A former director of South Canterbury Finance (SCF) has been found guilty of what has been billed the “biggest fraud in New Zealand’s history”, in relation to the company’s $1.58 billion collapse in 2010. In the High Court at Timaru this morning, Edward Sullivan, aged 72, a former lawyer, was found guilty of five of the nine charges he faced. He has been remanded on bail and will face sentencing on 12 December 2014.
Photo: Stuff News: Edward Sullivan (far left)
Justice Heath criticised the Serious Fraud Office (SFO) investigation into the company’s collapse, stating there might have been documents that showed transactions were being concealed but the “deficiencies in the investigation by the SFO office meant that evidence did not exist.”
Another CFC former director Bob White, 70, and former chief executive, accountant Lachie McLeod, 50, were found Not guilty on ALL counts.
The men faced a total of 18 charges under the Crimes Act, including theft by a person in a special relationship, obtaining by deception, false statements by the promoter of a company, and false accounting – each carrying maximum penalties ranging from seven to 10 years’ jail.
Full story: http://www.stuff.co.nz/business/industries/10612568/SCF-trial-has-one-guilty-two-not-guilty-verdicts