record a music video and use internet.

14 Feb 2012 08:23p.m.

Gerald wrote:

One notable absence from the group charged are the auditors. Why??? And to answer Neil's question, because our justice system is obviously able to be manipulated, and thus, is corruptible, and could well be argued, is corrupt. Dotcom is getting a very rough deal, a politically motivated one methinks, which adds further to the judicial stench permeating this case.

14 Feb 2012 02:25p.m.

ridley wrote:

Well said Neil,could not have put it better.

13 Feb 2012 02:02p.m.

Neil wrote:

Using the same logic as applied to Mr Kim Dotcom I presume all will be held in custody without bail and all their credit cards and bank accounts (including money in trusts) frozen, along with all personal possessions and property immediately being seized and put into storage for possible future sale to recoup losses suffered. If this is not the case why not?