SPCS

SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

Fraud Office defends difficult prosecution involving acquittal of 2 of 3 SCF chiefs

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The Serious Fraud Office (SFO) is defending its decision to bring charges against three former South Canterbury Finance (SCF) heads after two of the trio were acquitted yesterday.

Former South Canterbury Finance chief executive Lachie McLeod, 50, and former director, accountant Robert White, 70, were found not guilty on all charges by Justice Paul Heath after a long and complex trial.

The pair are now considering legal action against the Serious Fraud Office (SFO) for bringing the charges.

Former director, lawyer Edward Oral Sullivan, 72, was found guilty on five of nine charges, including making false statements and misuse of a document for pecuniary advantage. [He was director of SCF for 20 years from 23/04/90 to 31/03/10].

The SFO’s director, Julie Read, referred to the difficulties in bringing a case of this nature before the court. “This was a difficult and complex prosecution,” she said. [Read more…]

Former SCF director – Edward Sullivan – found guilty of fraud in relation to $1.58B company collapse

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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.

Edward Sullivan SCF director

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

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