The auditors and former directors of Strategic Finance Limited have settled civil action brought by the receivers of the failed finance company and agreed to pay $22 million. Some 10,000 Strategic investors owed $367.8 million have already been repaid 10 cents in the dollar, or $36.8 million, and the receiver, PwC’s, John Fisk, still estimates they will get between 12% and 20% of their principal back following the latest settlement.
The settlement will see former directors Kerry Finnigan, Graham Edward Jackson, Marcel Aubrey Lindale, Timothy John Rich, Denis Grenville Thom and David John Wolfenden barred from directing finance companies for five years. [FMA remains of the view that they are likely to have breached their disclosure obligations under the Securities Act see below]
“The terms of the settlement deliver a strong deterrence message and include enforceable undertakings from the directors of Strategic not to act as a director of an issuer of securities to the public for five years,” Belinda Moffat, director of enforcement of the Financial Markets Authority (FMA), said.
But one investor thinks most of those who have lost money will not believe justice has been served, with the directors seeming to have “got away with murder.”
The FMA is refusing to say exactly who will be making the payment. [Read more…]