Former OPI Pacific Finance Limited directors Mark Lawrence Lacy and Jason Robert Duncan Maywald have been sentenced today in the Auckland High Court.
Each were ordered to pay AUD $100,000 in reparation to be paid to the company’s receivers and sentenced 200 hours of New Zealand-based community work.
The case involved both Australia-based directors pleading guilty to two charges on 21 August 2015, under the Securities Act 1978. These charges related to a registered prospectus and an advertisement distributed in 2007, which the Financial Markets Authority
(FMA) alleges included untrue statements.
FMA acting director of enforcement and investigations Paul O’Neil, said the outcome of the case hammers home the importance of directors’ carrying out their responsibilities correctly and ensuring investors are well-informed about a company’s position.
“The 2007 OPI offer documents contained untrue statements relating to the performance and management of the business including the non-disclosure of adverse changes to the financial position of the company,” O’Neil said.
“This prevented investors from making informed decisions about their investments by not disclosing key information about the company."
OPI provided finance to entities involved in commercial property investments and developments, going into receivership September 2009 and into liquidation November 2011.
Over 10,000 investors were owed approximately NZD $247 million. As at July 2015, OPI investors had been repaid 30.23 cents in the dollar. The remaining former directors of OPI, David Mark Anderson and Craig Robert White, will face trial on the 5 October 2015 in the Auckland High Court.